Page 96 - MUDRA ANUBHAV

Figure No. 31 – Willful Defaulter

(Figure No. 31) This shows
misuse of the facility and

the funds being made
available to the borrowers.
This leads to economic loss
and hinders the availability

to funds to more genuine
borrowers. This problem could only be solved with
stricter actions against willful defaulters.

Figure No. 32 - Legal Action against defaulters

Also, to understand whether
the required actions are
taken against the defaulters
by their respective

financial institutions, the
respondents were asked
to share their experience.
Majority i.e. 88% responded

that their institutions do
take legal actions against such willful defaulters.
Although this is a solution, but legal processes
increase the costs to the Lenders and also

consume time and other resources. The overall
proposition does not stay very encouraging with
such experiences (Figure No. 32).

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