Beware! I question everything and everybody.
Honesty is the best policy.
Taking loans from banks and not returning the same becomes a business or industry for them. They scout for greedy bank managers and cook a plan to siphon off the public money.
It is only the small borrowers who bother for rate of interest and calculate EMI etc.
Let us encourage each other in sharing knowledge.
But some banks can offer a one-time settlement to the defaulters as per the existing provision where in his dues will not attract any additional interest and the penalty can be waived off it the borrower come forward to settle his accounts within a stipulated period.
This is what I understand from a discussion I had with one of my friends who works for a bank.
"Earning knowledge is by sharing it with ISC and we will rectify our mistakes."
'Idhuvum Kadandhu Pogum "
Even this challenging situation would ease
Banks have the system of re-phasing the loans or one-time settlement with some relief terms if the borrower is not a wilful defaulter , is genuine and is willing to repay the loan sincerely. Banks may even 'nurse' the loans to bring back them to health if they are fit to be so.
But for all this, there are certain laid out guidelines decided by the bank board or govt or RBI. Individual managers cannot take arbitrary decisions.
There are 'Lok Adalats 'which have legal status and finds a via media with the lender and borrower to facilitate repayment of the loan with possible compromise genuine cases.
In most of the big ticket loans, there already would have been influences and pressures for the least possible interest also. In such cases even half a percent difference makes very high effect to the bank or lender-this way or that way. But when taking the whole situation inits overall dimensions, banks may also be willing to give some concession rather than losing everything. Unfortunately there are many who plan and wait for this and exploit the situation.
If the banks stop their cut-throat competitions for business and share the information about the borrowers and conduct of accounts, and banks do not fix unrealistic business targets,then a lot of NPAs and bad loans can be prevented. It also need to be dome legally that the directors and not different from the company, but responsible like a proprietor legally.
All this need political will.