Loan Borrower’s rights: After taking a loan, many times it becomes difficult to repay the loan EMI (Loan EMI Rules) due to deteriorating financial condition. In such a situation, many people are unable to repay the loan and many types of problems increase. Now those who are unable to repay the loan have got 5 major rights (loan holder’s rights). RBI has also issued a guideline regarding this. Let us know about these rights.
RBI Loan Rules Loan default is not a new thing. Often many people are unable to pay the loan installment, so finally the bank declares them loan defaulters (loan defaulter’s rights). Even after loan default, the borrower has many rights but many people are unaware of these rights. A loan defaulter can protect his interests by using these rights. RBI has also issued guidelines regarding these rights.
Loan defaulters have the right to get information
According to RBI rules (RBI rules for loan defaulters), when a loan defaults, the bank is bound to inform the customer about it through a notice. If a loan holder does not pay 2 consecutive EMIs of a loan (Loan EMI rules), the bank will give a notice and tell what action it is going to take. Only after missing three EMIs in a row, i.e. after 3 months, one’s loan account can be put into a non-performing asset.
Recovery agent cannot misbehave
If a bank takes the help of a loan recovery agent for loan recovery (loan recovery rules), then this loan recovery agent cannot misbehave with the loan defaulter (loan defaulter’s rights) nor can he threaten him in any way. If this is done, the loan defaulter has the right to complain against the recovery agent.
The recovery agent (recovery agent rules) can contact the loan defaulter only from 7 am to 7 pm. If the recovery agent (rules for recovery agent) calls at a different time, then a complaint can be lodged against him.
The bank has to issue this notice
In case of loan default, the bank cannot auction the mortgaged property of the borrower (property auction rules) without issuing a public notice. The bank has to issue a 30-day public notice.
In this notice, complete details of the value of the property, date of auction (auction rules) etc. have to be given. According to RBI, before declaring a loan holder as a defaulter, he must be given a chance to repay the loan (RBI guidelines for loan recovery).
The loan defaulter can challenge this process
While auctioning the mortgaged property of the loan defaulter, if the value set by the bank seems low to the loan defaulter (loan defaulter ke adhikar), then he can challenge it and get the value fixed again. Before taking possession of the customer’s property, the bank has to give him an opportunity to repay the loan (loan repayment rules).
The loan defaulter can demand this amount
The bank recovers the outstanding loan amount (Bank Loan) by auctioning the mortgaged property of the loan defaulter (property auction rules). The loan defaulter (loan defaulter’s rights) has full right to take the remaining amount apart from the loan amount from the amount received by the bank from the property. He has the right to get this amount by applying.
