Bank Loan Default: If an ordinary person goes to a bank and asks for a loan to set up a small business, his CIBIL score is questioned and he is asked to collect so many types of paperwork and documentary evidence that his courage breaks. That person gets trapped in the trap of micro finance companies which provide easy loans at high interest rates to start their business.
Arbati is unable to repay the loan
The banks, which do not show mercy on the unemployed for a few thousand rupees or a few lakh rupees, are easily showing mercy to the defaulters who have to digest loans worth crores of rupees. For this reason even big billionaires are not repaying their loans. This queue includes industrialists like Anil Ambani and Jindal to JP Group. This has been revealed in the answer given by the Government of India to a question asked in the Parliament. In the last 10 years, banks have waived off loans worth about Rs 12 lakh crore. Government banks have waived off more than half of this amount.
State Bank is at the forefront in abandoning those who have to digest the debt.
State Bank of India is at the forefront among those who have given up on taking loans. State Bank has waived approximately Rs 1.5 lakh crore in the last five years. After this comes Punjab National Bank, Union Bank of India, Bank of Baroda and Bank of India. Government banks are also far ahead in writing off loans. State Bank has written off approximately Rs 2 lakh in the last five years. In total, all the government banks have written off Rs 6.5 lakh in the last five years. Writing off the loan means that banks accept that the chances of getting the amount back are slim. After that various types of legal processes are initiated.
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