Banks to play shame game with guarantors for defaulters

By Accommodation Times News Service

The Banks have now decided to publish their photographs and name and other details in newspaper and at notice board of the bank branches and community centers on home loan defaulters.  The public sector lenders are their pictures of the willful defaulters in newspaper and at other places around the areas of the residence of such borrowers earlier this year to induce them to pay up.  This exercise has now been extended to the guarantors of loan defaulters as well as part of efforts to build pressure on the borrowers to clear their dues and Allahabad Bank is the first one to publish one such public notice today.    According to bankers, the photographs, names and addresses of the guarantors would be published in newspapers if the dues are not cleared within 15 day of the notice containing particulars of the original borrowers.

Some banks have also decided to prominently display the photographs and other details of the willful loan defaulters at the branches in the locality of such borrowers. Banks also expect such notices to act as a deterrent for others against any loan defaults.  As per RBI’s regulations, willful defaulters are mostly those who are found to be engaged in deliberate non-payment of the dues despite adequate cash flow and good net worth.

Allahabad Bank today published the photographs of two guarantors as well in the newspapers as part of a public notice for sale of two properties mortgaged for the loan. SBI began publishing the pictures of its individual loan defaulters in March this year, while UCO Bank has also went public with the name photograph and other details of a well –known industrialist for non-payment of loans by his company.

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