What Banks can not do for loan repayment?

Repaying the loan is a good practice it will increase the trust of the bank in you and also help in the future loaning process so we will never encourage to not to repay your loan because it is the primary responsibility of the borrower to repay all dues on or before time.

Some time due to bad financial status or any accident a borrower cannot repay a loan on time so he starts getting some unknown calls online and got threaten.

During this pandemic, many people are suffering from economic crises. Many of them are not able to pay their Installment of the taken loan at the given time. It is very important to know your rights for the bank, so you will not threaten by anyone.

So, Don't worry, here are the 5 things that banks can't do despite your loan default.

Bank can not register F.I.R against you at the Police station.

We all know that Defaulting is not a criminal crime, it is a civil crime so Bank cannot go to the police station to lodge an FIR against you. But, if a loan default occurred intentionally then it would be a fraud and Bank can go to the Police station and the Police can arrest you also.

Note: Intentionally fraudulent means submitting illegal documents to the bank or the borrower has done many such frauds with the bank in the past.

What banks can do to recover the amount...

Bank can not claim any relative's property.

Bank cannot claim possession on your relative's property ( ex.- Wife, Father, Mother, Brother, etc.) until and unless he does not gift or sell his mortgaged property to anyone.

Bank can not file a civil recovery suit after 3 years.

Bank cannot file civil recovery suit in Civil court after 3 years from the due date of loan repayment under refer the Schedule of periods of Limitation given in the Limitation Act, 1963.

Bank can not threaten you or do unlawful activities in the name of recovery.

Recovery agents of Banks cannot threaten, beat or abuse you for loan repayment under the guidelines of RBI. Bank also cannot mentally torture you over phone calls and frequently visiting at your home.

Banks can not take away your legal rights.

No bank can take away your legal rights against any services of the bank. You have the right to seek Police help in case of torture and threaten calls from bank and bank recovery agents and you may file a case in Consumer Commission for unsatisfied services provided by the bank. You can also seek compensation from the bank for any mistakes made by them.

- Chanchal Singh