ICICI Bank has stopped lending to small segment borrowers and tightened its filters and loan underwriting practices following the recent fine of Rs 55 lakh by the Delhi Consumer Commission for employing “goons” to recover loan from the consumers.
ICICI Bank started providing loans from Rs 10,000 to low waged consumers few years back. Now, ICICI Bank is exiting from the small personal loans business (loans up to Rs 30,000) and about to close over 100 outlets which is used to sell loans to small borrowers.
Citigroup also made more stringent processes. Rumours are that Citifinancial is shutting 150 of its samll load issuing branches.