The finance ministry of india, Bank

Non-banking financial company (NBFC) Finway on Wednesday expressed concern regarding current loan repayments in the country and mindset of borrowers.It said the borrowers' mindset has changed quite significantly with regards to loan repayment as well as investments -- especially since the Reserve Bank of India (RBI) announced a three-month extension of the moratorium on loans till August 31.Finway said that 45 per cent of all its borrowers have applied for a moratorium pan-India. This behaviour is more distinctly noticed in the northern region that is in places like Delhi-NCR.Most borrowers that have opted for moratorium belong to the middle age group -- which means 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 to 70 per cent.Not only has there been an increase in the number of borrowers asking for the moratorium, Finway has also observed a sharp fall in the demand for loans. The customers are being reluctant in taking loans or taking any risk in their business.The only thing in their minds right now is to pay the loans back as quickly as possible. They are cutting down the costs drastically, and all they are doing is restructuring their loans. Most of the NBFCs, in fact, are facing such situations with regard to customers.The customers are already facing a lot of problems due to pay cuts and layoffs right now, and a majority of them have agreed to not spend any money on the non-essential items for the next few months till the situation gets a little better.Rachit Chawla, Founder and CEO of Finway, said the Covid-19 pandemic that began as a health emergency has now evolved into a full-blown economic crisis. "There is not one sector in the country that has been untouched by this menace."Chawla said the economic situation has been grim and financial uncertainty has sneaked up on salaried individuals as well as borrowers. "Consequently, people who are under the pressure of repayment of loans are going through a very difficult crisis," he said in a statement.( With inputs from ANI )

The Finance Ministry Of IndiaFOLLOW

The finance ministry of india, Latest News

The Reserve Bank on Wednesday proposed to increase the minimum Net Owned Fund size of Housing Finance Companies (HFCs). ... ...

The Supreme Court on Wednesday pulled up the Central government and asked it to step up and take a stand over the issue related to charging interest on EMIs during the six month moratorium period granted in view of COVID-19 pandemic. ...

Chief Minister K Chandrashekhar Rao has appreciated farmers in the State for agreeing to go in for the regulated cultivation as suggested by the government and for getting ready to sow the seeds accordingly. ...

Indian Railways has resumed select local train services in Mumbai for people providing essential services, but bank employees are ... ...

In a shocking incident, a woman was seen taking her 120-year-old mother to the bank in Naupada district of Odisha to withdraw the latter's pension after the bank allegedly demanded physical verification of the account holder. ...

Reserve Bank of India (RBI) has constituted an Internal Working Group to review extant guidelines on ownership and corporate structure for Indian private sector banks, the apex bank said. ...

Reserve Bank of India Governor Shaktikanta Das on Thursday held a meeting with chiefs of credit rating agencies to discuss the macroeconomic situation and outlook on various sectors of the economy. ...

Non-banking financial company (NBFC) Finway on Wednesday expressed concern regarding current loan repayments in the country and mindset of borrowers. ...