Duties in Charge of Banks

Are there frequent cases, when the banks are claiming complete return of the loans ahead of time, if the borrower is using targeted loan not on purpose?

Александр  Alexander Falev
CEO, ROSGOSSTRAKH BANK
Such situations are generally characterizing the corporate lending market. In the retail part, upon targeted lending the funds are usually transferred electronically to the seller, the borrowers do not see them.
Елена  Yelena Rechkalova
Bank, Adviser to the Chairman of the Board of Directors
These cases are not common. After all, if the client does not pay a monthly fee, then most likely, it means that the client does not have that possibility.

In this case, when it comes to the supervision of the credit institutions in the targeted use of borrowed funds, this phenomenon is becoming increasingly common. To do this, banks upon the loan disbursement inform the customer about the availability of additional requirements (corresponding item is included in the credit agreement). For example, it may be a requirement that in 3-4 months the borrower must justify the intended use of 20% of the loan amount. And in that case, if the borrower does not confirm the intended use of borrowed funds, the credit institutions may increase the rate on the loan issued to him, that is, they encourage the borrower to comply with its obligations.
Алла  Alla Soldatova
Eastern Express bank, Director for quality and service
Usually, if a customer has confirmed the intended use of the loan and does not allow for delinquency, such claims do not arise. As a rule, the reference to the misuse of it is just the official reason to demand early repayment in a situation where the customer is in delay.