India is a largely populated country but majority of people afraid of taking banking services either due to the accessibility problem or services problem. Loan, which is a need of farmers, service class, industries, students and even corporate often face some common problems. Contrary banks too face so many prblems in terms of bank recovry and producing of fake documents by the borrowers. According to Mr. Kislay Pandey - Loan Matter Advocate, the Supreme Court of India," To avoid loan matters, both bank and borrowers should clearly read the documents of each other." Many small and medium industries usually face funding problems and to overcome these problems they often borrow money from banks in the form of loan for the working capital management. Their financial problem further aggravates when they failed to produce required security against the loan due to teething problems of a new business set-up. Due to low capital stakes and limited assets, these small businesses usually pay higher interest rate in comparison with large enterprises.
 
According to Mr. Kislay Pandey - Loan Matter Advocate, the Supreme Court of India," In rating the SMEs for loan approvals and interests, factors like timely payments and loyalty should also be considered." In contrast, the SMEs should produce only genuine balance sheet as any kind of manipulated data or account detail can leave a negative impact and may deteriorate their rating. These are some of the problems SMEs often encountered. Now switch to individuals and households who usually face problems in acquiring home or property loans. According to Mr. Kislay Pandey - Loan Matter Advocate, the Supreme Court of India," There are basically seven common problems associated with the loan related problems, these are, rejection of the application at the initial stage, non-refunded processing fee. Difference between the loan demanded and sanctioned, fluctuations in interest rate, difference inproperty evaluation, non-clarity about down payment and problems in title deeds and NOC documentation problems.

As per the report of "Advisory firm Boston Consulting Group and Federation of Indian Chambers of Commerce and Industry and Indian Banks Association,  the banking industry yet to be in a tight spot on dud loans. The NPA levels could cross 5% in the next two years if policy uncertainty persists, the report said. But a deeper examination of the NPA profile shows more opportunity than threats, and over the past two years, retail segment NPAs have come down across bank and product types. Banks have a huge opportunity to use information analytics for credit assessment and early warning systems.