1 min read.Updated: 11 Jun 2021, 06:55 PM ISTLivemint, Edited By Staff Writer ( with inputs from PTI )
The fintech firms said that paybacks for overdue loans were impacted by up to 20% a
The survey said the situation is better than last year, and most of the players expected the business to normalise by July 2021
Several financial technology lenders have witnessed a decline in loan collection in the country during the second Covid-19 pandemic wave.
The fintech firms said that paybacks for overdue loans were impacted by up to 20% as agents could not go into the field, the survey conducted by Fintech Association for Consumer Empowerment (FACE) added.
Half of the members have said more than 80% of their staff is working remotely.
Besides, there was also an impact on repayment abilities at borrowers' end because of genuine distress and medical emergencies.
The RBI announcement on loan restructuring has created confusion within the customer segment, the survey by a lobby group of the new-age lenders said. 56% of the firms said they expect to provide restructuring to less than 10% of the borrowers.
The survey was conducted on 100 fintech firms in which 69% of them have witnessed 10-20% decline in loan collection which are overdue for 31-90 days.
However, the requests for delayed payment are significantly lower than the first wave, the survey said, adding that 87.5% of the lenders reported lesser requests for delayed payments.
“This indicates that the phenomenon is temporary and should not have a long-term impact on asset quality," it noted.
The survey said the situation is better than last year, and most of the players expected the business to normalise by July 2021, while some aspects of the businesses are likely to be impacted for a longer period.
Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.
Never miss a story! Stay connected and informed with Mint.
our App Now!!