Rising delinquencies, aggressive lending put retail credit at risk

The stress in parts of retail lending is leading to business opportunities for those associated with the ecosystem

“Despite housing being a potentially appreciating asset, delinquencies are inching up in certain pockets. Lenders are targeting the informal self-employed segment where delinquencies are higher,” says Mahesh Misra, leading you into a relatively little-known irritant which has the potential to balloon. The managing director (MD) and chief executive officer (CEO) of Indian Mortgage Guarantee Company – the country’s sole mortgage guarantee firm – identifies a key pain point: The reluctance to up the loan-to-value to more than 80 per cent even where permissible. It leads to customers sourcing personal loans to bring in their contribution to purchase a home (or