Small loan disbursements see 11.5% annual drop in third quarter – The New Indian Express

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Through Express news service

BENGALURU: Small loans saw an 11.5% year-on-year decline in the third quarter (October-December 2020) in terms of value, although total disbursements increased by 80% from the previous quarter , according to a CRIF High Score report.

The report also states that the impact of the pandemic on households resulted in high defaults after the end of the loan moratorium. The eastern states of West Bengal and Assam, he noted, had been hit by the double impact of the pandemic and natural disasters such as flooding and cyclones, these regions recorded the highest repayment stress during the quarter.

Meanwhile, rural loan disbursements amounted to Rs 32,884 crore compared to Rs 36,235 crore in the third quarter of the previous year. For urban areas, small loan disbursements amounted to Rs 23,246 crore in the third quarter, compared to Rs 27,160 crore the previous year.

In terms of volume however, third quarter disbursements nearly doubled to 175 lakh. The share of loan disbursements less than or equal to Rs 10,000 recorded an increase of 11% compared to the previous quarter. This increase, the report notes, is largely attributable to the restructuring of loans offered by lenders and new small loans to eligible borrowers in the form of secured emergency lines of credit.

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