Borrowers defaulting on making EMI payments are claiming that the delays are caused due to delay in receiving salaries from their employers, while those in business blame it on the poor business for their default. These observations have come out from a survey conducted by CreditMate, a fintech company belonging to the Paytm Group.
According to a Hindu Business Line report, CreditMate surveyed over 2 lakh defaulters from across the country and has published the findings titled ‘The India Delinquency Report 2019’. The period covered for this survey is May to November 2019. The broad finding is that 54% defaulters on EMI payments, though they miss the pay by date, are still not non-performing assets (NPA), while the remaining 46% have not paid for over 90 days and therefore are categorized as NPAs.
The ratio of salaried defaulters to business owners is 36% to 29%. Some of the other reasons being attributed by those surveyed include medical emergencies (13%), loss of job (12%) and being out of the city or out of the country (10%).
CreditMate said in a statement regarding the findings that the economic slowdown being witnessed currently is the major reason for this extent of default among borrowers.
The survey also showed that men were responsible for more defaults than women. 82% of the defaulters were men, while only 18% were women.
CreditMate also studied the geographical background of the defaulters and found that the worst performers in terms of making repayments of loans availed were from states like Arunachal Pradesh, Haryana and Delhi. The ones faring well were from Goa. Cities such as Vadodara, Mumbai and Patna figured among the ones where borrowers were making payments within the stipulated time whereas the habitual defaulters appear to be from cities like Ludhiana, Chennai and Bhopal.