Bank Loan Default:  If a common man goes to a bank and asks for a loan to start a small business, then along with raising questions on his CIBIL score, he is asked to do so many paperwork and document proofs that he loses courage. That person gets trapped in the trap of microfinance companies that easily give loans at high interest rates to start his business. 

Arabati is unable to repay the loan 

Banks that do not show mercy on the unemployed for a few thousand rupees or a few lakh rupees are now easily being merciful to the defaulters who have embezzled loans worth crores. Due to this, even big billionaires are not repaying their loans. Industrialists like Anil Ambani, Jindal and Jaypee Group are included in this queue. This has been revealed in the reply given by the Indian government to a question asked in the Parliament. In the last 10 years, banks have waived loans worth about 12 lakh crores. More than half of this amount has been waived by government banks.

State Bank is at the forefront in releasing the loan defaulters 

State Bank of India is at the forefront in letting off those who take loans and embezzle them. State Bank has waived off about 1.5 lakh crores in the last five years. After this comes Punjab National Bank, Union Bank of India, Bank of Baroda and Bank of India. Government banks are also far ahead in writing off loans. State Bank has written off about two lakh rupees in the last five years. All government banks together have written off six and a half lakh rupees in the last five years. Putting a loan in the bad account means that the banks assume that now the chances of getting this amount back are low. After that, various kinds of legal procedures are initiated.