Loan Default Is Not The End!

By Bank Bazaar | September 9, 2016

Defaulted a loan? You ought to know these rights!

“Oops! I did it again. I failed to repay. Now I am lost in the game…Oh Baby, baby!”

Now that’s one song which every loan defaulter can relate to. Repaying a loan and keeping up with the EMIs can be quite an uphill task. It’s possible to tumble and fall into a spiral of debt from defaulting on your loan. This can be quite worrying and you’re probably wondering what the consequences will be. Well, while defaulting on a loan repayment is certainly something you should avoid, it is not the end of the world and won’t brand you as a criminal.

If you are worried sick about having defaulted on your loan, we have something that we hope will make you feel a little better. There are certain rights which have been established to safeguard the interest of loan defaulters. Read on to know what these are.

Let’s begin. It’s important to know that banks have a provision for restructuring the loan. There are various ways to do this depending on the type of loan you have taken. However, one common method would be extending the tenure of the loan. What happens here is that with the extension of your loan tenure, your EMIs become smaller and therefore, easier for you to manage. However, the bank must perceive the reason of default to be genuine before they do any kind of restructuring. The Reserve Bank of India (RBI) has issued guidelines for this. For example: the loan tenure can be increased by not more than 1 year in most cases. Foreclosure by selling the collateral with the borrower’s co-operation is also advised as the next step.

Does a default mean that you need to give up ownership of the asset for which the loan was taken?

Owning a house or a car is a dream come true for many because of the availability of loans. In the last few years with an increase in the standard of living particularly in the metros, the once conservative and loan averse investor is now willing take on loan commitments to satisfy even leisure requirements. However, if you find that you are in a situation where you will not be able to meet your loan obligations, what do you do?

Running away from the lender is not an option. Banks/lending institutions understand that there could be genuine reasons because of which the borrower is unable to make timely payments. For e.g. the loss of a job, or an accident that may have confined the borrower to his / her bed. Banks are more likely to consider your situation, if you have always paid your EMIs on time, before the things took an unfortunate turn. Based on how genuine your intent and case is, the bank may look for various feasible solutions that are mutually acceptable. The borrower will benefit because he will be able to retain his asset and the bank will also benefit because this agreement will prevent an addition to its non-performing asset (NPA) portfolio.

The various options that can be worked out include:

  • Rescheduling your debt: After having analysed your financial position, if the bank feels that the quantum of the EMI is what is troubling you, they may be willing to reschedule your debt by extending the loan tenure. That will bring down the monthly EMI commitment, though it will mean more interest outgo in the long-term. However, you should consider the immediate relief it can bring to your current situation. When the tide turns and you are facing better times you can try negotiating with your bank and revert to your old or higher EMI or even prepay your loan. Closing your loan early can help to save excessive interest outgo as long as the bank doesn’t levy a heavy prepayment penalty.

Check This: Should you invest or prepay your loan?

  • Deferring the payment: If your financial situation is such that there is likely to be a jump in cash flow going forward because of a change in job or any other reason, you may seek temporary relief from the bank for a few months. The bank may permit the same but may charge a penalty for not paying within the time frame agreed upon earlier.
  • One time settlement: If you express your desire to pay back and notify the bank about your current financial condition, banks may be willing to give you the option of a one-time settlement. Please note that this will be done on a case-to-case basis. This is a good way to get rid of your loan if you have some money. Usually the settlement amount lower than the original amount you would have had to pay. i.e. the bank may waive off some amount or charges. If your financial situation is really bad, then you may need to file for bankruptcy to free yourself from the loan commitment.
  • Conversion of loan in case of unsecured loans: Banks tend to be stricter as far as unsecured loans are concerned. The borrower could opt for converting the unsecured loan to a secured one by offering a security. This will bring down the rate of interest and thus the EMI burden.

Running away from the problem is not the solution. Not only will you undergo emotional stress, you will also end up losing your asset. Remember, your intent to pay off the loan should be evident to the lender. So be wise and talk to the bank representative the moment you realise that you will not be able to meet your obligations. Never wait till things get really bad.

What happens if none of the above options work out?

If none of the above options work, after giving you time to repay you dues, the bank will take the next step which is repossession of the asset (in the case of a secured loan). Here’s what will happen.

Movable asset (Car/Auto)

  • The borrower will be given a notice of 7-15 days to pay the dues before the repossession of the vehicle takes place. In case of non-payment within this notice period, the bank will repossess the pledged vehicle.
  • After repossession of the vehicle, a pre-sale notice will be issued to the borrower giving him seven days to pay the outstanding dues. The pre-sale notice will clearly mention the details of the concerned office and the corresponding contact person for payment and release of the vehicle.
  • In case the borrower makes the payment in accordance with the agreed terms of settlement, the vehicle will be released back to the borrower within seven days from the realisation of the payment.
  • If the borrower does not manage to make the payment, it will be sold through an auction through dealers empanelled with the bank within 90 days from the date of repossession.

Immovable Asset (House/property/land)

  • A notice will be sent to the borrower u/s 13(2) of the SARFAESI Act. This can be done only after the loan is classified as an NPA as per the guidelines set by the RBI.
  • The customer will be allowed 60 days, post issuance of the notice, to regularise the account or come forward to settle the account.
  • If the borrower refuses to pay, then the authorised officer will ask for the physical possession of the mortgaged property by handing over the demand possession notice to the borrower.
  • The bank shall proceed with the auction of the attached property after 30 days of taking possession of the property. This is in the event, that the customer does not come forward and settle the loan. The bank shall send the customer a letter intimating him about the venue of the sale, indicating date and time of the same.
  • The bank will consider handing over the possession of the property to the borrower any time after repossession and before concluding the sale transaction of the property, provided the bank dues are cleared in full.

Any excess amount obtained, after adjusting the dues on the loan, will be refunded to the borrower.

Additional Read: Home Loan default – How to handle one

The Rights of the Borrower

The SARFAESI act gives the customer the right to appeal against the action of repossession taken by the bank in the Debt Recovery Tribunal u/s 17 within 45 days from the date when the action was taken. If the DRT passes an order against the borrower, then an appeal can be filed before the Appellate Tribunal within 30 days of receiving it. If it is held in appeal that the possession of the asset taken by the secured creditor was wrongful, the Tribunal or the Appellate Tribunal may direct its return to the borrower, along with appropriate compensation and cost.

You can exercise the following rights if you default on a loan:

Right to Notice

When you fail to pay the loan dues, the bank can’t take any immediate action against you. If you haven’t paid EMIs for 90 days, the bank must serve you a notice of 60 days. Once the notice period is over and if the dues are still unsettled, then the bank is allowed to repossess your property. And before the bank can sell off your property, it has to serve yet another notice of one month informing you about the same.

Right to be Heard

Within the one month notice period, before the property is auctioned, a loan defaulter can file a representation to the authorities and raise objections towards selling off the property. The loan officer has to then respond to the representation and give valid reasons for turning down your objections within seven days.

Right to Fair Value

If the bank has repossessed your property due to a loan default, it does not give them the sole right to decide the sale price of the property. Along with the one month notice informing the customer about the auction of the property, the bank has to send a fair value notice that clearly states the sale price of the property as assessed by the bank officials. However, if you feel that the bank is selling it off at an under-priced rate, then you can raise objections and declare a price that you feel is reasonable. The bank has to consider your plea to receive fair value for your property and will have to revaluate the property once again.

Right to Balance

Since the rates of property are steeply rising with each passing day, there is a possibility that there might be a fair amount of balance left after the bank has settled the loan by selling off your property. You are entitled to get that balance amount as the bank has no claim on it once the loan is settled.

Right to be Treated Politely

Banks are registered organisations and can’t act like independent money lenders when it comes to a loan default. In the past there have been reports of harassment and mistreatment of loan defaulters by collection agents but now banks have decided to follow a code of conduct that is polite and respectful. A collection officer has to politely request to meet you and the place and time of the meeting can be as per your convenience. If you don’t respond to the request, the collection officer may meet you at your home or work place. Also, the agent can meet you only between 7 AM and 7 PM and can’t harass you late at night or in the wee hours of morning. The collection agents are supposed to treat the defaulters in a respectful manner without resorting to abusive language and mistreatment.

The Consequences

Loan default can have serious consequences. Not only could it result in the seizure and auction of your assets, but your Credit Score too, will go for a toss. Even rescheduling debt tarnishes your credit history to an extent and will reflect in your credit report. Obtaining a loan in the future will become an issue which is a huge financial setback. Make sure you take a loan only if you’re sure you will be able to make timely repayments. A good way to do this is to ascertain your personal net worth in terms of assets you own and the money you have at your disposal after taking stock of your existing debts and other financial commitments.

Also, if you ever default a loan payment, do not panic and remember to exercise the above mentioned rights. Check out the best deals on Home Loans, Car Loans and Personal Loans!

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67 thoughts on “Loan Default Is Not The End!

  1. BASUDEV BEHERA

    I was working in financial sector since last 5 years.as i feel incase of secured loanns we should reposses the asset atearliest.if we feel that customers is willfull we should reposses the asset soon.RBI should make mandatory for all NBFC they should go for CIBIL check before funding.if all financers are cooprerate and they should publish their default customer in leading newspaper the defaulter will be minimise to some extent.

    Reply
    1. Ram

      u speak as if you are a lender just working in the financial sector does not make you a NBFC or a bank.no one defaults on loan wantedly,many a times it is unforeseen emergency,agree few default. Moreover CIBIL is already in place for most banks and institutions.newspapers pages won't be enough to publish defaulter names.defaming someone is not a right idea,i think u still live in some stone age culture.2008 was one of the worst times, hope there are less defaulters ahead.good luck india.

      Reply
  2. mukund kumar advocate

    please give me suggestion which that a loan case from bank but borrower paid to loan and guarantor is dead however
    loan deduct is going on and rest tow parties also borrower with him . what is the remady and staertd case and relief of this condition

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Mukund,

      For any grievances regarding your loan, you can write to the bank or contact the Banking Ombudsman.

      Cheers,
      Team BankBazaar

      Reply
  3. m f shaikh

    i had home of 8 lac rs but i want to leave job but want pay emi continue by other source is that possible ?

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Shaikh,

      As long as the account from which the EMI is debited continues to have enough funds to finance the EMI, it should be all right. You just need to make sure that the account which is linked to your Home Loan is topped up with cash from your other source of income. This way, you will avoid missing any EMI.

      Cheers,
      Team BankBazaar

      Reply
  4. Dk

    I am having a personal loan from HDFC , i had paid emi of personal loan for 6 months properly (auto debit), but i lost job for which i was not able to pay emi for 3 months i received a notice from bank that my credit facility has been withdrawn and repay the total loan amount immediately by 7 days, otherwise bank’s authorised person will posses my assets. Please advie what to do, I am not i a condition to repay the total amount, i can pay 1 or two emi max,

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Dk,

      Talk to your bank and explain the situation. Try to rework the loan terms with them. Some banks agree to a one-time settlement. Check this article to understand what your options are – Loan Default Is Not The End!

      Cheers,
      Team BankBazaar

      Reply
  5. [email protected]

    I having a personal loans from nbfc companies. I got big loss in my buissness.
    So I am not able to pay balance emis. Because my all investment is sinked. I also borrow loan on
    My house.but my Friend is ready to pay my secured loan which borrowed on my house.
    What can I do. What will happened in future. I am worried about my future. Pls suggest me what can I do .

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Shsjewellers,

      Talk to your bank and find out if they will agree to a one-time settlement. However, if you are still earning money, the bank might not agree to such a settlement. In that case, ask them for extra time to repay the loan.

      Cheers,
      Team BankBazaar

      Reply
  6. Debjyoti Das

    After getting declared NPA can the borrower after clearing the dues gets the NPA status removed?

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Debjyoti,

      It is possible to have the NPA status removed. You will need to talk to your bank to see that it is done.

      Cheers,
      Team BankBazaar

      Reply
  7. munaf

    Hi,

    i had personal load with ABN AMRO bank 10 years back and paid 6 months EMI and then i had cleared full amount but i did not pay pre-closure charges of around 6000 rupees.

    2 days back i got call stating asst.commissioner of police from hubli, stating there is arrest warrant for not paying dues of Rs.80,000. i had mentioned i have already paid but he said there is no NOC from your side for Clarence of loan. me currently not in country they are asking me to talk to the lawyer who filed case against me.
    kindly help me with the next step

    regards,
    munaf

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Munaf,

      We would love to help you but due to the very specific nature of your problem, we suggest that you get legal help to sort this out.


      Team BankBazaar

      Reply
  8. robin

    i have taken ahome loan from icici bank. there are two things going on.
    1. the flat is still to be given the possession, means the builder failed to deliver the flat on the agreed time.
    2. i have lost my job and i am jobless from the past 6 months, i am trying hard to get the job but i am unable to get a job which can pay the emi.
    now i just want to get rid of the situation, i want to end this at all. i want to surrender and i know that this will down the credit history and i will be unable to get any type of loan in future but i am ready for this.
    i want t o surrender the property and feared of the thing that bank have my security cheque. whether bank will try to cash those cheques even after surrender of the property.

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Robin,

      Once you surrender the property and the settlement has been made to the bank, the bank will return all the post dated cheques you gave them. Talk to your bank to clear up any concerns you might have.

      Cheers,
      Team BankBazaar

      Reply
  9. Naveen Kumar S

    Hi,
    I had taken a loan from ICICI and Barclays bank, since there was recession in 2008 i lost my job and unable pay my loan. There after some how i managed to clear with Barclays with one time settlement. And again same was done with ICICI but still i get a call from ICICI third party members that i have due amout. But i have settlement copy of it in ICICI letter head. Now the issue is how do i get rid of this. When i checked my CIBIL is around 618 but the it shows Barclays bank “written OFF” as “Settled” Kindly help me on how do i get it removed from CIBIL so that i can get a loan in future.

    Awaiting for your valuable feedback.

    Thanks
    Naveen

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Naveen,

      You can contact CIBIL with the copy of your settlement letter. They should be able to help you by updating your credit information. You could also try talking to ICICI bank to let them know that you are still receiving calls. Check this link to know how to correct errors on your CIBIL report.

      Cheers,
      Team BankBazaar

      Reply
  10. shashi kumar

    I have taken loan about 8 years back paid for 15 months and defaulted due to financial issue and could not continue to make payments. after 8 years I got call from collection agency and asking to settle for the principle amount that is currently due. but I dont have that much of money to pay.what are my options

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Shashi,

      Please talk to the bank and explain your financial situation. You can ask them for an one-time settlement. If they don’t agree to this, you can ask for a tenure extension.

      Cheers,
      Team BankBazaar

      Reply
  11. Arnab

    Hi,
    I had taken personal loans and loans on credit cards. Total amount outstanding is approx 25 lakhs, and the EMI amounts have become double of my income due to improper planning. My net take home is 60k, and the EMI amount has become 1.2 lakhs, and I am in no position to pay all the EMIs. I have no assets to take a secured loan. I asked banks to restructure my loan for long term but they are saying that they don’t have any such provisions. What can I do now?

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Arnab,

      Talk to the bank to consolidate your debt instead of restructuring. Explain your financial situation to them and check if you can get a tenure extension.

      Cheers,
      Team BankBazaar

      Reply
      1. Arnab

        The banks are saying that I already have twice of the required exposure. Also, they are not ready to consolidate or restructure. What to do?

        Reply
        1. Team BankBazaarTeam BankBazaar

          Hi Arnab, You could try to get a loan against any of your assets to settle your debts. Talk to your bank to see how you can take things forward.

          Cheers,
          Team BankBazaar

          Reply
          1. Arnab

            I do not have any assets like gold, property, shares, etc to take loan by giving collateral. If I had, I would have done it till now. What are the options in my hand? Please help.

          2. Team BankBazaarTeam BankBazaar

            Hi Arnab,

            You could try talking to your bank for a one-time settlement or ask for a tenure extension. If nothing works, we suggest that you approach your legal counsel for help.

            Cheers,
            Team BankBazaar

  12. vicky Raj

    i have taken loan and last six months not paid emi because I was sick and lost of my job. I want to settled that. Before settled can I get the job in any bank? Please guide me.

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Vicky, If you want to work in a bank, it is better for you to settle the loan as banks sometimes look at your Credit Report before recruiting you. Your loan default will reflect on your Credit Report and might make it tough for you to land that job.

      Cheers,
      Team BankBazaar

      Reply
  13. Vikram Raj

    Sir I have taken PL. I paid six emi only and nptpaying for last six months. Because I have lost job and till now I am unemployed. Can I do the job in any banking or finance sector? Please help me what I should do?

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Vikram, Loan defaults might be an issue for you if you want to join a finance firm. Banks and financial institutions usually look at your Credit Score of an applicant before granting them a job. We suggest that you clear your loan before applying to lower the chances of rejection. Try asking your bank for tenure extension for your loan.

      Cheers,
      Team BankBazaar

      Reply
  14. Dr.shrutidabi

    I my oneof family member took education loan in 2009 for studying merchant Navy course from Pondicherry by default he is not able to get settled in that job so presently working as a hotel manager . Till now he is paying for his loan n loan which he has to pay is 2lakh (e.m.i. Everything including) . But sir his family is not rich enough to pay this also yet n presently bank had took an action against him now he had a lawer cause he had to go to court every month . Sir is there anyway to settle this loan as he had taken education loan not home loan or car loan… Please guide us

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Shrutidabi,

      We suggest that your family member talk to the bank and ask for a tenure extension or an EMI holiday. If he has enough money, he can ask for an one-time settlement. It might be less cumbersome to talk to the bank rather than going the legal way.

      Cheers,
      Team BankBazaar

      Reply
  15. Keshav

    I have pledged my jewels worth Rs 1 lakh and got a loan of Rs 30000/. I failed to repay the jewel loan. In the meantime, the bank shifted its premises and in that process it lost the jewels packet pledged by me. The bank went to court to recover the dues. Please discuss what could be the decree.

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Keshav, The bank takes collateral so that they can use it in case of a default. Since you didn;t repay, the bank will have to use the jewels to recover the loan amount. We suggest that you get legal counsel to understand how you can resolve this.

      Reply
  16. vishwas

    r/sir
    i took education loan in 2009 for b.tech course from bank of india. I completed b.tech in 2013 with 81% marks but did not get a job in market.so,i opted to move towards banking sector job.recently i cleared sbi clerk exam,now i paid the whole amount through one time settlement on 29/11/2016.One thing is mentioned in sbi notification that is we disqualify loan defaulters during document verification.i wan to know”will they disqualify me or not?”

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Vishwas,

      A good Credit Score is important for some professions. Since you are considering joining the banking industry, they may factor in your credit history and repayment capacity on loans. A One-Time Settlement, though not a default will reflect on your credit report. The job offer will ultimately be at the discretion of the bank.

      Reply
  17. rishabh srivastava

    I have a housing loan which Is declared NPA. Can I get a Education Loan keeping that as a colleteral?

    Reply
    1. Team BankBazaar

      Hi Rishabh, It may not be possible to use your house to get another loan as the housing loan on it has been declared as a NPA.

      Reply
  18. Vinoth

    One of my ex colleagues has forced me to apply for 2 personal loans from Axis(Rs.385000) and HDFC (Rs.1,25000) and 3 credit cards to do a business. Apart from that I have Home loan on my own. Paying Rs.4500 emi per month.

    Initially he was helping me with the EMIS and bills but now stopped giving me the amount. Because of which I’m defaulting axis bank emi for 5 months and 3 credit card bulls.

    My bank is not givving me other options like emi reduction. What should I do mange my EMIs ? (3 ccs with Rs.85k, 45k &55k outstanding, one home loan 3 lks. And 2 PLsof 3.85 lks from axis&1.25 lks HDFC. salary: 25k)?

    EMI’s per month:
    Axis PL – 10,700
    HDFC PL – 3322
    Home loan – 4500
    3 credit card bills – 184000

    How can I negotiate with my bank to pay the EMI according to my income?

    My income: Rs.25k

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Vinoth, You will need to explain your situation to the respective banks. They’ll be able to help you with your situation. If you are still unable to sort this out, we suggest that you get legal counsel or contact a financial advisor. Cheers, Team BankBazaar

      Reply
  19. Sridhar

    Hello Team,
    i have 3 credit cards and 2 loans and was using credit cards since 2009, and i was a prompt payer untill 2016 with a CIBIL of 810 but now my finances has turned upside down due to which i am unable to pay any of the bills ,

    please suggest me with any option to pay off the existing debits as this has become a torchure emotionally and mentally

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Sridhar, Try explaining your situation to your lenders. They’ll might be able to help you with with a plan to pay of your debt. Read this article for some more tips on managing your debt. Cheers, Team BankBazaar

      Reply
  20. narayana rao

    The dharnas by the bankers to recover the dues from defaulters , is it legally allowed.

    Reply
    1. Team BankBazaar

      Hi Narayana,
      Banks can sell the asset attached to a loan to recover the loan amount. However, threatening customers is against the law. If you feel that you are being treated unfairly when you have genuine reasons not to repay a loan, please get legal counsel.
      Cheers,
      Team BankBazaar

      Reply
  21. Sabari

    I bought a education loan in SBI in 2009-2013(Rs.3,45000) as a joint account with my father. Due to default my account changed to NPA & handed over to Relaiance ARC. Shall my father is eligible for getting Personal/Housing loan now…?

    What will be the impact of CIBIL Score in it…

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Sabari,

      Defaults do affect one’s Credit Score. We suggest that you ask your father to get his Credit Report before applying for any loan.

      Cheers,
      Team BankBazaar

      Reply
  22. Harpal singh Bassan

    Hi,
    i had booked a flat in Hiranandani palace gardens , panvel in 2009 , possession of which was promised in 2012.

    I had procured a loan from M/s Axis bank and had been paying regular instalments till nov 16. Since the builder has failed to deliver as yet and there is no indication of it happening in the next 2-3 years, I have been unable to keep up with the monthly emi.

    95% of the total amount has been released to the builder by the bank. I have requested the bank to give me a moratarium from the monthly payments till the time the posession has been received, as the bank is also responsible by not being diligent in checking the status of the project.

    I have since received a notice from the bank declaring the asset as npa.

    Can you please advise me on my options.,

    Thank you.

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Harpal Singh Bassan,
      You could try contacting other buyers and speak to the builder as well regarding this. We suggest that you consider getting legal counsel as well to sort this out.
      Cheers,
      Team BankBazaar

      Reply
  23. Jnanesh

    I have personal loan from HDFC which is four lakhs, credit card from HDFC which is not paid and now the amount is around
    1,60,000. Also one of the credit card from Indus Ind which amounts to 1,40,000. I have loan from peer to peer lending website
    which is 4 lakhs. I have education loan, loan from relatives, friends and colleagues. The total loan amount might come up to 25 lakhs. I am in no position to pay all of them in near future. I want to clear loans taken from relatives, friends and colleagues first as I have to live among them. What can I do in my current situation? Can I declare bankruptcy? I just want to get rid of this mental stress I am going through. I am just 23 and I am in deep shit because of some hasty decisions. Please help me. Can I declare bankruptcy even if I have a job?

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Jnanesh,

      We are very sorry about your situation.
      While we do provide general tips and advice on personal finance, we will not be able to provide guidance on specific queries. We would love to help but due to the specific nature of your question, we suggest that you get legal counsel or consult your financial advisor to sort this out.
      Good Luck.

      Cheers,
      Team BankBazaar

      Reply
  24. skumar

    Hi..Can i Voluntary surrender a property to bank as unable to repay home loan against it ? Whats the process ? will that avoid legal process..? Thanks in advance!

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi skumar,
      It is possible to ask your bank to take possession of the property for which you got a Home Loan. However, talk to your bank and explain to them about your financial situation. They might be able to provide a better solution.

      Cheers,
      Team BankBazaar

      Reply
  25. naresh

    I have loan for 3lacs but now bank is coming for 1 time settlement. it is ok for me but i dont have the money to pay. i have land which trying to sell and settle. but bank people are pressing for settlement i told them i will pay emis further and settle once my land disposed. but they are not accepting what to do?

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Naresh,

      You will have to tell the bank that nothing can be done unless you liquidate your asset (in this case your land). And if you think the bank is being unreasonable, then you’d better seek legal counsel to deal with them.

      Cheers,
      Team BankBazaar

      Reply
  26. David

    We have a term house loan from sbi . For the past 2 years we paid the emi without any issue . Now due to heavy money crisis i stopped paying the emi and now it/s 6 months . Now the bank sent a legal notice to us . Now i am ready to pay the past 6 month emi but the bank refuse to accept my amount they asked me to pay the full settlement or else they said they are going to auction . What should i do ? Any advice please .

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi David,

      Try talking to your bank and explain your financial situation. You could write to the bank headquarters too. If nothing works, we suggest that you contact your legal counsel for help.
      Cheers,
      Team BankBazaar

      Reply
  27. Sumant Mishra

    Hi!

    I took a home loan on a property from axis bank. I’m unable to pay my emi. I’m ready to give away my property to the bank for auction. What will happen if the auctioned value is less than the amount I owe to the bank? Can the bank come after my other assets(bank account, other property, etc) that were not attached with this loan?

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Sumant Mishra,

      Unfortunately, that is a possibility. If the loan amount of the bank is not fully satisfied through the sale proceeds of your mortgaged property, the bank can file an application before the Debt Recovery Tribunal having jurisdiction or a competent Court, as the case may be, for the recovery of the balance amount. This may include attachment of your other assets as well. We recommend you to contact a lawyer for an expert opinion on the matter.

      Cheers,
      Team BankBazaar

      Reply
  28. Vinay

    Dear Sir/Madam,

    I have been laid off by my company in May 2016, since then I am either in bad luck or whatever you have to say. I have not been able to get a job at all…I have tried all kinds of things including trying to setup my own business, but in vain, I am right now jobless for more than a year, after working for 10 years its like a stand still.

    Anyways that’s way too personal, the reason I am writing this is I had taken a personal loan from HDFC bank for 1.8 lakhs, Outstanding loan amount is 1,10,000/-. HDFC Credit Card Outstanding amount of Rs.28,000/-.
    After my job lay off, I was in no position, family deserted me, etc..I did not contact the bank or pay any EMI’s…. I got a call from a Legal person a few weeks back asking me to pay the same at any cost. I have no job for the past more than 11 Months, no person or family supporting me. How will I ever repay the amounts, I agree after getting a job I will surely repay the amounts one by one. Can you suggest me what to do ?.
    I need at least 2 years time for settlement.
    In short I am in no position to pay any amount what so ever, U cant imagine how I am surviving.
    I dont have any assets also…I have heard that there is a way to stop the loan and repay once I get a job. Do let me know those details.

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Vinay,
      Really sorry to hear about your situation. We hope things look up for you soon – we’re keeping our fingers crossed. For the time being, here’s what you can do.

      You can either approach the banking ombudsman to get extra time for repayment of the loans or get help from your legal counsel. Try these if your bank refuses to give you more time to repay your loans. However, you need to write to your bank’s headquarters before you try them.

      All the best!

      Cheers,
      Team BankBazaar

      Reply
  29. nabab

    Sir I hv taken a personal loan of 2 lakh from icici bank eight month ago for five years tenure. I regularly paid emi eight month . But now I lost my job for my serious health issue. I m just 23. My family condition is so poor.. now I m unable to pay emi … please give me solution…..

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi nabab,
      You can either approach the banking ombudsman for getting extra time for repayment of the loans or get help from your legal counsel. Try these if your bank refuses to give you more time to repay your loans. However, you need to write to your bank’s headquarters before you try them.
      Cheers,
      Team BankBazaar

      Reply
  30. Arun

    I have late on my credit card and consumer loans , since last more than a year i am not paying , just wanted to ask if i will pay all my outstanding after how much time my cibill scores will be good to apply for a credit card or personal loan . Note i will be paying full amount with interest and all

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Arun,

      Your Cibil score gets updated on a monthly basis. You will be able to see the score after a month when you’ve paid your dues. All the best!

      Cheers,
      Team BankBazaar

      Reply
  31. jay

    Hi,

    I need some advice on this….
    I was using SBI and HDFC credit cards for about 4 years and was paying all dues before time, mostly in one shot. Have never missed on any payments. This was until i lost my job in June 2016. I some how was able to mange until Dec 2016 however, later I was out of any funds in flow and till this day i haven’t been able to find a job. Both SBI and HDFC did give me breathing time until Jan 2017 however, later they started treating me like all time defaulter and some executives have spoken so rudely on call as if the BANK din’t , they lended the money. HDFC kept my saving account on hold and later they debited the funds available in that to my credit card which I had kept to pay off phone bills, baby food and daily living (Not much , it was jusy 9k) .

    It is not like post Jan 2017 I have not paid anything. I have tried to pay a little more than my minimum until May 2017. Now i have no source of income and i have no clue what should i do .. getting a job is my top priority but then all this situiaiton is nerve wrecking my mind. I even tried applying for loan but then it got rejcted due to non payment of credit card bills (CIBIL score was down to 300, where in it used to be 870). If anyone can tip me with me anything they know how to solve this.

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi jay,

      We’re very sorry about your situation. To straighten things out, we suggest that you put in all your effort into finding a steady and good job ASAP. This should sort out 90% of your problems. Once you have a job in hand, you can then reassimilate your financial capability and start the repayments accordingly. And once this is done your Credit Score will improve gradually.

      All the best!

      Cheers,
      Team BankBazaar

      Reply

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