Bank Loan

Author: Shubhi jaiswar,
B.A.LL.B. 1st year,
Hemwati nandan Bahuguna Garhwal University ,
Pandit purnanand Tiwari law college Haridwar.

Banks can take the services of Recovery Agent to recover their loan. However, they cannot exceed their limits. Customers do not have the right to bully or force.

New Delhi: If a common man is unable to repay the EMI of his home loan or personal loan and defaults, then it is not that the lending company or the bank started bothering you. There are many such rules, which put a stop to his actions. Experts say that the bank cannot threaten or force itself if it does not repay the loan. You can use the services of recovery agents to recover your loan. However, they cannot exceed their limits.

Such third party agents can meet the customer. They do not have the right to bully or force customers. They can go to the customer’s home between 7 am and 7 pm. However, they cannot mistreat customers. If such misconduct occurs, the customer can complain to the bank. Banking Ombudsman can be knocked at not hearing from the bank.

Let’s know about those rights

(1).  Experts tell that for the recovery of their debt, it is necessary to adopt the correct procedure to the lending bank, financial institution. In the case of secured loans, they have the right to lawfully confiscate the assets pledged. However, banks cannot do this without giving notice. The Securitization and Reconstruction of Financial Assets and Enforcement of
Security Interest (SARFAESI) Act empowers borrowers to forfeit mortgage assets.

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(2)   Right to notice -.   By default your rights cannot be taken away nor does it make you a criminal. Banks have to give you time to repay the loan before occupying your property to recover your outstanding amount by following a set process. Often, banks take such action under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interests (SARFAESI Act).

(3).  The loan lender is then put into a non-performing asset NPA ie submerged debt when he does not pay the installment to the bank for 90 days. In such a case, the lender has to issue 60 days notice to the defaulter.
(4)   If the borrower is unable to pay in the notice period, then the bank can proceed to sell the asset. However, for the sale of assets, the bank has to issue a public notice of 30 days. In this, the details of the sale have to be given.

(5).  Right to get the right price of the asset, before the sale of the asset, the bank / financial institution has to issue a notice stating the fair value of the asset. It also needs to mention the reserve price, date and time of auction .Even if the right to get the outstanding money is taken into possession, the auction process should be monitored. The creditor has the right to
get the extra amount left after the loan is recovered. The bank will have to return it .

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