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  • Category: Miscellaneous

    Musings of a convoluted mind: How such enormous fraud is possible?

    In December, 2002, I took a home loan from a major private sector bank. Later, I got it transferred to a public sector bank. Both the times I had to submit many documents, salary details, my wife's salary details, the papers related to the flat, papers related to society and also details of witnesses. I had to fill up lengthy forms. Both the banks inspected my flat. Although all the documents were photocopied by me, the banks charged processing fees and photocopying fees. It was a terrible process for me. Moreover, I had to take two insurances for taking this loan. I clearly understood that no person can commit fraud. I thought that the system of sanctioning loan was full-proof.

    Now, when I hear about frauds of gigantic proportion, I simply think how is it possible. Didn't the bank follow those procedures which they follow at the time of sanctioning loans to common people? Or, is the procedure different for people taking loan amounting to thousands of crores of rupees?

    Who knows?
  • #627408
    Even for my son's education loan there were whole amount of process , two guarantors and above all one has to sign more than 60 pages and the bank not allowed to read nor gave the copy. When such was the precaution they take, how come huge amount was given by a branch as a manager has the power to sanction below five crore loan. How come PNB kept on giving loan to a defaulter without even waiting to realize the already paid loan. Thus I would blame the banks and officials who might have greased from top to bottom and they played with the public money and the beneficiaries mocked at the system.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #627412
    All these rules will have some loopholes which will be known to the top people of the banks. But they want to show their strict rules and regulations to middle-class people only. For your loan or for my loan we will not give any money to the officer. The maximum we may offer a coffee when he comes for inspection. But when the give crores of rupees as loans they will exploit the loopholes and sanction those loans and for that, they will be charging heavily from these beneficiaries. If the person is getting a loan 1000 crores, these people may be getting 5 to 10% of the sanctioned amount. My sister's son had taken a loan for his education from a bank. His father is a government high school headmaster. The Bank asked him for collateral security. Then my father has given his house as the collateral security. Later on, he repaid the loan and then got back the papers. So all rules and regulations for a common man only but not for big shots.
    always confident

  • #627433
    Most Indians would be asking the same questions Mr.Partha, Why bank rules differ for the public and fraudsters?.

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