Loans to Lawyers.
Querist :
Anonymous
(Querist) 13 January 2011
This query is : Resolved
Many of the professionals and employees obtain personal loans. The NBFCs and Banks are not extending any personal loans to the lawyers. Lawyers get loans only by giving security either movable or immovable. Any details of case initiated by the lawyer whose loan was rejected?
Y V Vishweshwar Rao
(Expert) 13 January 2011
I agree with the view of the Anonymous !
There must be action by advocates for equal treatment before the banks for availing loans - Some other category of Professional / Employee/group of persons - are being treated in the same way !
Amit Minocha
(Expert) 13 January 2011
It is simple, personal loans are more often given arbitarily and keeping aside the proper procedure and guidelines and specially without seeking the repaying capacity etc and making false promises. Common public are easy pray to their false and frevious charges, interest and specially late fee (while statements are rarely recieved on time). For lawyer it is comparatively easy to object to such acts and knock the doors of Court while for rest it involves more time and financial costs. These NBFC etc. look for only such pray(s) for them whose cost and time of seking justice would be more than the illegal amount claimed from them. While common man can't afford a legal battle against them in many cases but a Lawyer can seek justice and intervention from Court against such unlawful demands.
Also since there is no movable or immovable security attached accordingly they have one less tool to harass the lawyer and if the matter goes to Court they are answerless and have to incurr the cost as well.
The problem is not with LAWYERS but with the mentality of these Lenders. so since you are near to doors of justice, you may have less chances to get abrbitary loan(s).
There has been a matter where an Advocate objected to refusal. It was well lot in discussions some time back.
A V Vishal
(Expert) 13 January 2011
The Delhi Consumer Commission fined ICICI Bank Rs 10 lakh for denying a credit card to an advocate on grounds that the profession is of a “negative profile”.
Taking the bank to task for indulging in “cavalier conduct and unpardonable negligence”, Justice J D Kapoor said the “conduct of the bank has not only defamed but also demeaned the profession as a whole”. Kapoor awarded the complainant, Saket-based advocate Nivedita Sharma, a compensation of Rs 50,000.
The bank, though, refuted the charge that it was not giving credit cards to advocates and said it would appeal against order before an appropriate forum.
In her complaint, Sharma said the bank offered her a free-of-cost credit card facility after she declined their offer for a loan. “After much insistence, I applied for the card,” she told the consumer panel. “I was surprised to get back the application after a few days with the endorsement that designation of advocate has a negative profile.”
Sharma then wrote to the ICICI Bank chairman and managing directors, and also sent copies to the Prime Minister, seeking reason for grounds on which the application was declined. The bank, she said, reasoned that each loan application is processed with pre-defined criteria. To this, the Commission observed that no service provider of financial facilities can deny a facility to any person by branding his/her profession “negative”.
N.K.Assumi
(Expert) 13 January 2011
Thanks Vishal, for the information.
Querist :
Anonymous
(Querist) 13 January 2011
Nice reply by Mr.Vishal, yet we are referring to the exceptional case only. What is the real situation?
Any body got Personal Loan without any surety or security.
Parthasarathi Loganathan
(Expert) 13 January 2011
I beg to differ from the opinion of the experts for the simple reason that nationalized banks have been the forerunner when it comes to extending loans to professionals. Though granting of loans can never be taken as right, If adequate credit worthiness is established furnishing Income proof, etc, nationalised no loans can be denied as nationalised banks have granted lakhs of loans to legal professionals. Please never generalize issues in isolation.
Querist :
Anonymous
(Querist) 13 January 2011
Mr.Parthasarathy,
I am talking about a loan given without surety or security. You need not give the name of the beneficiary, at least give the name of the branch, which extends loans to the advocates without surety or security.
Gulshan Tanwar
(Expert) 13 January 2011
No such banks, but where you have your account, you can approach the same and apply there. The first thing they will see that whether any cheque had bounced if had issued by you, if yes then they will not give you else take a small loan for your vehicle loan and repay it.
After that they will start giving you loan.
Gulshan Tanwar
(Expert) 13 January 2011
Negative profession and negative areas -- even Pizzas --are not offered in negative areas.
R.S.BANERJEE
(Expert) 30 October 2015
But in practical, still Banks deny loan, credit card to advocates. I have seen this practice in Kolkata.
