After BBMP, banks to come knocking on residents' doors

Published: 30th August 2016 04:55 AM  |   Last Updated: 30th August 2016 04:55 AM   |  A+A-

After

BENGALURU: It’s been almost a month since BBMP rolled out its bulldozers to raze encroachments on storm water drains in the city. Before residents could recover from the shock of having their houses reduced to rubble, they now have to face the banks that gave them home loans.

Houses in Avani Sringeri near Bannerghatta Road, Bommanahalli, Mahadevapura, Yelahanka, Vidyaranyapura and Rajarajeshwarinagar were completely or partially demolished in the demolition drive.

Sathpathy, Deputy General Manager (Home Loans), State Bank of India, told Express they were yet to get the data of those who lost their houses, partially or completely.

However, SBI officials confirmed that they would proceed to collect the loan amounts.

“We give loan to people from our customers’ deposits. We are able to pay interest to our customers from the loan money repaid by those who have taken loans. If they stop giving the interest amount, how do we pay deposit interest to our customers? It’s a question of our bank’s credibility,” said a senior SBI official.

The official said SBI lends loans mostly to salaried people and very few businesses. “If payment is defaulted, we will catch them at their employer’s place to collect the EMI and loan,” the official said. “We are ready to go to court.”

A senior manager with Canara bank said, “We have insurance service to cover those who lose their houses in natural disasters. But our insurance does not cover demolitions of houses that had encroached upon government land. We are just loan lenders and we have to work without mercy, otherwise we will have to shut our banks,” he said.

Residents seek exemption

A resident of Ramachandrapura near Yelahanka said they constructed their house six years ago in Avani Sringeri Layout. “We had constructed the ground and first floors. The ground floor was given on rent and we lived on the first floor. The tenants moved out after our house was partially razed. We were able to pay the EMI with the rent. With no tenant, we have not been paying the EMI,” he said.

“We need exemption from paying loans. What’s the use of investing in a dead asset,” he asked.

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