Salary delays, biz downturns at fault for loan defaults

Mumbai: Salary delays are the biggest reason for loan defaults by individual borrowers, followed by business downturns, says a survey.

The survey comes months after official data showed that unemployment is at a four-decade high, the pace of economic growth slipping to a six-year low, and banks increasingly rely on retail loans to expand books as corporate credit demand is a far cry.

"The current slowdown is affecting debt recovery across the country," Paytm-backed financial technology firm Creditmate said in a report on Monday.