Indian Attitudes Towards Financial Integrity: Exaggerating Income on Loan Applications

A FICO survey reveals that three out of five Indian consumers find it acceptable to exaggerate their income on loan applications, higher than the global average. This behavior complicates financial integrity for banks and could lead to increased bad loan rates.

According to a recent survey by global analytics software company FICO, three out of five consumers in India believe it is normal to exaggerate income on loan applications. This figure significantly surpasses the global average of 39 per cent.

The survey, which examined 1,000 Indian adults among other international respondents, also found that more than a quarter (27 per cent) of Indians think it is normal to misrepresent their income on mortgage applications. Additionally, over half (54 per cent) consider it acceptable to falsify insurance claims.

Aashish Sharma, APAC segment leader for risk lifecycle and decision management at FICO, highlighted that with over 60 per cent of Indian consumers viewing income falsification as acceptable or justified, banks face the significant issue of 'liar loans', which could impact risk assessment and increase bad loan rates.

(With inputs from agencies.)