New loans may become harder to get as lenders turn cautious in lockdown

Be prepared for lower loan eligibility and risk-based pricing

As the country grapples with the Covid-19 pandemic, it is clear that this crisis will not end anytime soon, at least not for the next few months. It will have a deep impact on the economy and almost all industries. Lending is among the sectors that have been hit the hardest. It has come almost to a standstill since the last week of March due to a couple of significant limitations.

Lenders caught off-guard:

The lending industry, including large banks and non-banking financial companies (NBFCs), was largely underprepared to tackle a situation where there would be restrictions on physical movement.