Loan defaulters also get many rights…even if you are repaying the loan on time, but keep information about this too.

Many people take a loan, but are not able to repay it completely. In such a situation, the tag of defaulter also falls on them, along with this, they also have to lose the asset mortgaged against the loan. But in India, loan defaulters also get many rights. If you are among those who repay the loan on time, then also keep information about this.

Nowadays, many people buy houses by taking home loan. Home loan is a long term loan, so its EMI also has to be paid for a long time. In such a situation, you do not know when adverse conditions come in front of you and it becomes difficult to repay the loan. There are many people who take a loan, but are not able to repay it completely. In such a situation, the tag of defaulter also falls on them, along with this, they also have to lose the asset mortgaged against the loan, because in this situation the bank has the right to legally confiscate the mortgaged property.

Not only this, loan defaulters are also worried that the recovery agents may misbehave with them, which may harm their reputation in the society. If you ever get caught in such a situation, do not panic. Understand your rights. Loan defaulters also have some rights. Know about it here.

No right to misbehave with defaulters

Even if the bank declares you a loan defaulter, recovery agents cannot misbehave with you because loan default is a civil matter, not a criminal case. In such a situation, lenders can file a case against the defaulter in civil court and demand repayment. Or they can seize the property of the defaulter, but cannot misbehave.

If the recovery agents still misbehave, then complain here

In case of non-payment of loan, lenders can take the services of recovery agents to recover their loan. But, they cannot cross their limits. They do not have the right to threaten or misbehave with customers. Recovery agents can go to the customer's house between 7 am and 7 pm. If recovery agents misbehave with customers in any way, then customers can complain about it to the bank. If the bank does not listen to you, you can knock the door of the banking ombudsman.

The bank sends a notice to the defaulters before doing these things

Keep in mind that the bank cannot take possession of your asset just like that. When the borrower does not pay the loan installment for 90 days, then the account is put in the non-performing asset (NPA). However, in such a case, the lender has to issue a 60-day notice to the defaulter. If he does not deposit the loan even in the notice period, then the bank can proceed to sell the asset. But even in the case of sale, the bank has to issue a public notice of 30 more days.

Right to challenge the auction price

Before the sale of the asset, the bank or the financial institution from which you have taken a loan 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. If the borrower feels that the price of the asset has been kept low, then he can challenge the auction.

If you cannot stop the auction

If you are unable to stop the auction of the asset, then keep an eye on the auction process because you have the right to get the extra amount left after recovery of the loan. The bank has to return that remaining amount to the creditor.