Loan recovery rules: People nowadays opt for a personal loan to fulfill their financial needs. After taking the loan, it is repaid by the customer by paying EMI (EMI repayment rules) every month.

It cannot be denied that after taking a loan, many times such situations arise that some people become unable to pay EMI or loan. In such a situation, the bank takes several steps while taking action against the loan holder. What action can be taken by the bank (bank action on loan default) in case of non-payment of loan, know here in detail.

The bank can take this action-

If you do not repay the personal loan, then the bank can file a civil case against you. This is also the legal right of the bank. The court can also order the person who does not repay the loan to repay the loan (Personal Loan bank recovery). In such a situation, the bank also gets the support of the court and there can also be orders to confiscate your property.

There will be trouble during recovery-

If the loan is not repaid, the bank assigns the responsibility of its recovery to the agency (Loan recovery rules). In such a situation, the steps taken by the recovery agent can cause you trouble. The recovery agent (RBI rules for recovery agent) can call you repeatedly for loan recovery and can also come to your house. Although RBI (Reserve Bank of India) has also made rules for loan recovery, the recovery agent has to behave within limits.

This will affect the CIBIL score -

If you do not repay the personal loan, your CIBIL score will first deteriorate. After this, it will be difficult for you to get a loan. Not only this, you may also have to suffer financial loss due to this.

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