Indian banks are patting themselves for easing the process of Loan disbursement. Has the processed eased in favor of customer?
I had taken a loan and process of borrowing was easy. Bank official came to my office and got everything processed. As a consumer I was happy. But the real pain was when I was willing to foreclose the loan. Firstly, one has to wait for a year to foreclose. Fair enough as it was a predefined criteria. But real trouble started when at the time of foreclosing. First I could not payoff my loans at my home branch. There is only one branch in entire Kolkata for a loan pay off. For a city and population of Kolkata's size, one branch is a preposterous number, considering banking system is now driven by centralized technology easily accessed from everywhere. Secondly, there are plenty of misinformation provided in telly caller services. Lastly, Owing to the queue one has to waste precious days of work to pay off a loan.
In these scenario why would a person will take the pain to approach a bank instead it is easier to borrow from an informal traditional lender in market and pay him off at convenience without any hassle of paperwork. This is precisely the reason cash transaction still preferred for smaller loans in business community instead of approaching a bank.