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May 22, 2026
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Banks casual in granting big loans, strict with small borrowers: SC
The Supreme Court has said banks like State Bank of India are "casual" while sanctioning massive loans to big corporate entities, but impose "stringent conditions and tedious process" amounting to "borderline harassment" on ordinary citizens seeking small loans for personal reasons.
Expressing its displeasure over the "troubling trend", a Supreme Court bench said the government needs to frame a policy with respect to concessions or incentives in giving loans to ordinary people, so as to give the maximum benefit to those at the lowest rung of the social or financial strata.
However, the bench comprising Justices Ahsanuddin Amanullah and R Mahadevan said it was in no way suggesting easing of rules and requirements for loan facilities, which was best left to the Reserve Bank of India and banks to decide. But the procedure so adopted could certainly be made easier and fairer for loan seekers or applicants and thereafter at the stage of recovery also, it said.
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