Use of Force by Banks to Recover Loans

Banks these days are selling loans like vegetables to feed the profit hungry shareholders and then using all kind of tactics like sending goons to recover the money. This is not acceptable to any society. India is a country where nearly 40% are living in extreme poverty and other 25% are just above this poverty line...They will accept any kind of loan without even considering its terms and conditions. My point is the banks must ensure the repayment capacity without exception before approving loans. This is also critical to the reputation of not just Banks but the whole financial system

Use of physical force as a means of recovering loans by banks should be strictly dealt with as it is unconstitutional and literally a case of white collared hooliganism.

Instead a bank should do a thorough background check of the borrower so that the risk of default is minimized.

Also the government should encourage PSU banks to offer loans on cheaper interest rates and flexible EMIs so that it is easier for an individual to repay any loans.

Stringent laws should be enacted against people who default deliberately so that banks can have a upper hand when dealing with such people.

Through the.

All discussions in my opinion bank before going to give a loan ask a security for that person or ask a surety. Maybe He does not have any property but he knows some person to sign as a surety.

That is very easy to both bank and customer. Because bank rule is same as to everyone.

Bank give a loan from customers money so bank have a need to repay the customers money back and bank can't say the reason of loanly people late to give the customers money. For that bank have a permission to repay the loan by violent activities when at a critical condition.

I accept the fact that there is some amount of fault with the bank but people ??? are they very correct in what they are doing ?? If you know that you will not be able to pay the amount why do you have to get the loan . In cases where something backfires unexpectedly I can understand but there are people who deliberately get loans and avoid paying them back and the bank has to take some step as money is in stake . So the fault lies with both I'll say . The bank should act responsibly while giving loans and so should citizens applyinng for loans.

Usha Limited with an outstanding of Rs 8,619 core.

LLOYD STEELS Renamed as Uttam Value Steel with an outstanding of Rs 9,478 crore.

HINDUSTAN CABLES with an outstanding of Rs 3,929 crore.

ZOOM DEVELOPERS with an outstanding of Rs 3843 crore.

PRAKASH INDUSTRIES with an outstanding of Rs 3,665 crore.

CRANES SOFTWARE INTERNATIONAL with an outstanding of Rs 3580 crore.

KINGFISHER AIRLINES with an outstanding of Rs 3259 crore.

MALVIKA STEEL with an outstanding of Rs 3057 crore.

What are the banks doing for this? Why only use force on the poor?

Bravo guys!

Why should someone opt for what he knows he has no capacity to do? monies kept in banks belong to other institutions and people. If for some reason Mr. A who needs financial help asked a bank to so do and the bank granted his request, has the bank done something out of the way? Don't forget that banks do assess their individual customers and the collateral they provided by the banks credit department. It is important to note that banks do not immediately seize a defaulting customer's property without thorough follow ups and warning.

Bravo guys!

Why should someone opt for what he knows he has no capacity to do? monies kept in banks belong to other institutions and people. If for some reason Mr. A who needs financial help asked a bank to so do and the bank granted his request, has the bank done something out of the way? Don't forget that banks do assess their individual customers and the collateral they provided by the banks credit department. It is important to note that banks do not immediately seize a defaulting customer's property without thorough follow ups and warning.

Hi I am SHUBHAM,

Well people search such a bank that can give them loan and then leave them alone; unfortunately they are unable to find it. Using force by banks to recover loans is not a healthy deed. But people should know that banks not meant for charity rather they are a well established financial institutions and work for profit motive.

RBI has declared the use of force for loan recovery as illegal. But, RBI should make its rules of loan recovering flexible so that both the interest of the bank and its customers is judged and protected.

I accept the fact that there is some amount of fault with the bank but people ? are they very correct in what they are doing ? If you know that you will not be able to pay the amount why do you have to get the loan. In cases where something backfires unexpectedly I can understand but there are people who deliberately get loans and avoid paying them back and the bank has to take some step as money is in stake. So the fault lies with both I'll say. The bank should act responsibly while giving loans and so should citizens applyinng for loans.

First of all we should bifurcate the people into two. 1) will full defaulters and another genuine. Now a days willfull defaulters have turned out a lot. Hence in order to arrest the same a slight negatativity has to spread to create awareness as well to inculcate the habit of repaying the installments on time. 2) genuine - banks have do certain provisions to cut down the rate of interest or to delay the period of repaying the loan. Finally banks are for the devolopment of the country which has great impact on the economy of the country.