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devendra   25 June 2017

1st emi loan defaulter

What action to be taken on the borrower who has failed to pay even 1st Installment of Personal Loan and not coming to office immediately after receiving loan cheque 



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 6 Replies

Ms.Usha Kapoor (CEO)     26 June 2017

For what  purpose personal loan was taken?. Is it  is for Buying  a Car or Housing loan or  some other item.You send your recovery agent and find out  the reason for non payment of  First installment. If  car or House  or other Tangible things are  hypothecated by you for repayment  of personal loan in exchange for the item you can seize b Hypothecated item under loanee's possession and also loanees collateral security you must have taken at the time of advancing the loan and sell off and  out of sale proceeds get your payment of entire loan..If  still any shortfall is there you can  file a money recovery  suit.against  the borrower.

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G.L.N. Prasad (Retired employee.)     26 June 2017

Once a defaulter is always a defaulter.  There is no difference whether it is first EMI or remaining EMIs.  The institution has to follow the laid down procedure for recovery, as still the asset is new and recovery chances may be bright if auctioned.

1 Like

devendra   26 June 2017

Thanks for the reply.

The Personal Loan was given by Employees co operative credit society for the Personal needs and we are two guarrantors for the same. the Borrower after receiving the Loan cheque not coming to office and credit society asking us for repayment of EMIs for last six months. They have not taken any action on the borrower since last 6 months and directly issued notice to guarranters. Borrower is having house and we have asked society to recover by morgarding the house. What else we can do?

devendra   26 June 2017

Thanks for the reply. 

The Personal Loan was given by Employees co operative credit society for the Personal needs and we are two guarrantors for the same. the Borrower after receiving the Loan cheque not coming to office and credit society asking us for repayment of EMIs for last six months. They have not taken any action on the borrower since last 6 months and directly issued notice to guarranters. Borrower is having house and we have asked society to recover by morgarding the house. What else we can do?

P. Venu (Advocate)     26 June 2017

The guaranteers are liable; of course, they can move in a civil action against the borrower.

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Advocate Bhartesh goyal (advocate)     26 June 2017

credit society has legal right to recover the loan amount with interest and expenses either from borrower or from guarantor .
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