News India Live, Digital Desk: Personal Loan: Sometimes there are situations in life when a sudden large amount is required, whether it is for medical reasons, for education or for an emergency. At such a time, many people take personal loans because this process is relatively easy and quick. But the interest rates are slightly higher, and if you do not pay your installments (EMI) on time, it can have major results.
If installments are closed then the bank’s action starts.
The bank does not stop the loan when the loan cannot be repaid on time. Paying personal loan has a direct impact on your credit score. Your CIBIL score deteriorates and it becomes difficult to get loans from any bank in future. Not only this, the bank can also file a case of fraud under Section 420 of the IPC and there is a possibility of sending you to jail through judicial process.
Property and salary can also be confiscated.
If you do not pay your personal loan continuously, the bank can go to court and confiscate your property. After such a decision, your property such as your house, shop or agricultural land may be auctioned. Along with this, your salary can also be confiscated by court order. Therefore, when it comes to repaying the loan, the phone call or SMS does not eliminate the problem, but it can turn into a financial crisis.
Recovery agent stress and psychological crisis
Sometimes banks send recovery agents to recover the outstanding amount. This may cause the customer to face mental stress, discomfort and insult. In such cases both the reputation and belief of the people are at stake. But remember that banks and agents cannot treat you badly.
RBI clear rules protect consumer rights
The Reserve Bank of India (RBI) has clarified that the bank will have to give written information to the customer before recovering the money. They have no right to threaten, insult or force someone. If an agent abuses you, you have every right to complain. According to RBI guidelines, it is necessary to protect the rights of consumers.
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