Massive increase in the amount of default in microfinance loans

-

MUMBAI: The second wave of Corona has led to a massive increase in the amount of defaults in the country's microfinance loans. An increase in loan defaults could force some microfinance companies to close, a report said.

With the outbreak of the second wave of Corona, loans that have been overdue in the microfinance sector for more than 30 days are expected to reach 15 to 18 per cent of the total loans, the report said.

Generally, microfinance provides money to those who do not have a bank account. Overdue loans ranged from 7% to 8% in March. After the demonetisation decision by the Indian government, the default rate in March 2016 was more than 11 per cent.

The risk of default is higher against loans taken in 2015 and early 2020. These loans account for 40 to 5 per cent of the creditors' book books.

Some of the measures taken by the government have only benefited large financial institutions, but small lenders are still struggling. The business of small financial institutions has been severely affected and the recovery of their loans has been sluggish, putting their existence at risk, an analyst said.

Loan collection capacity, which was 9 per cent in March, has now been reduced to 20 per cent, which will add to the stress. The gross loan portfolio of India's microfinance lenders stood at Rs 3.50 trillion at the end of March 31.

If the third wave of Corona in the country does not remain serious, there is room for improvement in the sector, the analyst added.

Comments

Post a Comment

Popular posts from this blog

Covid-19 effect: Significant increase in demand for second hand cars in the country

-
Image
Mumbai, May 26, 2020, Tuesday As lockdowns are being phased out across the country, the use of private vehicles using public transport to reach their destinations is on the rise. The increasing use of private vehicles has also increased the demand for cars, especially secondhand cars. Demand for second-hand cars is unprecedented. Inquiries for second-hand cars have almost doubled during the lockdown period compared to the time before the lockdown, according to a survey of about 100 dealers and car buyers. Demand for used cars at dealers has been strong in the last few weeks, and is expected to grow as the lockdown eases. Consumers are increasingly interested in buying second-hand cars, especially smaller ones, due to lower income levels and health-related safety, said an organized second-hand car dealer. Inquiries for a particular vehicle, which used to be around 15 per cent before the lockdown, have now doubled to 5 per cent. Inquiries for new vehicles have fallen from 21 per cen...
Read more

Due to the ban, employment and economic activity declined by two to three percent

-
Image
New delhi date. October 7, 2019, Monday A new study has found that employment and economic activity have declined by two to three percent due to the ban. A similar situation has been observed in bank lending. The study found the decline to occur within two months of the notation announced on November 7. This is the first research on demineralization in which data on the effects of districts across India were collected. In addition to the districts, the effect of national level was also studied. Previous studies only examined the national level effect of demonitization. Thus, a full estimate of the overall effect is not known. As a result of the shortage of cash arising out of the blockade, the country's economic activity fell by approximately 8 percent in November-December 2 In the October-December period, bank credit has seen an impact of around two per cent. Cash pulls have impacted demand for a short period. The study found that there was a strong link between money and pro...
Read more

Information about soymilk and casein products

-
Image
- Industrial guidance - Dhiru Parekh Soymilk: Soybeans are converted to high-quality protein. So that high quality drinks can be made which can be easily digested. There is no difference between soymilk and cow's milk. So the conservative industries of milk processing are now using this milk to make yogurt and ice cream. Consumers also cannot tell the difference between ice cream made from cow's milk and from soy milk. Also, the production capacity of soy milk can be increased than that of cow's milk. And the price can be cheaper. Soybeans mainly contain two types of enzymes that are inactivated in the soymilk process. Leukoxidase that catalyzes the oxidation of fatty acids. And enzymes like pepsin, trypepsin are included in it. Which helps in digesting protein. Soyamilk powder manufacturing process: This is an electric pre-heater system. which basically allows fluid to flow easily in a stationless tube under low-voltages. which absorbs the energy flowing through the Ja...
Read more