Bad loans

Credit-Iinfo has revealed that 147,000 entities have unpaid loans. Around 4,000 court cases are currently underway regarding these unpaid loans. The list only concerns loans of less than USD 100,000, implying there are also more serious loan defaults waiting to be uncovered.

The financial crisis has damaged many businesses, and many people who have taken out small and medium sized loans just cannot pay them back now. When there is a default on a small loan, banks generally don’t go to the courts but try to resolve the situation by restructuring the payments. But the situation becomes very serious when a person who took out a loan has lost their job and has no collateral or property to set against it.