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can bank take land if someone has taken Kcc loan and unable to pay?

namaskar, can bank take property if someone has taken a loan and unable to pay. what will be the procedure for bank to take over the property and will they notify the landowner before takeover the property please suggest. thanks nd regards.


 2 Replies

Hemant Agarwal ( Mumbai : 9820174108)     30 May 2020

1. IF Loan amount is outstanding for over Three months, THEN it will be declared as NPA, Notice issued, Court Procedures & finally Auction Proceedings.

Keep Smiling .... Hemant Agarwal

Virtual Legal Assistant (.)     09 June 2020

Hi Sir/Maam,

When a borrower fails to repay the loan amount, depending upon the category of the loan it can be recovered by the bank. It appears that the facts are not clear, as the category of loan is not specified.  

Considering the said property as a loan guarantee. If the borrower fails to repay the loan for more than 90 days, the creditor may issue written bank’s notice. According to the Reserve Bank of India, an account becomes non-performing if instalment or interest remains unpaid for more than 90 days.

The Preliminary step by the lender is sending a legal notice to the borrower mentioning the amount overdue with penal interest. If the borrower fails to repay the loan even after receiving legal notices, the lender can sell the said property and recovers the loan amount.

For all the borrowers, the lender sends their repayment records to CIBIL. As soon as the borrower defaults his EMI, it is reported and as a result credit score comes down by some percentage. Whenever a person approaches a financial institution for any loan, their credit record is one of the first things that the lenders consider. I hope this helps


Rohan Gupta

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