Bank Loan To Builders

Government of India (GOI ) have willfully ignored the interest of poor and middle class families who take loan and invest their hard money to have a living place but who are cheated by greedy builders and developers. GOI has completely failed to protect these families and on the contrary making all rules which suits to unscrupulous builders and which are beneficial for builders.

Due to exorbitant profit booked by builders and developers in construction of apartments, individuals are bound to pay higher prices and as a result of this cost of land and houses have been increasing by leaps and bounds. GOI has never tried to check and regulate ever rising prices. When people cry against abnormal price rise or abnormal delay in handing over of booked flats, clever ministers who are agents of builders often talk of global recession or they say that price rise is sign of prosperity. This is why cost of a house in all states and at all places has gone up and up only, leaving no sign of hope of house for poor and middle class families.

Government of India is not pressuring builders and developers to reduce prices of houses they have built  but  GOI has been telling banks to sanction housing loan to poor and middle class families even if they do not have adequate repayment capacities . GOI is least bothered whether the loan sanctioned by these banks goes bad. They are not worried even though volume of bad assets has been rising quarter after quarter and sickness of public sector banks in particular has reached upto critical level. 

It is unfortunate that in India, rules are framed and rules are enforced only to help and support who take care of powerful politicians and who manage expenses of election politicians fight.

God only helps poor and middle class families. There is no doubt to me that reckless financing made by banks have jeopardized the health of banks and helped only real estate builders. Individuals are motivated to spend more than what they can afford. Individuals are motivated badly by marketing forces employed by clever lenders to avail loan for purchasing a house.

Same situation is with education loan. Majority of higher study colleges and even primary schools have increased their tuition fee structure to unbearable extent .Poor and middle class families cannot dream of education for their children without taking loan from banks. Government of India take care of promoters of these colleges and schools , they do not bother whether the quality of study is good or not, whether the fee structure is too high and whether the youth coming out of these colleges are employable or not. 

GOI is least bothered that volume of education loan going bad in banks is increasing year after year only due to the fact that youth coming out of these colleges are not getting employment .It is very much painful to know that ninety percent of MBA and engineering graduates who acquire education after taking loans from banks are not employers in the eyes of most of recruiters.

Same pathetic position is in case of medical care facilities available in India. Poor and middle class families cannot afford medical care due to exorbitant cost of medicine and unbearable cost of medical care facilities in private nursing homes. Government hospitals in most of the cases are totally worthless and a place for post mortem only.

There is no doubt to me that in coming years ninety percent of population of India will not be able to arrange adequate education for their child, will not have enough money for buying a living place for their families and will not be in a position to arrange for medical care for their family members at affordable cost. Corrupt government will continue to cheat voters and Indian citizen on the ground of caste and community and simply cry using words like 'democracy' and 'secularism'.

In fact the present government has no moral right to rule this country when they cannot make suitable and proper  arrangement for education, house and medical care which are quality oriented ,which are price regulated and which are affordable for common men in India.Rich can afford anything they like but poor and middle calss families have to depend on many factors.

In fact unscrupulous builders have strong lobby in various ministries especially Ministry of Finance who manage change of rules as per their whims and fancies. On the contrary there is none in the country who can support aggrieved house seekers and who can ensure justice for all individuals who have booked flats after investing their hard earned money but have not been given possession even after lapse of promised period and even after lapse of three to five or even ten years. 

I would like to say that banks should not be pressurized by Ministry of finance to extend lending support to real estate developers. Rather builders should be heavily penalized for delay in giving possession of booked flats and for playing foul game with those who have given full payment for buying a flat but not got possession of flat. Banks should be advised to   stop helping builders who are not ready to reduce prices of flats and who are willfully avoiding repayment of bank loan and insisting for restructure of loans availed by them .Rather Strict action should be taking against willful defaulting builders who are building building pressure of MOF to liberalize repayment terms and relaxation in tax liability.