One of the key benefits resulted from demonetization that we were able to identify the quality of customers not having an instance of single day delay in payment of EMI even after facing tough duration of demonetization.
To mitigate the situation of demonetization and to know the actual requirement of customers, ta team of DCL made a market survey. Customers having sufficient amount of loan with less EMI were more regular than customers with the higher amount of EMI. Because less EMI matches with their cash flow, as they need the loan for income generating activities only.
After recognizing the situation, DCL restructured its products. Products were designed in the way that customer becomes able to get sufficient amount of loan from DCL in one time with less EMI (matching with his cash flow) with higher tenure. Rational behind higher tenure was DCL don’t want to structure an EMI that causes clients to compromise on the quality of life to meet the repayment commitment.
EFFECT OF ABOVE: Due to an increase in average loan size, DCL is able to reduce per borrower cost day by day. DCL acknowledged the significant growth of 455% (PY 171.5%) in profit after tax along with a moderate increment in operating cost of 33.03% (PY 92%).