Buying things on loan has become quite common in the country, from buying a house to buying a car. Buying things on loan is a common trend which is becoming quite common in today’s society. Meanwhile, a survey has come out which has revealed a big thing about loans. Three out of five consumers in the country say that it is common to exaggerate income while applying for a loan.
This is a very common thing. This information has been given in a report. This survey was conducted to know people’s opinion about financial fraud. This survey says that Indians believe that people deliberately present their wrong income in the application made for getting housing or other loans. The number of people doing this is about one fourth in the country. Presenting wrong income is quite common in the country.
According to the report, three out of five consumers say that it is okay or normal to exaggerate their income in applications for taking a loan. This figure is 39 percent more than the global level. According to the information, this survey has been done on 1,000 people in India. According to this, more than half i.e. 54 percent of the people believe that it is normal to make mistakes in insurance claims. Many Indians exaggerate income in personal loan applications. Doing this process is also considered okay by the users so that financial honesty becomes even more complicated. Only one-third (33 percent) of consumers believe that exaggerating income in a personal loan application is never acceptable, while one-third (35 percent) consider it acceptable in specific circumstances.
Ashish Sharma, Asia Pacific Region Head for Risk Lifecycle and Decision Management at FICO, said, “More than 60 per cent of Indian consumers consider income misrepresentation acceptable or justifiable. Banks are facing a real problem of false credits, which can distort risk assessments and increase bad loan rates.” The survey covered nearly 1,000 Indian adults as well as nearly 12,000 other consumers from Canada, the US, Brazil, Colombia, Mexico, the Philippines, Indonesia, Malaysia, Singapore, Thailand, the UK and Spain.
Attitudes vary significantly globally. The survey shows that most consumers (56 per cent) strongly reject the idea of inflating income on loan applications, never accepting it. Only one in four (24 per cent) see it as acceptable in some circumstances and only one in seven (15 per cent) consider it a common practice, the report said.
