Banks cautious when giving loans

'Easy instalment plan' - three words that attract people to take loans and go shopping. However, with the economic crisis looming large, banks have become cautious. Gulf News readers speak about their recent experiences in trying to obtain personal loans.

Arshad Mahmoud said: "I applied for a loan, but the application was rejected. The reason given to me was that the bank had stopped giving loans due to the economic crisis. Additionally, they asked me to wait till the end of March for any further information."

Syed Muddasir had a similar experience. "I had applied for a loan a while back, but it was rejected. Earlier it was very easy to get a loan, but now it has become really difficult."

Nadeem A. Haji had received approval for an instant credit card loan, but was refused at the last minute. He said: "After the global economic crisis, the bank rejected my application, stating that they do not offer loans to employees of any real estate firms."

Due to the economic crisis, several residents have been refused loans. However, all hope is not lost.

Mohan Das managed to get a personal loan recently. He said: "It was surprisingly very easy to get a loan due to the prompt service of the sales executive present at the bank. He gave me a list of documents to be submitted. Additionally, I asked several questions regarding the hidden charges and my doubts were cleared."

Satish Vemula admits that banks have become cautious, but is glad that he managed to get a loan.

He said: "Most banks are giving loans based on a minimal salary. In light of the present crisis, they may have changed their rules. However, I managed to get a loan from the bank that I have an account with."

Najeeb K. P. wrote in to www.gulfnews.com about his personal experience.

"I had applied for a personal loan and it was approved five months ago. Four of the monthly instalments have been paid. However, now I am worried whether I can repay the balance amount as job stability is low due to the economic recession."

Raj Nair is confident that if one has a good credit history, there would be no issues in getting a loan. He stressed: "I feel that all the people in the middle income group share a good relationship with banks, and it should be easy for them to get a loan."

While some people are ecstatic after getting a loan, there was one Gulf News reader who regretted getting one.

Donna's loan application was approved three months ago, but bad luck followed. She said: "After the loan was approved, I was made redundant from my previous job. My pay package was great and the company has a good reputation, which gave the bank a great reason to approve my loan without hesitation."

Donna tried to get the loan cancelled, but the bank denied her request.

She said: "The loan is processed, but the money is blocked and cannot be withdrawn. I was told that I need a sponsor in order for the bank to release the money."