Your Borrowing Options ; with Personal Loans All but Drying Up, Here Are a Few Ways to Overcome Your Income-Expense Mismatch.

Summary

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When Navin Daniel set out to take a personal loan of Rs 25 lakh about seven weeks ago, the private sector bank where he usually banked his salary seemed eager to take up his business. Soon after Daniel filed the application, his bankers assured him they would release his loan "within a few days . But about two weeks into the deal, his bankers called up and said they could provide only Rs 8 lakh, which would again take a few days more.

After two more weeks, his bankers brought down the amount to Rs 4 lakh. Three more weeks later, Daniel is still awaiting his personal loan. When Daniel contacted his bank lately, they turned around and refused a loan. Now, the marketing professional is tapping his friends to tide over his shortterm funding requirements. Says Daniel: "If banks have a complete loan department to look into these issues beforehand, then they should have come back a lot earlier than just make blank promises.

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Extract

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Your Borrowing Options ; with Personal Loans All but Drying Up, Here Are a Few Ways to Overcome Your Income-Expense Mismatch.

With banks seeing high levels of default in personal loans, such rejections are becoming all too common. Banks and non-banking financial companies (NBFCs) have stopped disbursing personal loans, or unsecured loans, to good-quality customers. It's a sign of the times. The credit squeeze has put lenders in a spot of bother as it's getting difficult to raise resourc...

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