Loan Defaulters: If your property is auctioned due to non-payment of loan, you should know your rights..

Sometimes a person may need to take a loan in an emergency and while giving a big loan, the bank keeps the property documents of the loan holders. If you do not repay the loan on time, then the bank can declare the loan taker as a defaulter (Loan defaulter's right) and recover the loan amount by auctioning his property. If you ever face such a problem, then you should know about your rights.

In this condition, the bank declares you a loan defaulter-

Your property is not auctioned immediately by the banks (bank auctions India). If you miss two EMIs of your home loan, then a reminder notice is sent to you by the bank. If you do not pay three consecutive installments to the bank, then the bank sends you a legal notice to repay the loan, but if you have not paid the EMI after the warning, then the bank declares you a defaulter (bank auction condition).

Know what are the rights of the loan defaulter-

It is not that only the banks have the rights. In such a situation, the loan defaulters also have some rights. The first of which is that-

If the loan holders do not repay the loan, then many banks take help from recovery agents (Recovery Agents Kon Hai) to recover the loan amount, but these recovery agents appointed by the banks do not have the right to threaten or misbehave with the customer. If these recovery agents misbehave with the customer in any way, then in such a situation the loan holders have the right to complain about it to the banks. If the bank does not listen to this matter, then the customers can take the help of the Banking Ombudsman.

-Loan holders also have many other rights. Let us tell you that the bank cannot take possession of your property just like that. There is a complete process for this, only after which the property can be taken into possession. According to the rules, if the borrower does not repay the loan installment for 90 days, then his account is transferred to the non-performing asset.

However, if such a case comes, the lender has to issue a 60-day notice to the defaulter. If the loan defaulter does not deposit the loan even in the notice period, then in such a condition the bank can proceed with the sale of the asset, but for this also a public notice of 30 more days has to be issued by the bank.

-Along with this, the bank or financial institution from which you have taken a loan, before selling the asset, those banks or institutions have to issue a notice to the loan defaulter (auction property pr defaulters ke adhikar) stating the fair value of his asset. In this notice, all the important things like reserve price, date and time of auction, etc. have to be mentioned. If in the event of the auction, the borrower feels that the price of his asset has been kept low, then he has the right to challenge the auction (bank auction property).

-Along with this, the borrower (borrower's rights in property auction) should keep an eye on the entire process of auction of the asset (Bank auction process), because the loan borrower (borrowers rights) has the right to get the remaining amount after recovery of the loan. Banks have to keep as much money as the loan amount and return the remaining amount to the creditor.

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