If u have taken any type of loan from bank or any financial institution then you must read this blog. In this i will tell you the rights available to the person who is unable to pay back his amount of loan.
Here i will tell you the five rights of Loan Defaulter :-
Right to Notice :- Banks has to give time to the Loan Defaulter for the repayment of loan. Under 'THE SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT, 2002' if the account of the borrower falls under the NPA (Non-performance asset) where the payment is pending for more than 90 days than bank has to give a 60 days notice to the defaulter for the repayment of the loan. Bank can't sell your property without giving you the above notice. And A 30 days public notice is also given by the bank in which their is all details available for the sale of that asset.
Right to estimate true value of asset :- If you fails to repayment of loan amount or fails to give reply to bank then lender will start to auction the property for the recovery of the amount. Before this auction, lender has to give the second notice to the borrower in which the information about value estimated by the valuers of the bank, date and time of auction is given. True value of property is estimated by the valuers of the bank. The borrower can raise objection if true value of the property is not estimated by the valuers of bank. Borrower can also suggest purchaser to lender who is offering more value of property from that estimated value.
Right to receive the remaining amount :- Lender has to refund the excess amount (if any) arises from the property after deducted or recovering the amount of loan. The recovery amount includes the amount of loan, interest till date upon that loan and the expenses arises in the auction of that property. After deduction of all such amount the remaining amount (if any) must be given back to the borrower.
Right to hearing :- During the notice period, in front of the authorized officers you can give your views and tell them the difficulties relating to the notice of capture of property. Authorized officer has to give the reply of that within 7 days. And if such officer dismissed your application he has to give a valid reason for that.
Right of human behavior :- Banks or officers of banks has to behaved well with the borrower. Banks has promised to give the best practices in their code of commitment. So no bank or officers of banks can treat you as a slave even though bank has given loan to you. Banks or officers of banks can't treat the borrowers as they are inferiors & can't violates any human rights. Agents can contact with borrowers only at the place where borrowers likes and if borrowers didn't tell such place to the agents then they can meet or contact with borrowers at their home or work place. Agents can contact with borrowers only between 7 A.M to 7 P.M.
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