Top 2 unethical practices rampantly followed in Finance Departments

 

Unethical Work

As the role of finance is such that it dominates everyday life, such a role should be conditioned by ethical norms and expectations. From past sahukar to modern banks and NBFCs, giving the loan to support finically any business or to purchase necessary commodities or to fulfill a personal materialistic desire.

There are many sectors where banks and NBFCs giving loan and they give the loan to earn some interest from the customer side. Charging interest for the loan money is not bad or unethical practice. But there are several factors where bank officials and their agents perform several unethical as well as illegal practices to earn more or cheat their customers by getting an advantage for their unawareness. 

In the old sahukar system, there was no regulatory body to support the borrower but in the modern days, there are several bodies to support them like RBI, SEBI, IRDA and many more. Besides, many investors are still getting into mutual funds and as well as stocks because of the higher historical returns. It is true that equity mutual funds can offer higher returns than other asset classes over a lengthy period. However, they can be unstable in the short term. They can also offer bad returns in a short period. In this article we will forces on the top five unethical practices performed by several banks, NBFCs, Mutual Funds and how a normal people or a borrower can get rid of it and don’t fall on those traps.

TOP 2 UNETHICAL PRACTICES AND SOLUTIONS

1.     Lack of Transparency: In the whole lending borrowing system, transparency is the most required and necessary component. Most of the time peoples get loans in hurry and forget about this key component and lenders take the hurriedness as an advantage to cheat customers. Before singing a loan, contract, document, every borrower needs to check every point that is written there. Interest Rates, Loan repayment time, Processing charges, Hidden charges and other terms and conditions are needs to understand by the borrower very clearly. This is lenders duty to aware their borrower if they are unable to read to those legal documents. But most of the time bank agents mislead their customer at the loan giving time and at the time of repayment customer gets to know about those unethical practices and they got bankrupt or pay a heavy charge which is hard to effort.

Solution:

Always read the contract seriously before Sing in.
Check various terms and conditions.
Always talk in detail with the agent before taking the loan.

2.     Fake Promises: At the time of loan giving, agent gives many fake promises which are not followed after the loan successfully passed. The customers are easily trapped on those fake promises and take the decision to take the loan from those companies. Agents give several fake and misleading promises regarding Late Payment, Contract breach, Bounce charges and possession of the collateral if default which seems very attractive to the customer. This Promises are not written anywhere in the contract and those are not following any guidelines which are set by the regulatory bodies. Peoples believe them by the trust towards the agents or they come with greed.

Solution:

Don’t believe in the fake promises which are not written in the terms and conditions.
Judge the promises whether there are possiblities or not form the lenders’ perspective.
Follow the Regulatory Bodies Rules.
Always ask those promises in written format. Because in future any problems happened with you then you will at least have proof to get justice.