loan restructuring: 55% of borrowers want to request a loan restructuring: Survey
8,616 participants responded to the Paisabazaar.com survey who had overdue debt of over Rs 1 lakh in the 24-57 age group. Responses were recorded in 37 cities.
Here is a look at other survey results, Dealing with Debt – How India plans to pay off IMEs.
The survey found that 44% of salaried respondents said their salary had not been negatively affected, 30% said their salary had been cut by more than half from pre-Covid levels. 12 percent of salaried clients reported a total loss of wages due to job loss.
As for the self-employed, 86% said the pandemic had a negative impact on their income, 25% said their income had fallen to zero. Of the 14 percent of independent consumers who said their income was not negatively affected, the majority (over 90 percent) were independent professionals such as doctors and lawyers who had their own practices. .
Chennai had the least impact on income and reimbursement; NCR, Mumbai most affected
Delhi and the cities of the NCR were the most affected cities, with 70% of their resident participants reporting a negative impact on income. Of these, 16% of NCR customers also said their income fell to zero due to the pandemic disruption.
In terms of the percentage of clients who experienced a total loss of income, Mumbai was the worst placed with 26% of Mumbaikars reporting plummeting income.
Moratorium and restructuring of loans
About 56 percent of survey respondents said they invoked the moratorium on their outstanding loans and / or credit cards during this period. However, to be on the safe side, 23% of those who resorted to the moratorium also said they had not experienced any disruption to their income during this period.
“One of the main conclusions of the survey is that while 53% of salaried professionals took advantage of the moratorium, more than a third (34%) of them suffered no impact on their salaries. One of the main reasons was the fear of losing their job. or a significant drop in wages, and as a result, many have decided to save more for an uncertain future, by taking the moratorium, ”the investigation revealed.
Although 44% of customers did not take the moratorium, but a much larger number – 55% – said they could afford to pay their EMI loans and credit card bills every month. “Indeed, among consumers who had opted for the moratorium, 40% of them state that they now have the repayment capacity to meet all of their monthly EMI obligations.
Interestingly, 51 percent of clients who have a monthly EMI obligation of Rs 25,000 or less have taken on the moratorium. Therefore, it was not surprising that more than 2 in 3 (68%) clients with an EMI above Rs 1 lakh opted for the moratorium.
On the other hand, 22% of consumers whose incomes fell to zero due to the pandemic, have not opted for the moratorium.
Over a large portion of the clients who participated in the survey said they would like to approach their lender about a loan restructuring plan. About 55% of clients responded that they would ask their lender to restructure their loan in some form or another in order to provide relief.
Older borrowers are more financially stable
The investigation showed that the coronavirus pandemic has disrupted the incomes of all age groups, from young first-time workers to senior and experienced professionals who are close to retirement age.
While the impact on income was broadly uniform across all age groups, both among salaried clients and the self-employed, survey data showed that there were fewer takers for the moratorium. among those over 50 (48% vs. over 55% for all other younger age groups).