Lap - have loan against property
9 months ago
I have loan against property, due to business loss I am unable to pay emi, my family members saying settle the loan by one time settlement, but my bank not giving OTS, what I want to do
A.Dear client,
The Supreme Court has ruled that no court can direct a bank or a financial institution to offer OTS to a borrower when the bank or FI is of the opinion that it would be able to recover the amount through auction of assets.
When you miss a few EMIs on your loan, the lender typically begins the recovery process after sending you multiple notices. In the case of secured loans such as home loans, two-wheeler loans, and car loans, the bank can take possession of the asset as per the SARFAESI (Securitization and Reconstruction of Financial Assets and Enforcement of Security Interests) Act.
However, the lender cannot start the repossession process without giving you sufficient notice. If you fail to pay the outstanding amount within this time, the lender can initiate the recovery process and take possession of the asset. In addition to the notice period, the lender must also follow other legal procedures and guidelines specified under the SARFAESI Act before initiating the repossession process.
In the case of an unsecured loan, the lender can take legal action against the defaulter by approaching the court to recover the outstanding amount. The court will then issue a notice to the defaulter, requiring them to appear in court and present their case. If the court finds that the defaulter has a genuine reason for not repaying the loan, it may provide them with protection and assistance.
However, if the court finds that the defaulter has no genuine reason for not repaying the loan or is engaging in fraudulent activities, it may rule in favour of the lender and allow them to recover the outstanding amount.
The Supreme Court has ruled that no court can direct a bank or a financial institution to offer OTS to a borrower when the bank or FI is of the opinion that it would be able to recover the amount through auction of assets.
When you miss a few EMIs on your loan, the lender typically begins the recovery process after sending you multiple notices. In the case of secured loans such as home loans, two-wheeler loans, and car loans, the bank can take possession of the asset as per the SARFAESI (Securitization and Reconstruction of Financial Assets and Enforcement of Security Interests) Act.
However, the lender cannot start the repossession process without giving you sufficient notice. If you fail to pay the outstanding amount within this time, the lender can initiate the recovery process and take possession of the asset. In addition to the notice period, the lender must also follow other legal procedures and guidelines specified under the SARFAESI Act before initiating the repossession process.
In the case of an unsecured loan, the lender can take legal action against the defaulter by approaching the court to recover the outstanding amount. The court will then issue a notice to the defaulter, requiring them to appear in court and present their case. If the court finds that the defaulter has a genuine reason for not repaying the loan, it may provide them with protection and assistance.
However, if the court finds that the defaulter has no genuine reason for not repaying the loan or is engaging in fraudulent activities, it may rule in favour of the lender and allow them to recover the outstanding amount.
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