We have often heard our elders saying that taking loan is not a good thing. The elders in the house often advise that one should not take loans. But in today’s times, taking a loan is not always bad. In modern life, it has become common for people to take loan from banks for everything from house, car to education. While taking loan, it has often been seen that people do not declare their income correctly. A survey conducted on financial fraud has revealed that people deliberately misrepresent their income in loan applications.
Shocking revelation in the survey
According to this survey conducted by global software company FICO, 27 percent of Indians believe that people deliberately misrepresent their income while applying for home loan or other loans. According to the survey, 3 out of 5 i.e. 63 percent people in India believe that it is right or normal to exaggerate their income while filling the loan form. The global average for this is only 39 percent. That means the average of giving wrong information about income in India is much higher than the global average. A shocking figure has also emerged in this survey conducted on 1000 people in India. More than half (54 percent) of people in the country believe that fraud in insurance claims is a normal thing.
Banks have to face these issues
The survey has also revealed that banks are now facing many cases of false loans. One third (33 percent) of consumers believe that it is never appropriate to overstate income in a personal loan application, while one third (35 percent) believe it is appropriate in certain circumstances. Ashish Sharma, Head of Risk Lifecycle and Decision Management, Asia Pacific Region, FICO, said, “More than 60 percent of Indian consumers consider it okay or fine to misreport income. This leaves banks facing the real problem of ‘false loans’, Due to which the risk cannot be assessed properly and bad loan rates may increase.”
What is the opinion of the people of other countries
The thinking of people in other countries of the world regarding giving wrong information about income while taking loan is quite different from India. Apart from about 1000 Indians, about 12,000 people from Canada, America, Brazil, Colombia, Mexico, Philippines, Indonesia, Malaysia, Singapore, Thailand, Britain and Spain were included in this survey. The survey made it clear that globally 56 percent people believe that inflating income in loan application is completely wrong and should never be accepted.
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