Salvage of Collaterals

Salvage of Collaterals

Collateral Salvage

If the Bank loans are not backed by any collaterals, Credit Bureaus now have come forward to help them in the cautious lending process.

  • It is observed that the loans without any collaterals in banks have now risen to more than a quarter in the recent three months ending September. Delinquencies are found to be the lowest (0.5%).
  • The combined Personal Loan figure of both Banks and Shadow banks rose to 15 million which accounted for a 26% increase over an year. These loans were small loans in the range of Rs. 1-5 lakhs and their tenures were less than 5 years.
  • Number of Credit card accounts which amounted to Rs. 36.9 million showed an increase of 32% than the previous quarter. Credit card accounts have less than one lakh per account.
  • The average balance per borrower is said to be Rs. 2.52 lakhs showing an increase of 7.7% over the previous year.
  • The serious delinquency rate is 0.52% which is less by one basis point over the last year.
  • The Delinquency rates of personal loans amongst other loans was the lowest and for property it was the highest which is 3%.
  • Auto loan segments have a Delinquency rate of 2.75% which is the second in the list.
  • It is necessary a common consumer must understand the importance of a timely payment of dues, since they form the major wing of the economy. Failure to make payment in time, obviously results in mounted overdues.  This section of the society and their ability to successfully manage their credits is very crucial for a growing economy.
  • Lenders have turned towards retail loans due to the following reasons:
  • There is slackness in the demand from Large Corporate Borrowers.
  • There is an overall concern about the loans turning bad resulting in a slow economic growth.

Serious Delinquency Rates:

  • Serious Delinquency rates are measured as the percentage of balances that are 90 or more days past the due date.





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