to tide over this crisis nonbank lenders have written to the reserve bank of india and the finance ministry to announce a moratorium on payment of emis for at least three months mumbai nonbank lenders are staring at a demand collapse of more than 50 as there are fewer takers for consumption automobile and msme loans because of the coronavirus scarethis after they saw normal business activity resuming in the ongoing fourth quarter with only a 14 yearoveryear decline in credit in the december quarter the least after being squeezed for liquidity since the ilfs crisisfifty per cent demand fall is also a conservative estimate it could be much more than that nbfc activity is totally at a standstill said raman agarwal the cochairman of nbfc industry body finance industry development council we are just focusing on collections that is also difficult because of the movement restrictions so employees are just checking in on customers on phone disbursements have totally stopped advt nbfcs which have been struggling for the most part of last year were seeing some signs of a revival after the fall in credit demand was much smaller in the december quarter this fall was more than 30 in the september and june periods consumer auto education and gold loans were all showing signs of recovery but may now return to the june level with disbursements coming to a halta chain reaction has already started hotels are shut in turn goods movement related to that has stopped taxis are not plying warehouses are shut manufacturing activity has stopped we will see a domino effect of this on our credit quality the ceo of a midsize nbfc said and experience with other countries shows that this lockdown will most likely extend my fear is this is a double whammy which a lot of us may not be able to surviveto tide over this crisis nonbank lenders have written to the reserve bank of india and the finance ministry to announce a moratorium on payment of emis for at least three months they have also sought a onetime restructuring of all regular accounts that are today not in default without any provisioning hit an extension of the badloan recognition period to six months from the current three has also been requestedmost states and union territories have imposed a complete lockdown of these maharashtra and punjab were put under statewide curfews due to the lockdown nbfcs feel their collections would be impacted as there had been a slowdown in commerce resulting in low capacity utilisation of trucks machinery and other equipment of msmes and contractors advt lockup of commercial spaces like malls restaurants and restriction on number of workers onsite by several municipalities and local governments are also seriously affecting business cash flows read alsoon lending by banks to nbfc hfcs to be part of priority sector in fy21 rbistressed nbfc sector relying more on banks for borrowings care ratings by saloni shukla et bureau published on mar