Mumbai, December 9, 2019: The current economic slowdown is affecting debt recovery across the country, a recent survey by CreditMate, a new-age digital debt-collection platform, has revealed. The findings of the report could have potential implications for lending and debt recovery in India.
The ‘India Delinquency Report’ — based on data collected from 2 lakh borrowers across all states — found that delay in salaries (36%) and business downturn (29%) were the two main reasons for debt defaults. This was followed by medical emergency (13%), loss of job (12%) and out of city or country (10%).
Apart from debt default, the CreditMate survey also included other parameters such as the demographics of the debtors and borrowers, types of loans and sector-wise debtors, demand and payment patterns among male and female borrowers, transaction patterns, most-preferred modes of collection, and behavioural patterns of the defaulters. The loan categories comprised two-wheeler loans, personal loans, SME loans, student loans, medical loans and digital loans.
The study also revealed interesting facts about debt repayment. For example, male borrowers accounted for the maximum late payments at 82%, followed by their female counterparts at 18%. Women (11%) were also better payers than men.
The young and tech-savvy generation comprising both salaried and professionals was comfortable with online payments as opposed to cash payments. About 79% of the respondents used online modes of payments, while 21% of defaulters made cash transactions. According to the survey, just under 40% used debit cards to make payments, followed by e-wallets. One in five payment transactions were done via UPI.
In terms of the geography of borrowers and debtors, Goa topped the states for the best payment rate, while Arunachal Pradesh, Haryana and Delhi were the worst performers. Among the cities, Vadodara, Mumbai and Patna were the top performers, while Ludhiana, Chennai and Bhopal accounted for the worst payments.
In other findings, Friday and Thursday were the preferred days for making payments, while Saturday appeared to be the least favourite day of the week for repayments.
CreditMate Founder and CEO Jonathan Bill said, “The India Delinquency Report gives us a keen insight into loan repayment behavioural patterns among both male and female borrowers, the preferred transaction modes, and reasons for debt defaults. The study will help us service both large and small lenders better and more efficiently, enabling them to get the best out of their loan portfolios. The findings will also enable us to make it even easier for lenders to collect debts across geographies and at any stage of delinquency by routing all communication with borrowers — such as calls, messages and emails — through our collections platform.”
Besides, CreditMate also offers borrowers hassle-free debt resolution options. All data and information flowing through its collections platform is secure and backed by a big four data security audit.