Loan delinquencies of non-banking finance companies (NBFCs) could dart up 50-250 basis points (bps) this fiscal, depending on the segment of operation, because of vulnerability in borrower cash flows, according to credit rating agency Crisil.

The agency said this is a base-case estimate without factoring in loan restructuring and the Covid-19 affliction curve.

As per this estimate, as of March-end 2021, the projected delinquency in the home loan segment is 1.7-1.9 per cent (against estimated 1.1-1.3 per cent as at March-end 2020); vehicle finance, including construction equipment (8.0-8.5 per cent against 6.0-6.5 per cent); loans against property (6.0-6.5 per cent against 3.5-4.0 per cent); unsecured SME loans (6.0-6.5 per cent against 4.0-4.5 per cent); and unsecured loans – consumer durable and personal loans (4.0-4.5 per cent against 2.0-2.5 per cent).

Covid-19 afflictions

Crisil observed that the rapid increase in Covid-19 afflictions and intermittent lockdowns will increase asset quality challenges of

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