New norms laid by RBI for Loans

Waiting in lines is one of the biggest problems faced by our country. The huge population that wants to avail most facilities that are not feasible to them are the main cause for this. India being a financially poor country forces the general public to avail of loan facilities given by various banks such as Axis Bank, HDFC Bank, State Bank of India; some of which no not even clear the criteria of acquiring one which is why there is large number of applications, because of which people that have the credentials to acquire a loan have to wait for long to do so. To prevent this, the RBI (Reserve Bank of India) has laid down some new norms for loan takers.

The RBI has instructed all banks to give a certain timelines within which they will accept or reject loan applications, all within this timeframe. Each bank and financial institutions have to devise a system of acknowledging receipt of loan applications. This will help applicants know the approximate time that they will be sanctioned the loan and will help them plan accordingly; the same goes for if they are not going to be sanctioned with the amount. This will help those rejected to look for alternate sources of being financed.

The RBI and cordial banks are doing their bit to smoothen the loan giving process; the applicants must do so as well. Go through all documents given by the bank, fill them up and submit them with the loan application. If you have applied for a loan by giving some property as security which is already on rent, inform both the tenant as well as the bank. Let the tenant know that some bank staff would be visiting the property and ensure full co-operation from the tenant’s part. This will facilitate smooth flow of the loan process.