Views Collection

A man applies of a loan in a bank with his land as collateral. The man has some acres of land which lies at the river bed. The bank then sanctions the loan because the worth of the land is far higher than the asked loan amount. After a heavy rainfall the land gets swept away and the man doesn’t repay the loan. Calculating all the interest, the amount has already gone beyond the double of the actual value of the land. The man is happy with the money he had lent from the bank and the bank has no steps to recover the amount. After a year or so the bank has to write off the loan.

This has happened in many banks. The site inspector after receiving some amount of money recommends to the bank saying that the land is ok. Eventually the bank has to bear the loss. With such experiences the bank now days have strict rules and regulations and the crooks have not been able to sanction such loans at ease at present.