NBFCs stop lending on fear of rising defaults Top Searches NBFCs stop lending on fear of rising defaults Mamtha Asokan / TNN / Updated: May 24, 2021, 11:17 IST FacebookTwitterLinkedinEMail CHENNAI: Hit with a drop in instalment collections due to the Covid-induced lockdowns across the country, non-bank lenders are slowing fresh disbursements and even halting them for unsecured loans. From an average default rate in collection efficiency at 2-3% in pre-Covid times, non-banking finance companies (NBFCs) are now seeing 6-8% of borrowers missing their payment schedules during the second wave of the pandemic. IIFL Finance has halted fresh disbursements for unsecured loans for micro-businesses & personal loans.