Dear Sir, in case of loan default, the bank will go after your collateral security which you have mortgaged while taking loan. But before.anything else, they shall give counties for pending EMI's and penalty rates.

You will need to pay the loan otherwise they will attach your property and will auction it.

Hi,

There are various remedies to banks to recover the money. You may protect yourself by restructuring the loan.

1. The bank can file a suit for recovery of money against you as it is an unsecured loan.

2. The civil court can pass a decree for recovery of money with interest and legal cost against you but it will take at least a year for the court to pass a decree.

If you are unable to repay the personal loan bank can sue you to recover money with interest

2) if you have issued any cheque’s bank can present cheque for payment and if dishonoured file complaint under section 138 NI against you

Bank can sue you to recover the money with interest

If you've lost your job, but are confident of getting a new one within six months, you can ask the bank to offer you a moratorium for this period. However, if your finances are strained due to some other reason, such as the EMI going up because of a hike in interest rates or increase in personal expenses, ask the bank to restructure your loan. To either reduce the EMI or keep it at the same level despite a higher interest rate, you could increase the loan tenure

This mode of recovery which the Bank can resort to, depends on the loan agreement they signed with you.

The Bank has to act strictly in accordance with the Loan Agreement.

Since this was an unsecured loan, I think they will resort to an arbitration.

In case of the insecure the loan the bank may appoint the arbitrator as per the loan agreement (generally), thereafter may get an order from the arbitrator

After the order of the arbitrator the bank may file a petition for execution of the order of the arbitrator and may then get your property attached.

the same is a lengthy process.

Regards

Sir they can file a.recovery suit in court or DRT based on the amount further the court can give possession of your property.through attachment.

Yes they can attach the property.

Yes it is insecure loan but the property can be attached for recovery of loan amount even if not mortgaged.

Yes, then it wouldn't require any personal loan. However, at best they are going to send you notices only. And you can look into your loan agreement more carefully to see.what would attract in case of default.

They can attach your properties movable or non-movable steps like arrest of the person or coercive steps are the later part of this process.

1. Since personal loan does not stipulate keeping any collateral security, you do not have the immediate danger of being evicted from your mortgaged house for being a defaulter.

2. The bank shall have to file a money suit against you for recovering the outstanding amount from you by selling your assets and it will take years for the case to be disposed of.

3. You can offer one time settlement proposal to the bank offering to pay whatever reasonable you think that you shall be able to pay. Ordinarily, OTS proposal is submitted for paying the amount much less than the outstanding shown in the bank records.

1. Bank shall have to file a Money suit against you for recvovering the said amount.

2. Act as advised in my earlier post.

The bank will follow the legal process by filing money recovery suit.

Of course this process may take at least one year to get disposed so you will behaving breathing time, by which you can arrange money for repayment.

But sir it is a personal loan so when I take those loan not required any mortgage, because personal loan is insecure loan.

the lender bank will follow the civil money recovery suit procedure, hence you await for them to initiate the process.