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Below the Quote on the RBI Monetary Policy by Ananth Shroff, Founder & CEO, DPDzero

"Rate hike implies directly impacting the borrowers either in EMI value or tenure. This drifts the decision-making of a borrower to indulge in credit. However, the real impact of this rate hike will be seen not in the first EMI bill, but in how it reshapes household credit decisions over the coming months. While 25 bps may appear modest, for borrowers with tight monthly cash flows, a higher EMI or a longer repayment period can gradually put pressure on their ability to stay current.

For lenders, this makes early signals in repayment behaviour much more important. A missed payment or a change in payment pattern does not always mean a borrower has become a bad credit risk; it could simply indicate a temporary affordability issue. The opportunity is to identify that change early, understand what is driving it and respond before it turns into deeper delinquency.

This is where collections has to move beyond a volume game. Calling a borrower more often does not necessarily improve recovery. What matters is knowing who needs intervention, when to reach out, and whether the right response is a reminder, a different payment window, a more personalised conversation, or human intervention.

As borrowing costs rise, lenders that bring more intelligence and context into collections will be better placed to protect portfolio quality while making the recovery process more effective and less stressful for borrowers.”

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