Retail loan recovery remains unaffected in the 3rd Wave of Covid

With fewer curbs and government mandated restrictions, the Indian Economy has ridden the third wave of the Covid Pandemic with less disruption. India Inc seems to have learnt it’s lessons well and is on its path to treading through this tumultuous path with considerable stability.

If we look at industry wise impact of the current wave of pandemic, it is seen that industries like Technology and FMCG are booming. Banking & Finance and Education sectors have been able to face this wave with better planning and infrastructure in place. Logistics and supply chains have also been able to maintain their prices and efficiency.

Real Estate is holding its own with lowered interest rates, increased government spending and retail interest maintaining its momentum.

Restaurants, hotels and the travel industry are facing some challenges led by reduced footfalls and travel plans being canceled in the past few months.

The outlook for economic growth for this quarter remains positive on most fronts. India’s major feat of achieving 150 Crore vaccinations has resulted in stable economic activity in Tier II and Tier III cities and rural areas.

Consequently, small and medium enterprises are able to sustain their growth trajectory. The robust levels reflected in the data on collections and repayments show minimal stress in liquidity. According to data from the National Automated Clearing House (NACH), cheque bounce rates in the current months have stayed stable. As per Indian Ratings, lenders have reported that the collection efficiency has consistently improved post second wave and is maintaining its levels.

The ensuing positive sentiment makes this an idle time for retail investors to widen their horizon and try new opportunities to grow their savings through P2P Loans. With steady growth slated for the Indian Economy, MSME loans and Small Retail loans is one segment offering higher returns at lower risk. Now is an opportune time for individuals to increase their investments, diversify portfolio and benefit from the compounding effect of earnings.

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