The report by CRIF Highmark provides insights into the portfolio at risk across various buckets. It ranges from 0.3% to 2.1% as of June 2023. The report also highlights that delinquency has improved across all individual MSME loans, except for construction equipment loans, where payments are due between 181-360 days. These findings assume significance in understanding the risk and performance of different loan segments.
Policy researchers suggest using debt-to-income (DTI) limits and loan-to-value (LTV) ratios as effective macroprudential tools for retail loans. A study by RBI economists highlights the importance of monitoring the retail segment for stress build-up. The sustainability of retail credit flows depends on the health of households, banks, and non-bank financial corporations. Policymakers should consider using structural prudential tools like debt-service ratio and DTI limits. Additionally, credit underwriting and account aggregators can strengthen lender resilience and improve credit monitoring.
A checklist of essential documents is crucial for a smooth education loan application process, ensuring timely submission and minimising the risk of delays or rejections.
India Business News: Lenders determine loan amounts based on credit scores, multiplier method, DTI ratio, EMI/NMI ratio, and LTV ratio. Borrowers with good credit may qual