Auto Finance Firms Brace for IT Layoffs’ Impact

Haydarabad: As the layoffs continue to influence employees throughout the country, automobile financial companies are concerned about the future. Although they have not yet felt the effect of layoffs, many loan managers say they are preparing to increase their payment defaults.

Many multinational and indigenous companies have recently announced big business deductions and left tens of thousands of people without a stable income. This has created financial stress for many households, especially for those with loans existing for houses, cars and two -wheeled devices.

Sridhar Rao, a credit officer with a large bank in the city, said, “We haven’t seen a big increase in default yet, but people are worried. They are looking for us and want loans to meet the EMIs.”

“A debtor working with a large company was recently dismissed from their companies. They were worried that they could define for payment for one or two months before entering another job. Although the effect has not yet been hit, we assume that this would be realized soon.”

Most vehicle loans are taken for a period of task of three to five years, and even a few payments can lead to the re -evaluation of their vehicles. This adds additional stress to the borrowers.

Finance companies are now reviewing their approval processes and closely monitoring customers in high -risk sectors. In a two -wheeled showroom, Kiran, the finance manager, said, “The company is looking at the increasing examination for private employees. If further dismissed, we must be cautious with new loans.”