Know Your Rights As A Loan Defaulter

Loans are our biggest liabilities that needs to get repaid on time. In fact, right from chalking out a perfect strategy for taking a loan till it is actually approved, is a cumbersome process. And then unemployment, job loss and other misfortunes could seriously pose a hurdle in the repayment of loans when we are tagged as ‘loan defaulters.’ Banks or non-banking Financial Institutions (FIs) start the recovery proceedings of their dues in case of a default. That said, in any action initiated by the banks or non-banking financial institutions, it must be pursued in accordance with the procedure laid down by the law. As per the experts bypassing of the procedure would entitle the borrower or loan defaulter to use the same as a defence. There is a set of rights which a loan defaulter can excercise to seek protection. “When someone defaults on the loans, prima facie, she...