Small towns rising to occasion
The Credit Bureau has noted a significant shift in the borrower's behaviour pattern post-COVID-19.
A higher number of credit applications are coming from tier-2 and tier-3 cities. These loans are smaller in nature, and the share of millennials has increased in the retail loans. Usage of technology platforms is also rising with a high number of loan applications coming online.
The rise of new fintech startups and banks are also increasingly putting preference on digitization. It has helped lenders to increase penetration and engage with new customers. Millennial participation is also increasing as the report pointed out that ~49% of the first-time borrowers are below 30.
G7's Vaccine Commitment
The United Kingdom, ahead of the G7 meeting, has committed to donating the COVID-19 vaccines to the world. The group could pledge up to 100 crore doses during the course of the meeting.
Meetings between the G7 nations are scheduled on 12 and 13 June in the UK. Australia and South Korea are the two other special invitees for this year’s G-7 Summit.
G7's commitment to vaccines will be a crucial step. It will be the first time that developed economies would step up together and commit to ending the pandemic. G7 comprises the world's wealthiest democracies - the US, UK, Canada, France, Germany, Italy, and Japan.
Stimulus Extension on Cards
The central government is likely to extend the scope of the COVID-related relief program. And include more businesses and sectors hit by the pandemic.
With many states relaxing the restrictions, business activities are trying to return to normalcy. Based on the requirements, more measures could be announced post consultation with the states.
So far, the government has given extensive focus to the MSMEs as well as the other sectors facing financial crunch. It includes travel & tourism, aviation, and leisure. The RBI's ECLG Scheme is also directed towards supporting the stressed sectors as well as building the health infrastructure in the country.