The road ahead- No where to go???

With the economic slowdown in full throttle, defaults on commercial vehicle loans are on the rise. This will not only hit the fourth quarter results of non-banking finance companies (NBFCs) but also affect their ratings.

To avoid further defaults, NBFCs have tightened their purses — some are even demanding down payment of 35 per cent.

With no sign of the recession ending, and with defaults rising, NBFCs are stuck between a rock and a hard place. But some firms are banking on the rural economy. “There was a bumper crop in tier-III cities and was large enough to carry cargo on state highways,” believes some firms.