Auto loan delinquencies to stay elevated for 3-6 months in India: Moody's

While economic conditions have improved, this year's virus outbreak has eroded borrowers' financial reserves, according to Moody's

Auto loan delinquencies are expected to stay elevated for three to six months in India despite the pick up in economic activity after easing of curbs imposed to contain the spread of the Coronavirus (Covid-19) pandemic.

While economic conditions have improved, this year’s virus outbreak has eroded borrowers’ financial reserves, according to rating agency Moody's.

Moody's said that over the next three to six months, it expects delinquency rates to stay elevated at around current levels as many borrowers continue to deal with the pandemic's economic after-effects. Fuel costs are also high, adding to pressures on borrowers.

Delinquency rates will stabilise at high