Are Rules Only for the Middle Class?

Are Rules Only for the Middle Class?

It’s an irony we see repeatedly—one rule for the rich and another for the middle class. Recently, reports surfaced about Anil Ambani receiving a ₹10,000 crore loan approval despite a massive default of ₹46,796 crore. Meanwhile, a middle-class individual struggles to secure a ₹10 lakh loan after defaulting on just four EMIs.

This stark contrast begs the question: Why such leniency for the wealthy while the middle class bears the brunt of strict banking policies?

Banks and financial institutions often justify their actions by citing recovery probabilities or collateral guarantees. However, it’s no secret that large corporate loans turn into Non-Performing Assets (NPAs) far more frequently than smaller loans. Yet, the middle class faces harsher scrutiny, even for minor delays.

The Double Standards in Lending Policies

1. Corporate Bailouts vs. Personal Rejections:

The banking sector regularly restructures loans for defaulters in the corporate world, while the middle class faces CIBIL score-driven rejection for small amounts.

2. Accountability Gap:

Who ensures accountability when billions in corporate loans are written off? The middle-class taxpayer, who ironically struggles to get a fair chance in the same system.

3. Emotional Impact on the Middle Class:

For the middle class, a rejected loan often means halted dreams—education, housing, or healthcare needs. For corporates, it’s just another day in the boardroom.

Is There a Solution?

To bridge this glaring gap, banks need to:

Implement uniform policies that don’t discriminate based on financial standing.

Enforce stricter accountability for large corporate loans to prevent recurring defaults.

Reward genuine repayment efforts by small borrowers.

Final Thoughts

The middle class, often hailed as the backbone of the economy, deserves fair treatment. It’s time we question why billionaires enjoy the safety net of relaxed rules while the middle class drowns in red tape.

Do you think the middle class is being treated fairly in India’s lending ecosystem? Share your thoughts below.

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