Personal loan taken from bank without surety, what happens on default?

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This topic contains 1 reply, has 2 voices, and was last updated by Dr. Ashok Dhamija Dr. Ashok Dhamija 6 months, 2 weeks ago.

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  • #2165

    Anonymous
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    I had taken a personal loan from HDFC bank of Rs. two lakhs. There was no surety for this loan. I was regularly paying the instalments for about one year, however right now I am facing some problems due to financial hardships. Two monthly instalments are now pending for payment and the bank has sent me a notice. What action can be taken by the bank against me if I am not in a position to repay the loan due to financial hardships keeping in view that there is no surety for this loan?

  • #2170

    The bank may file recovery suit against you for recovery of the loan amount due along with the interest. Some of the banks are also notorious for using strong-arm tactics by using goons to recover the loan amount; so, beware of that.

    It may be advisable for you to continue repaying the instalments and/or negotiate with the bank for one-time settlement of the loan along with interest.

         


    Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles.

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