Nowadays it has become very easy to take a loan from banks or any institution. Banks and financial institutions give many types of loans. Whenever people suddenly need money, they think of taking a personal loan. It is available more quickly and easily than other loans. But if it is not paid on time, then it can create trouble for the borrower. In case of not repaying the loan, the customer may have to face financial as well as legal problems. Today through this news we will know what action banks can take in case of not repaying the loan.
CIBIL score will be affected -
If you do not pay the EMI of your loan on time, then first of all you will see it on your credit card. In such a situation, your CIBIL score becomes bad. Due to this, it becomes difficult for you to get a loan in the future and even if you get it, then more interest has to be paid. Apart from this, many bank-related works can also be hindered. Banks and other financial institutions are afraid to give you a loan if your CIBIL score is low or bad. They think that you will default on the loan.
Legal action can be taken.
If you have taken a loan from any bank or financial institution, then you will have to repay it. If you fail to repay the loan, then the bank or financial institution can take legal action against you. The bank can file a case in the civil court and demand to seize your property or stop your salary.
If the bank feels that you have deliberately bounced the loan EMI, then the bank can file a case of fraud against you under section 420 of the Indian Penal Code. In such a situation, the civil court (Civil Court News) can order to auction of the borrower's property. At the same time, there is also a provision of punishment in this case.
Confrontation with recovery agencies Recovery agent
The bank does nothing if an installment bounces (Loan EMI Bounce). When two or three installments bounce, the bank issues a notice to the borrower and asks him to pay the EMI. Even after this, if you do not repay the loan, then the bank takes the help of loan recovery agencies. These agencies try to recover the loan from the borrower with the help of recovery agents. Recovery agents collect money by phone calls and coming to the house.
RBI rules -
Reserve Bank of India has made some strict rules for personal loan recovery-
Banks have to first give notice to the loan defaulter.
During recovery from the customer, one has to behave respectfully.
Banks have to take special care to avoid harassment by recovery agencies.
What to do if you are unable to repay the loan?
If you are unable to repay the loan due to financial constraints, then you can talk to the bank for this. You can ask the bank (Bank News) for a new payment option or change in installment. In this situation, you also have the option of settlement. You can make a lump sum payment by talking to the bank.
Whether it is a personal loan or any other loan, not being able to pay it on time affects your financial condition and you also have to face mental stress and legal troubles. Therefore, if you have taken a loan or are thinking of taking one, try to pay it on time. If you are unable to repay the loan, then definitely talk to the bank to overcome this problem. If you work wisely, you can easily repay the loan and can also avoid getting into any trouble.
Disclaimer: This content has been sourced and edited from Hr Breaking. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
