Delhi, Mumbai struggle to pay EMIs due to income loss in pandemic

Delhi-NCR was the most impacted city in India in terms of loss of income and loan repayment capacity due to the coronavirus pandemic, a consumer insights report has revealed.

In national capital region, 70% of resident participants reported a negative impact on their income.

The survey by, a digital marketplace for lending products, covered over 8,500 of its consumers in the age group of 24 to 57 from over 35 cities. Respondents with a debt of Rs 1 lakh or more took part in the survey, titled “Dealing with Debt: How India Plans to Pay EMIs”.

Bengaluru became the second most impacted, with 65% of resident participants reporting a negative impact on income.

According to the survey report, over 86% of the self-employed customers reported a loss in income due to COVID-led restrictions.

On the other hand, there was lesser but still significant impact on salaried customers. 56% of salary earners said their salary has been impacted due to the pandemic and the resultant restrictions; 12% said they have lost their job.

In terms of the percentage of customers who had a complete loss of income, Mumbai was the worst placed, with 26% of respondents reporting income plummeting to nil.

Chennai was the least impacted city.(Only 9% of Chennai respondents said they have suffered 100% loss in income Vs 26% in Mumbai)

According to the survey, customers in their 50s were more financially stable than younger age groups. They had the least proportion of moratorium takers and had the best repayment capacity, despite having higher EMI obligation.