TOKYO -- Banks in Japan will tighten screening of personal-loan applications starting in January amid growing criticism that easy credit has contributed to a jump in personal bankruptcies and people struggling under heavy debt.
In Japan, banks issue loan cards that allow holders to borrow money by withdrawing cash from an ATM without putting up collateral or specifying how the money will be spent. Those already holding banking accounts can use their ATM cards. The ease of obtaining loans, including 24-hour online applications, has led to a sharp increase in the number of users.
