This Article is From Apr 02, 2014

Commercial vehicle bad loans soar 33% in H2 of 2013: Equifax

Commercial vehicle bad loans soar 33% in H2 of 2013: Equifax

Credit information bureau Equifax Credit Information Services today said the delinquency rate for commercial vehicle loans continued to remain high in the second half of 2013, jumping a full 33 per cent during the period.

Delinquency rate is a key measure of the quality of outstanding loans of banks and other non-banking lenders.

"Delinquencies by number of accounts have further increased by 33 per cent, from around 3 per cent to around four per cent of accounts from June 2013 to January 2014," Equifax said in a statement.

Last year, delinquencies by number of accounts had increased by 20 per cent, from around 2.5 per cent to around 3 per cent of accounts from June 2012 to December 2013, it added.

"Given the continued rise in delinquencies of commercial vehicle loans, it is important to focus on collection strategies and bringing down the delinquency rates," its managing director and chief executive Sanjay Patel said.

Equifax is a joint venture between the US-based Equifax Inc and seven financial institutions- SBI, BoB, BoI, Kotak Mahindra  Prime, Religare Finvest, Sundaram Finance and Union Bank.