The rise in Bad Loans
The increasing bad loans is a big challenge for the banking industry. According to the banks or the financial institutions, there are debts that often come with high interest rates, which increase the costs of the banks and the customer. Bad loans have also made about 65% of the total loans compared to that of the previous years, which comprises the loans that were not appropriately paid for the sudden outbreak of Covid-19.
The types of loans that are generally available are home loans, car loans, education loans,
personal loans, and the other types of loans, which have become the reason for the bad loans as some of the percentages were unable to pay. The State bank of India is one of the pillars of the Indian banking industry and is governed by the central bank of India. To solve all the problems, it is advised that RBI needs to classify the non-performing assets to the central bank.
To safeguard the customer, the home loan interest rates, other types of interest of the processing and all the different types of the loans have been made with the variations to give relaxation to the customer for the pandemic time.
Even to safeguard the customers, other types of practices are being performed in the blanks for safety like online submission of home loan documents and the documents of the car loan, personal loan, and the other loan types.