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

[Dr. Ashok Dhamija]

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.

     

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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. List of his Quora Answers. List of his YouTube Videos.

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