It was told by the banks there is a steep rise in defaults on the loans on the on the second - property. It was said by the DGM of the credit monitoring and restructuring section of the Union Bank of India, Ashok Jain that generally, banks streamline loans if there is solid evidence the borrower has come across with woes. If there is a pay cut or a career loss or, a borrower will have to submit a company report to the bank to establish the situation.
Moreover, such borrowers could as well submit evidence of having applied to a different company to ascertain their repayment capacity. He added that in such situations, banks generally will decrease the monthly payments and increase the loan period to a maximum of 30 years. Banks could as well offer a borrower an interest holiday or permit a borrower a suspension of, for example, two- months to three months.