Missing mobile, appliances, credit card as well as some personal loan customers

New delhi date. 27 April 2020, Monday

Collection agents cannot find some customers who have taken mobile, appliances as well as personal loans from banks as well as NBFCs during the long period of lockdown implemented to curb the growing spread of Corona virus. In other words, some customers who take this type of loan have gone missing.

The recent favorable monetary policy adopted by banks as well as NBFCs has led to a significant shift in the proportion of other loans, including mobiles and appliances, as well as personal loans. With the advent of flexible monetary policy, it has become very easy for people of all walks of life to take out loans and this has led to a significant increase in such loans.

The outbreak of the corona virus in the country last March led to a lockdown in the last phase of March, which continues to this day. During this long period of lockdown, some of the customers who took such locks from banks and NBFCs were not noticed, their collection agents said.

Following the implementation of the lockdown, the government has also announced certain reliefs for borrowers. But the loan amount or interest is not waived, only concessions are given. Going forward, it has to be repaid.

Due to the easy availability of different types of loans, even the youngest people took a variety of loans without any hesitation, including mobile phones, consumer durables, various appliances and personal key segments. In addition, the credit card currency has also risen significantly in recent times.

Due to the strict implementation of the lockdown, business-employment-industries across the country have come to a standstill and all types of classes associated with it have also been able to gather in their respective homelands. So that they may not be available in their workplace. Customers cannot be contacted. In other words, they are missing.

According to money market scholars familiar with the whole situation, this class used to repay loans regularly but in the present circumstances, the question of traceability has arisen. Under the current circumstances, it has become difficult for them to repay the loan, which has hampered their income.

According to financial experts, the bounce rate has doubled in recent times, which means that people are defaulting on loan repayments. After the lockdown, the rate has doubled. As a result, loan defaults are expected to increase by 30 to 40 per cent during the lockdown period.

The stagnation of logistical activities has led to a significant retreat in the commercial sector collection. In the previous problem, the proportion was 5 per cent, today it has risen to 20 per cent.

It may be mentioned here that the outstanding balance of credit cards has also increased after the 2008 crisis.