Gone were the days when some people defaulted on bank loans and got away with it by either hiding or running off the country. When a person defaults on a bank loan in today’s digital age, there is no hiding. You can be tracked easily by the banks. The number of loan defaulters has been increasing each year. Every loan default not only affects the bank but also the economy.
The increase in bank loan defaults primarily is due to aggressive lending practices by Banks and NBFC’s to meet their targets. Other cases can be of willful defaulters who don’t repay loans. Such bad loans are then written off and Banks/NBFC’s take the hit. As per the data of RBI, by the end of March 2018 there were less than 4500 borrowers who defaulted on loans. Their outstanding amount was 8,59,532 crore approximately. Such a huge amount has been defaulted by just 4387 persons. These cases occur more frequently in business persons and bigger companies.
There is a possibility that these willful defaulters might try and leave the nation forever without paying off the loan. Hence the government now is in the planning stage where any person who has defaulted over 50 crores worth loans cannot fly overseas without meeting the repayment obligations. Section 10 of the passport act talks about people who are in willful default of any loans above a specified limit of debt can be treated as financial and economic risk towards the country in public interest.
Ruloans suggests that defaulting on any loan is not healthy for your financial profile and also of your business. If government begins taking strict measures, then it will only increase legal troubles for you and your business. Hence it is wise to always pay off your loan EMI and bills on time to avoid any default scenario. Ruloans has been in this industry for over a decade and has been helping customers borrow right as per their needs. Let us help you get the right deal. Apply for a business loan today.