Equifax Credit Information Services reports further rise of Delinquency Rates in Commercial Vehicle Loans by 33%
Equifax Credit Information Services Pvt. Ltd. (ECIS) today reported that the delinquency rate, a key measure of the quality of outstanding loans used by banks and non-banking financial companies (NBFCs), continues to be on an upward trend for commercial vehicle loans in the second half of 2013.
According to the latest update of the data, delinquencies by number of accounts that were more than 90 days outstanding have further increased by 33%, from ~3% to around 4% of accounts from June 2013 to January 2014.
Last year, ECIS reported that delinquencies by number of accounts that were more than 90 days outstanding had increased by 20%, from ~2.5% to around 3% of accounts from June 2012 to December 2013.
“Given the continued rise in delinquencies of commercial vehicle loans, it is becoming more and more important to focus on collection strategies and bringing down the delinquency rates. We are working with our customers to help them take timely action in this area of their business by customizing our products to meet their needs.” said Sanjay Patel Managing Director & CEO,ECIS.
ECIS’s members have benefitted from using products like Portfolio Review and Alerts which have helped them monitor the repayment patterns on their existing loans. These solutions coupled with customized analytics have proven to be powerful tools to monitor their portfolio of accounts and take appropriate and timely action on them.
This has been vindicated by users of the Equifax Market Monitor Report. In a statement, the Executive Vice President of the Relationship Banking Group in the Commercial Banking team of Kotak Mahindra Bank, Mr Ajit Kumar said, “We have used the Market Monitor report on Commercial vehicles from ECIS and have found it useful in aligning our strategies with what is happening in the market in these volatile times. This report has helped us take more informed and segmented decisions at a geography level.”