Akash had always dreamt of owning a home. For years, he had worked tirelessly, saved every extra money, and dreamed about he would no longer have to live in a rented house and owning his own house. His biggest motivation was to buy a dream house where his children could grow up happily. Finally, after years of hardworking, he decided to apply for a home loan.
When Akash first visited the bank, he felt relieved. The officials welcomed him, assured him that the process would be smooth, and promised quick disbursement of funds. They told him that within a week, the money would be released and his home loan was duly approved. With that promise in mind, he signed an agreement with the builder and fixed the payment date. For the first time in years, he felt his dream was no longer far away; it was about to becoming a reality.
But reality changed completely within a day, and those realities are untold and faced by many.
The Disbursement Delays
The disbursement, which was supposed to take place within weeks, keeps getting postponed. Days passed, then weeks, yet the builder did not receive the funds. Akash kept calling the bank, sending reminders, and even visiting the branch repeatedly. Each time, he was told that “The process is ongoing, just wait a little longer.” Meanwhile, the builder started losing patience. He reminded Akash of the penalties for late payment and even hinted that the agreement could be cancelled if the money didn’t come through on time.
The most shocking part was that even though the bank released the money late, the official records still mentioned the disbursement date as the requested date of the money. On paper, the bank appeared correct. But in reality, Akash was facing losses, late charges, and growing distrust from the builder. His credibility was being questioned, even though he had done everything right. He had fulfilled his part of the deal. It was the bank that had failed, but he was the one paying the price.
Miscommunication and Negligence
With Banks often sent letters to outdated addresses or to places where the borrower no longer lived their. Borrowers like Akash, who had no idea about such notices, were left in the dark. By the time they came to know about the situation, it was already too late. Penalties were added, legal notices had been issued, and Akash stood helpless, punished for something that was never communicated to him in the first place.
This negligence by banks created a chain of problems. The borrower was expected to act on information he never actually received. How can anyone defend themselves against something they are unaware of? This communication gap was not just a mistake; it was a deep injustice.
Moreover, banks usually do publish the notice regarding the house in the newspaper of different editions. For example, the Aksh lives in Delhi, and the news carrying the notice of his house was published in the Kolkata edition. The Banks are taking advantage of the same.
The Human Cost of Banking Errors
The consequences of such practices are far beyond numbers and late charges. They affect the very lives of borrowers. For Akash, sleepless nights became normal. He was constantly worried about losing his dream home. His family, who had been eagerly waiting to move into their new house, now felt helpless and anxious. Instead of excitement, fear had taken over their conversations.
Students waiting for education loans lose admission opportunities when funds do not arrive on time. Professionals planning to invest in growth face embarrassment when deals collapse due to delayed disbursements. Families, instead of feeling supported, are left struggling under sudden financial pressure. What begins as a joyful step toward fulfilling dreams often turns into a nightmare filled with stress, penalties, and disappointment.
The Bigger Question
The bigger question that arises here is why borrowers should suffer for mistakes and delays that are entirely the fault of banks? If the very purpose of a loan is to support people in their financial journey, then the responsibility should also lie with the bank to fulfil its promises on time.
Banks in India are regulated by the Reserve Bank of India (RBI). The RBI guidelines clearly speak about fair practices, transparency, and timely communication. Yet, in reality, many banks fail to follow these principles. Borrowers like Akash end up carrying the entire burden, while banks escape accountability.
A Call for Change
It is high time that this approach changes. Banks must realise that even a single delay in disbursement can create enormous problems for a borrower. They must ensure that the actual date of disbursement is recorded in official papers so that there is no manipulation. Communication should be proper, verified, and delivered directly to the borrower in a way that cannot be missed. Most importantly, banks must be held accountable for the financial as well as emotional loss caused to borrowers due to their errors.
Loans are meant to be a bridge between dreams and reality. They are supposed to connect people with opportunities, not push them into unnecessary struggles. When banks delay disbursements, send notices incorrectly, or fail in basic communication, they destroy the very trust that forms the foundation of the financial system.
Conclusion
People like Akash, a loan was never meant to be a burden. It was meant to bring him closer to his dream of owning a home. But due to the negligence and unfair practices of banks, what should have been a journey of happiness became a road of stress and fear.
Borrowers should not be punished for faults they never committed. The system must change so that loans truly serve their purpose, helping people move forward in life with dignity, fairness, and peace of mind.
-By Shreya Yadav
