How does a bank recover a personal loan from a person who has regularly defaulte

  1. adite profile image73
    aditeposted 8 years ago

    How does a bank recover a personal loan from a person who has regularly defaulted on payments...

    (in India)

  2. multifunctions profile image59
    multifunctionsposted 8 years ago

    banks take post dated cheques from the borrower. if these cheques bounce then they have recourse of section 138 of CRPC. which has penalty around 3 years and double the payment to be decided by civil court.
    the banks also declare that the person is a 'willful defaulter' as guided by the reserve bank of india, which means no other bank will now give the person loan.
    bank also is permitted to appoint recovery agents , who follow up and recover the loan from the bank.
    this is the course when the loan does not have a third party guarantee and security. normally banks do not take the colletarals in the personal loan. otherwise banks can recover from your collaterals as well.

Closed to reply
 
working