EMI Bounce: What will be the big loss if you do not repay the home loan on time, loan takers must know the rules..

Home loan Rules: To get a home loan, the customer has to complete several processes (home loan process). Along with this, after taking the loan, he has to fulfill many rules related to home loans.

These rules include repaying the loan and its EMI on time (home loan repayment). If you are not able to repay the loan on time, then you will have to suffer a huge loss. Most people are unaware of the rules related to home loans. It is beneficial to know these rules before taking a loan.

This is how the bank takes action on not repaying the loan -

After taking a home loan, the bank does not take any special action if the first EMI bounces. When two EMIs bounce consecutively, the bank sends a reminder to the borrower.

Even after this, if no attention is paid and three consecutive installments are not paid, then the bank sends a legal notice to repay the loan (loan repayment rules). Even after this, if the fourth and fifth EMIs are not paid, the bank declares the loan holder a defaulter. After this, the next action is taken.

Credit score gets spoiled-

First of all, the customer's CIBIL score gets spoiled when the home loan is not repaid. After this, he does not get a loan from any other bank. Even if a loan is available from somewhere, the interest rates (home loan interest rates) will be expensive.

Therefore, it is always better to keep the CIBIL score correct. A good CIBIL score (how to improve cibil score) helps in getting a cheap loan. You can maintain the CIBIL score (how to maintain cibil score) by paying the loan EMI and credit card etc. on time.

The mortgaged property can be auctioned-

A home loan is a secured loan, in return for this, the bank mortgages the loan holder's property (property mortgage rules) while giving the loan in the beginning itself. The property papers are deposited in the bank, for which a loan is taken.

In case of not being able to repay the loan, the bank (Bank News) can repay the loan by selling that property. In such a situation, if the loan is not repaid, the mortgaged property can be auctioned. The bank can take possession of the mortgaged property instead of the loan. Until the loan is repaid, the property papers of that property remain with the bank, and the bank has the right to sell it.

Many opportunities are available before the auction-

It is not that the bank will auction the property (property auction rules) without giving any chance. The bank gives many chances first. If the loan taker does not pay the EMI, then reminders and notices (bank notice on home loan) are sent to him by the bank.

Even after this, if the home loan is not paid, then the bank takes the step of auctioning the mortgaged property. Finally, the loan amount is recovered by auctioning the property (property auction process) with the money earned from it. The remaining money is returned to the customer (borrower's rights).

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