Banks are acting as a trustees and not as a owner of the funds. The loans are given from the deposits made by the public in general. Moreover, in present scenario the banks are also answerable to its shareholders. The bank finance is not a charity. It is given to the needy person only after the request of a person.
However, before sanctioning the loan to any person/institute, the bank should thoroughly examine about the project and its viability. If it fails to do so, there are more chances of getting it bad. There are number of elements, which effect the recovery of the loan. If a person/institute is financially sound and yet not repaying the loan they are willful defaulters and bank should take strict actions against them. For the reasons above control, if the project fails, bank should take lenient actions and try to rehabilitate them.
Hence, only after considering the reasons for failure of loan, bank should take proper action to recover the money.
Marine Employers Liability
However, before sanctioning the loan to any person/institute, the bank should thoroughly examine about the project and its viability. If it fails to do so, there are more chances of getting it bad. There are number of elements, which effect the recovery of the loan. If a person/institute is financially sound and yet not repaying the loan they are willful defaulters and bank should take strict actions against them. For the reasons above control, if the project fails, bank should take lenient actions and try to rehabilitate them.
Hence, only after considering the reasons for failure of loan, bank should take proper action to recover the money.
Marine Employers Liability
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