In today’s world, taking a loan to fulfil various needs has become very common. Banks that provide loans give customers a fixed time to repay the loan and charge interest. If a person fails to repay the loan on time, the bank can take action against them. However, in such situations, customers also have certain rights that they can use to protect their dignity and their family’s well-being, while also avoiding financial stress.
Right to Negotiate with the Bank
If you are unable to repay the loan, you can negotiate with the bank and explain your situation. Make sure all communication with the bank is in writing, such as through a letter or email. You can request more time to repay, along with the penalty. The bank may give you an extension of up to 90 days. After this period, you can ask the bank to restructure your loan, which could reduce your EMI and extend the repayment period.
Keep Trying to Pay Your EMI
During this time, it’s important to continue making efforts to pay the missed EMIs. You can withdraw money from your savings account, FD, or mutual funds to help with the payments. You can also ask friends for financial support. If you miss EMI payments for 180 consecutive days, the bank has the right to seize your property. However, in such a case, you can negotiate with the bank to mortgage any of your properties.
Right to Respect
Remember, banks do not want to get involved in these situations as they must maintain their Non-Performing Assets (NPA). If your past record is good, the bank will likely cooperate with you. No bank can mistreat a customer who is unable to repay a loan. If a bank employee or officer misbehaves with you during loan recovery, you can file a complaint. Additionally, if the bank hires an agent for loan recovery, the bank must share all information about the agent with the customer.