Loan Delinquencies Rise as Downturn Pinches

The delinquency rate, a key measure of the quality of outstanding loans used by banks and non-banking financial companies and one of the principle indicators of the health of the commercial vehicles (CV) sector, has increased in the past six months.
 
According to credit information and analytics company Equifax Credit Information Services, delinquencies by number of CV loan accounts that are more than 30 days outstanding have increased by about 18 percent, from about 11 percent to around 13 percent of the loan accounts in the first half of 2013. Besides, delinquencies by number of CV loan accounts that are more than 90 days outstanding have increased by 20 percent, from about 2.5 percent to around 3 percent of the accounts. Equifax India says lenders would need to check for any negative changes in the payment history of the existing loans.