Lenders battle stress in unsecured loan books
mumbai, July 29 -- The cracks in India's unsecured loan market deepened in the June quarter, with defaults now spreading beyond traditional segments. Lenders grappling with borrowers failing to repay collateral-free loans saw the situation worsen in the last three months, as new categories like small business loans and financing for commercial vehicle purchases increasingly show signs of stress.
Bad debt rose in microfinance, retail commercial vehicle loans, MSME (micro, small, and medium enterprises) loans, personal loans and credit card, latest analysts' calls of banks and non-banking financial companies showed.
Add to that the seasonal impact of slippages in farm loans, and most lenders had to set aside larger amounts for potential loan ...
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