RBI Rules: Those who do not repay the loan have these rights, RBI gave information..
People take loans to meet their needs, but sometimes certain circumstances arise that make it difficult for a person to repay the loan. In such a situation, the loan taker has to lose the mortgaged asset because the bank has the right to legally seize the mortgaged property in this situation. However, in such a situation, many times the borrower fears that the recovery agents might misbehave with him, due to which his image gets tarnished in the society.
If you too have faced such a situation, then you need to know about some of your human rights. Keep in mind that even if the bank declares you a defaulter, the bank cannot misbehave with you because loan default is a civil matter, not a criminal case. Know your rights here.
Complain about the misbehavior of the recovery agent here-
In case of non-payment of loans, lenders can take the services of recovery agents to recover their loans. But, they cannot cross their limits. They do not have the right to threaten or misbehave with customers. Recovery agents can visit the customer's home between 7 am and 7 pm. If the recovery agents misbehave with the customers in any way, then the customers can complain about it to the bank. If you do not hear from the bank, you can approach the Banking Ombudsman.
It is necessary to send notice to the bank-
Keep in mind that the bank cannot take possession of your asset just like that. When the borrower does not repay the loan installment for 90 days, the account is then classified as a non-performing asset (NPA). However, in such a case, the lender has to issue a notice of 60 days to the defaulter. If he does not deposit the loan even within the notice period, then the bank can proceed with the sale of the asset. But even in case of a 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 where you have taken the 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 the auction. If the borrower feels that the asset has been underpriced, he can challenge the auction.
If you are unable to stop the auction from happening-
If you are unable to stop the auction of the asset, then keep an eye on the auction process as you have the right to get the additional amount left after recovery of the loan. The bank has to return the remaining amount to the creditor.
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