Today, due to easy loan, everyone plans to buy their own house. In this case, people collect a lump sum from their savings for the down payment, but they resort to the bank for the remaining money according to their ability. In such a situation, think that after a lot of effort, when you get your house and after that what will happen if you are not in a position to pay EMI?
Suppose you lose your job after getting the ownership of the house, then what will you do? This will be a very serious situation for you. In such a situation, your financial situation will be bad, but you must have been in a position to not pay the loan. In such a situation, it is very important for you to know what you should do in this situation.
What happens on the delay in loan repayment ?: According to the Reserve Bank of India (RBI), if any amount or EMI is not repaid in respect of the loan for 90 consecutive days, then it is known as Non Performing Assets (NPA). Is assumed In such a situation, the bank will send a notice to the account holder, in which it will be asked to pay the total amount of the loan at one go. If you do not do this (repayment of loan), the bank can also threaten you with legal actions.
All Bank Personal Loan Interest Rate
What happens when you don’t repay after taking a loan ?:
In case of non-repayment of the loan, the bank sends you a notice first. Two months after the first legal notice is sent (after five months of non-payment of loan), the bank sends you a second notice. The bank tells you through this notice how much your house is worth and how much it has been put up for auction. The auction date of the house is also confirmed, which is usually one month after the second notice is sent. Generally, most of the housing loan cases are not related to NPA. Therefore, banks do not take immediate action in such cases, instead they keep constant pressure on the account holder. But despite all these, if the account holder does not give any reaction, then banks use legal proceedings.
What can banks do ?:
Parliament passed a law in 2002 for the defense of lending agencies, which was called Survey C. According to this, if the home loan is not paid, the bank can seize the property and auction it. However, before taking this action, banks also consider other options. The main job of banks is to get the loan amount stuck back. However, in some circumstances, banks adopt the ultimate option. Because the primary job of the bank is to give loan and get it after a fixed time period.
All Banks Home Loan Interest Rate
What happens after property auction ?:
However, even after auctioning the property of the borrower, banks do not get the agreement. If the bank sells your house through an auction, then in that case if the amount received in the auction sits higher than the bank’s loan on you, then the remaining amount has to be returned to the bank’s (borrower) account. But if in contrast, you get less amount than the loan you have received in the auction of your property, then you will have to pay the remaining amount to the bank.
Own point: The bank first sends a warning notice to the guarantor of the home loan. In the event of non-response to this notice, the bank takes possession of the property under the Securitisation Act. After taking possession of the property, the loan amount is redeemed by auctioning it. On the other hand, if someone does this in the case of personal loan, that is, he does not repay the loan, then a complaint is made against him in the civil. After this complaint, that person is not entitled to get a loan from any bank of the country. Personal loans are usually small amount, so complaining about it in civil is enough.
There are two types of loans, one secured loan and the other unsecured loan. Secured loans include home loans, gold loans, mutual fund loans, auto loans and mortgage loans. At the same time, personal loans and education loans fall in the category of unsecured loans.