45 pc of Finway customers have taken moratorium pan-India
Jun 10, 2020
New Delhi [India], June 10 : Non-banking financial company (NBFC) Finway on Wednesday expressed concern regarding current loan repayments in the country and mindset of borrowers.
It said the borrowers' mindset has changed quite significantly with regards to loan repayment as well as investments -- especially since the Reserve Bank of India (RBI) announced a three-month extension of the moratorium on loans till August 31.
Finway said that 45 per cent of all its borrowers have applied for a moratorium pan-India. This behaviour is more distinctly noticed in the northern region that is in places like Delhi-NCR.
Most borrowers that have opted for moratorium belong to the middle age group -- which means they are either salaried individuals or business entrepreneurs. Depending upon the nature and scale of the lending institution, the outstanding loans that are coming under moratorium are ranging from 30 to 70 per cent.
Not only has there been an increase in the number of borrowers asking for the moratorium, Finway has also observed a sharp fall in the demand for loans. The customers are being reluctant in taking loans or taking any risk in their business.
The only thing in their minds right now is to pay the loans back as quickly as possible. They are cutting down the costs drastically, and all they are doing is restructuring their loans. Most of the NBFCs, in fact, are facing such situations with regard to customers.
The customers are already facing a lot of problems due to pay cuts and layoffs right now, and a majority of them have agreed to not spend any money on the non-essential items for the next few months till the situation gets a little better.
Rachit Chawla, Founder and CEO of Finway, said the Covid-19 pandemic that began as a health emergency has now evolved into a full-blown economic crisis. "There is not one sector in the country that has been untouched by this menace."
Chawla said the economic situation has been grim and financial uncertainty has sneaked up on salaried individuals as well as borrowers. "Consequently, people who are under the pressure of repayment of loans are going through a very difficult crisis," he said in a statement.
