Following the recent judgement by the Delhi state commission fining ICICI Bank Rs. 55 lakh for using goons to recover a vehicle loan, the bank has decided to cut down on small-ticket loans. The bank cut donw loans ranging between Rs. 25000 and Rs. 35000. The risk is certainly high in the segment.
The bank had entered the small loan market a year ago, the bank feels that the market is till not mature enough to understand the issues related to the process of collection.
The bank will tighten the process of filtering small-ticket loans. “ Also, we have brought down the intrest rate on these loans from 48 per cent to 36 percent.
Citi Financial has also recently tightend its lending policies
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