Factors causing stress
The primary cause of stress among borrowers is over-leverage. "A person's Equated Monthly Instalments (EMIs) should ideally not exceed 50 per cent of their net take-home income. If this happens, they will not be left with enough money to meet essential expenses," says Arun Ramamurthy, director, Andromeda Sales and Distribution, and an expert in digital lending.
Many people are living beyond their means. "The YOLO (you only live once) philosophy has gained prominence while financial prudence has taken a back seat," says Anshuman Panwar, co-founder, Creditas Solutions, a digital debt collection agency.
"Layoffs, especially in sectors like information technology and startups, are making it difficult for borrowers to pay EMIs on time," says Satish Mehta, founder, Athena CredXpert, which offers credit counselling.
This story is from the October 23, 2024 edition of Business Standard.
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This story is from the October 23, 2024 edition of Business Standard.
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