New Delhi, Jun 10 (PTI) Non-banking finance company Finway on Wednesday said that 45 per cent of its borrowers have opted for moratorium due to the crisis induced by the coronavirus pandemic.
This behaviour is more distinctly noticed in the northern region, in places like Delhi-NCR, the company said.
The mindset of borrowers has changed quite significantly with regards to loan repayment as well as investments – especially since the RBI announced a three-month extension of the moratorium on loans until August 31, 2020, it said in a release.
Most of the borrowers that have opted for moratorium belong to the middle-age group and they are either salaried individuals or business entrepreneurs. Depending upon the nature and scale of the lending institution, the outstanding loans that are coming under moratorium are ranging from 30-70 per cent, Finway said.
The company has also observed a sharp fall in the demand for loans, it added.
Finway said customers are being reluctant in taking loans as well and risks, and have cut down costs drastically due to reasons such as pay cuts and layoffs.
'There are cases now coming to us, where the customers just want a lower ROI; they don't want any additional amount. Everybody is playing safe with regards to their borrowing and spending habits,' said Rachit Chawla, Founder and CEO, Finway.
They are unable to pay EMIs and are under tremendous pressure, but in no circumstances they are looking to raise more debt as they already feel the burden, he said. On the contrary, they are liquidating their assets to become debt free, he added. PTI KPM MR