New Delhi: Due to poor economic conditions, the employment crisis in the country is increasing. The effect of this unemployment was that people are not able to repay the loan from the bank. With unemployment rising, people are no longer paying their loan installments, which may have an impact in the long run. According to a report, people often take home, auto, education and personal loans from banks. In addition, a lot of people now keep credit cards.

Banks are expected to increase retail loan NPAs due to non-payment of installments. State Bank of India's retail loan NPA stood at 4.8 percent in June, up from 5.3 percent in July. This has delayed the processing of loans by banks even further. According to FitchRatings, the non-paying retail loan installments will put pressure on banks.

Due to the recession, people are being sacked from many sectors. They do not have the money to repay those who had taken any loan from banks during their jobs. The non-payment of retail loans is also likely to affect the balance sheet of banks and financial companies. People have money left to meet their needs. Most of the people working in key sectors like autos, real estate, FMCG are now running the same. They are borrowing money from their friends and relatives to meet children's fees, house rent, and other main needs.

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