Delay in getting salaries in India is the most significant reason for the loan default. At the same time, people are not able to repay the loan because of the failure of a business. In a recent study, it has come to the fore exciting fact that the people of Odisha, Chhattisgarh, Bihar, and Gujarat are at the forefront while the people of Madhya Pradesh, Haryana, Delhi-NCR, and Tamil Nadu are laggards in this matter. The report also brings out exciting fact coming out that women's record in loan repayment cases is manifold better than men as 82% of the loans have been made by default men. Women are 11% faster than men, even in the case of arrear payment.
The outcomes of the survey have been released at a time when unemployment has reached the highest level of four decades, according to official data published a few months ago. With this, the pace of economic growth has come down to a lower level of more than six years, and banks are paying a lot of attention to retail loans due to a decrease in corporate loan demand.
"The current sluggishness has affected debt resurgence across the country," stated a report published on Monday by Paytm-backed financial technology company Creditmate. The report is based on an outline of two lakh loans of 40 lenders. This analysis has been done in 30 cities in the last six months. According to the report, the delay in getting salaries in 36% of the cases is delaying the people to repay the loan. While not running the business, there is a difficulty in repaying the loan in 29% of the cases.
The critical report says that 12% of the people who went to jobs made the loan default. On the other hand, 13% of the people could not repay the loan due to medical emergency, while 10% of the cases were due to migration. The record of Mumbai, Ahmedabad, and Surat is the best in terms of loan payments, while Delhi, Bengaluru, and Pune have the worst.
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