Personal loan/cc default

ROHET (Querist) 04 January 2023 This query is : Resolved
Hi,

If someone default on PL/CC, what are the actions can be taken by the bank.

Is police role involve in Loan Default matters? What r the guidelines for Collection agency by RBI.

Please revert asap.

Thanks,

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Quick Summary

If you default on a personal loan or credit card, banks will typically seek to recover the debt by auctioning any mortgaged property through the Debt Recovery Tribunal (DRT). The police generally do not get involved in loan default matters. The Reserve Bank of India (RBI) has guidelines for collection agencies, and banks must approach the court for recovery proceedings.

kavksatyanarayana (Expert) 04 January 2023
The loan amount will be sanctioned on the property(immovable, and sometimes movable also), so they will auction that property through DRT. But the police role is not involved.

Advocate Bhartesh goyal (Expert) 05 January 2023
Generally Banks/Financial Institutions sanctioned the loan on basis of equtable mortgage of property of borrower/guarantor and in case borrower does not repay loan amount then bank can auction the motgaged property to recover loan amount.

SHIRISH PAWAR, 7738990900 (Expert) 05 January 2023
Hello,

Yes banks will try to recover the loan / finance by realising the mortgage. Police has no role in bank loan recovery. For recovery bank has to approach the court.

Sudhir Kumar, Advocate (Expert) 05 January 2023
Why do not you come clear with facts

repeated https://www.lawyersclubindia.com/experts/personal-loan-cc-default-746501.asp

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