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Kiran Kumar (SE)     17 June 2011

What wil happen if a person unable to pay personal loan


I lost my Job and since two months i am unable to pay personal loan which i had taken from Citi Bank, Bangalore , They tried calling and i informed that i dont have job and i need time .

Due to some personal issue i dont want to do any job , no what will happen if am not paying loan.


 8 Replies

A V Vishal (Advocate)     18 June 2011

The bank can take coercive legal steps for recovery of the amount from you.

RAJU O.F., (Advocate)     18 June 2011

If bank is having your signed cheques, they may present it with claim amount and if cheque is bounced, they can take criminal actions under Sec.138 of N I Act. These banks are also engaging recovery agents, who are normally similar to goondas.  It is better to somehow settle the dues amicably directly with the bank, to avoid unpleasant situations.

Kumar Doab (FIN)     19 June 2011

If you taken the loan, you have to repay the amounts pledged by you.

Bank should not coerce or threat on intimidate you.If they do so you can lodge a complaint with police.

You have attended to their calls. Maintain record i.e. date, time,phone number from whcih the call was made, name department,designation, address of the person who called you, and your phone number at which call was made. Bank is suppossed to supply you ther complete details of the recovery agency, if any employed by them.

Talk to the bank and find your ways and menas to repay the settled amount.


The Bank may adopt several methods to recover its outstanding sums. The Bank may sue in Civil side as well as in Criminal side.

Johndel Clay (Account Officer)     22 June 2011

Probably, the bank may take legal actions from you.

sanjay kumar (BE/ LLM in Corporate Laws)     24 June 2011

Did any one sign the Surety Bond against your personal loan. If yes, then Bank will first approach the surety to pay the loan. The surety is legally bound to pay the amount he/she has stood surety for.

Otherwise, bank has several options, the other learned members have pointed out.

In case you are in financial distress, do negotiate with your bank if they can reduce the EMI for some time and extend the tenure of the loan.

But a complete default from your side will make you liable for any criminal action, the bank may take against you.

kush (director)     30 December 2013


I got some loss in business so i am not able to pay my personal loans. amount of personal loan is 2 lakhs and i have  two personal with different banks. I have not been paying EMI since last year. so I want to know what type of actions they can take and what should i do in this condition?

please help me.

Chetan   26 August 2016

Dear All

Please guide me on how to proceed further about not able to pay my Home loan, Top up loan, Personal loan, Auto loan emi from next month in job loss case. Its very urgent.



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