Majnoon Ajnabi, I wouldn't believe if you say you obtain permission from your bank every time you travel! Bank lending is quite different in this region when compared with the banks operating in Europe, North America and Australia. I agree that banks should not lend to high risk borrowers but I completely disagree when you say 'they do not'. If they had not, we would have not been in financial crises--you negated your own point.
Personal loans are typically not fully unsecured. Of course there is no collateral and mostly no guarantees involved, but there is an undertaking from borrower's employer to transfer borrower's salary and all financial dues including service end benefits to the bank. This gives bank a comfort to recover a very small percentage of the loan in case of a default. Rest is on insurer. Let me assure you that risk management process does not take the factor in how often one travels outside the country to classify someone a high risk borrower. I would not classify cabin crews high risk borrowers just because the nature of their job that requires them to travel a lot. do you think airline pilots are high risk borrowers due to their nature of job? Certainly not. When banks assess a loan application, they generally base their decision on applicant's salary, current liabilities, financial history/record, period in job, employer's reputation etc.
I suggest to stay away from all the banks (I am no longer in banking business so you don't have to single out a bank!) and don't take loans unless it is inevitable.
Majnoon Ajnabi, I wouldn't believe if you say you obtain permission from your bank every time you travel! Bank lending is quite different in this region when compared with the banks operating in Europe, North America and Australia. I agree that banks should not lend to high risk borrowers but I completely disagree when you say 'they do not'. If they had not, we would have not been in financial crises--you negated your own point.
Personal loans are typically not fully unsecured. Of course there is no collateral and mostly no guarantees involved, but there is an undertaking from borrower's employer to transfer borrower's salary and all financial dues including service end benefits to the bank. This gives bank a comfort to recover a very small percentage of the loan in case of a default. Rest is on insurer. Let me assure you that risk management process does not take the factor in how often one travels outside the country to classify someone a high risk borrower. I would not classify cabin crews high risk borrowers just because the nature of their job that requires them to travel a lot. do you think airline pilots are high risk borrowers due to their nature of job? Certainly not. When banks assess a loan application, they generally base their decision on applicant's salary, current liabilities, financial history/record, period in job, employer's reputation etc.
I suggest to stay away from all the banks (I am no longer in banking business so you don't have to single out a bank!) and don't take loans unless it is inevitable.