HindustanTimes Mon,22 Dec 2014

Missed EMI cycle? You can’t switch loans

Mahua Venkatesh , Hindustan Times  New Delhi, September 10, 2013
First Published: 01:21 IST(10/9/2013) | Last Updated: 01:23 IST(10/9/2013)

You may not be able to switch your loan to another bank in case you have faltered in paying a few of your equated monthly installments (EMIs) of your loan to your original lender.


To keep a check on non-performing assets (NPAs) or bad loans, banks have decided to exchange information pertaining to the performance of all loans. The Reserve Bank of India recently allowed borrowers to switch their loans from one bank to another without incurring charges

The finance ministry is also keeping a close watch on the same. “This issue of NPA has been discussed at length with bank chairpersons and all steps would be taken to address it,” an official source who did not wish to be identified told HT.

The gross NPA level touched 5% in 2013 causing headaches for the RBI as well as the government.

Despite an economic slowdown leading to salary cuts and job losses, 75% borrowers across India who have taken loans to purchase homes or cars, have been rated as very safe by Credit Information Bureau India Limited (Cibil).

“The retail loan portfolio is under control and we share and pass on all relevant information relating to retail loans such as home, auto and personal,” said M Narendra, chairman and MD, Indian Overseas Bank.

Meanwhile, a few domestic banks have also decided to put up photographs and other details of wilful defaulters in an attempt to recover outstanding dues. If that does not work and the borrower does not clear dues within 15 days, banks could even publish the photographs of the guarantors, who would then be debarred from getting credit.

more from Banking

CCEA gives nod for IDFs to take over bank loans

In a move that could boost the cash-starved infrastruc­ture sector, the Cabinet Committee on Economic Affairs on Tuesday gave its clearance for infrastructure debt funds (IDFs) to take over existing bank loans.
Most Popular
Copyright © 2014 HT Media Limited. All Rights Reserved