Who offers personal loans?
Multinational and private sector banks offer personal loans without asking for a guarantee that the loans will be used for a specific purpose. While banks, typically, do not, and cannot, monitor the end use of funds, they want a declaration to the effect that they will not be used as another mode of badla financing, and, therefore, will not be used for speculative purposes. Having said that, the declaration is a mere formality. Suppose you were to borrow Rs 1 lakh and put in the money in stocks, even as you had savings of Rs 2 lakh, how on earth could any bank say with any conclusive evidence that the money invested in stocks was from the loan and not your savings? But, yes, to safeguard against default and misuse of the borrowing, lenders take the trouble of verifying your credentials and background. For instance, if you were to call ICICI Bank for a personal loan, they d politely inform you that an officer would be right over at your residence or office, whichever is convenient for y
