: Despite no impact on income, many Indian borrowers chose to halt loan repayments #IndiaNEWS In March, when the Covid-19 pandemic first picked pace in India, many Indians lept for a relief measure in

Despite no impact on income, many Indian borrowers chose to halt loan repayments #IndiaNEWS
In March, when the Covid-19 pandemic first picked pace in India, many Indians lept for a relief measure in anticipation of the worse.Around 23% of Indians who opted for stopping their loan repayment when the central bank launched a moratorium scheme in March had not witnessed any pay cuts, according to a survey (pdf) conducted by digital lending marketplace Paisabazaar.com. This may have been “a cautious approach…to preserve funds for an uncertain future or plain lack of awareness about the accrual of interest cost on availing loan moratorium facility,??? the survey observed.The moratorium option was part of a Covid-19 relief package aimed at reducing the financial burden on Indian households in tough economic times.The survey included responses from 8,600 borrowers aged between 24 and 57 years, across 37 Indian cities. Of these respondents, around 56% said that they had availed moratorium. The findings of the survey corroborate with the data revealed by banks.After an initial uptick, the number of loans under moratorium has dropped sharply in the past three months for some of the banks. The latest set of data shows that more borrowers have resumed payment of their loan instalments. Analysts at Morgan Stanley (Research) are bullish especially about large private banks, stating that a large part...Read more

Stock Market NEWS Best intraday tips Intraday Stocks below 100