Monday, 22nd October, 2018

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'Travel loans’ for businessmen wanting to leave country after defaulting loan: Banks find unique way to tackle NPAs

24, Sep 2018 By Santosh Pradhan

New Delhi: Jagdish Malik, who heads Lena bank’s lending division spoke to Faking News and he had this to say,” The purpose of the banking system is to help people in need. In the current environment, it is the businessmen who are under deep stress and need for money. How can a businessman who has all his assets seized by the investigating authorities get money to go out of the country? This is where we come in. In a very first for India, we would offer travel loans at very low-interest rates to such people. Now the question arises as to what if they default the travel loan payment. We will make one of our employees fly with the concerned businessmen and see to it that the businessmen are trying to get money to pay us back and not just relaxing out there.”

Availing short-term overseas credit could become more difficult for less established firms, with India’s biggest banking fraud at the Punjab National Bank triggering a spell of self-introspection – and process strengthening – among local lenders. But amidst all this chaos, ‘Lena bank’ has decided to help businessmen who are under great stress and want to leave the country. There many defaulters who are left with no money to even leave the country for abroad and Lena Bank is here to help them. 205797-nirav-modi

After Lena Bank’s announcement, many other banks are also interested in adding such loan schemes under their offering list. Lena bank yesterday saw a huge number of people crowding at their branches to avail the latest loan offering. Lena Bank has ordered its employees to make the loan disbursal process as smooth as possible. There are many businessmen who have not yet established their business but want to first avail the travel loan as a matter of safety in case they default their future loans.