No. In case of individuals we have more to loose if we default (we loose our homes if we cannot repay), hence the ultra low NPAs in home loans segment.
Companies, on the other hand, try to game the system. Promoters never loose anything, they take loan and build the assets, and the idea is to repay the loan from the cash generated by those assets/business. If that fails, oops…lenders are left with…“collateral”.
Edit: this is not true for all the companies though. There are genuine promoters who will take loans, build businesses and repay as well. But we have seen enough cases of promoters taking lenders for a ride.
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