Loan disbursement continues to fall post demonetisation, says BFIL
Non-banking micro-finance company, Bharat Financial Inclusion Limited (BFIL), on Tuesday unveiled data that showed post demonetisation loan disbursement has witnessed a steady decline.
The company said that the disbursements as a percentage of collections witnessed a steady decline in rates after November 11.
During November 14-18, loans amounting to Rs 170 crore were disbursed while disbursements as a percentage of collection was at 75%. However, from December 12 to December 15 loans disbursed were to the tune of Rs 156 crore while its corresponding percentage of collections dropped to 67%.
The company data showed that a total of Rs 970 crore in loans have been disbursed post the demonetisation announcement on November 8.
Image Source: BFIL report
“99% Loans for Income generating activities and most of our customers undertake economic activities, which cater to non-discretionary spending in the local milieu (Livestock (Eg:Milk) -33%, Grocery -10%, Eateries -4% etc.),” the company said.
The company said that it had also seen a ‘four-week lag’ in terms of debt collection efficiency during the demonetisation phase.
Collection efficiency by the company remained at 97.7% during this period.
Image Source: BFIL report
“We continue to disburse in centers, only if the collection efficiency of that center is 100%,” the company added.
The company further said that disbursement of loans were conducted by recycling cash collections, due to the restrictions on current account withdrawals of up to Rs 50,000 per week.
“Disbursement to customer bank accounts are also limited due to ATM withdrawal limits and limited availability of cash at bank branches,” the company added.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Power of Compounding: How many years will it take to reach Rs 3 crore corpus if your monthly SIP is Rs 4,000, Rs 5,000, or Rs 6,000
IRCTC Dividend 2024: Railway PSU announces 200% interim dividend - Check record date and other details
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
Reduce Home Loan EMI vs Reduce Tenure: Rs 75 lakh, 25-year loan; which option can save Rs 25 lakh and 64 months and how? Know here
Top 7 Large and Mid Cap Mutual Funds with Best SIP Returns in 5 Years: No. 1 fund has turned Rs 15,000 monthly SIP investment into Rs 20,54,384; know about others
New Year Pick by Anil Singhvi: This smallcap stock can offer up to 75% return in long term - Check targets
PSU Oil Stocks: Here's what brokerage suggests on these 2 largecap, 1 midcap scrips - Buy, Sell or Hold?
01:46 PM IST