Loan Delinquencies Rise as Downturn Pinches
08 Nov 2013
Edition: Page 24
The Delinquency Rate, a key measure of the quality of outstanding
loans used by banks and non-banking financial companies and one of the
principle indicators of the health of the commercial vehicles (CV)
sector, has increased in the past six months.
According to credit information and analytics company Equifax Credit
Information Services, delinquencies by number of CV loan accounts that
are more than 30 days outstanding have increased by about 18 percent,
from about 11 percent to around 13 percent of the loan accounts in the
first half of 2013. Besides, delinquencies by number of CV loan
accounts that are more than 90 days outstanding have increased by 20
percent, from about 2.5 percent to around 3 percent of the accounts.
Equifax India says lenders would need to check for any negative
changes in the payment history of the existing loans.