Personal loan EMI bounced
8 months ago
I have not paid my personal loan last 3 emi due to loss in business and now I start new job but i my income is very less. Now bank send me legal notice so what will be legal proceedings.will they send me to jail???
A.Dear Client,
When you default on a personal loan, the lender, in this case, the bank, has the right to take legal action to recover the outstanding dues. The legal proceedings initiated by the bank may involve sending you a legal notice, filing a civil suit, or taking other actions as per the provisions of the loan agreement and applicable laws.
Regarding the possibility of being sent to jail, in the context of a personal loan default, generally, non-payment of a loan does not result in immediate imprisonment. Debtors' prisons have been abolished in India, and non-payment of a loan is considered a civil offense rather than a criminal offense.
However, it's important to note that if the bank successfully obtains a judgment against you through a court, they may initiate steps to recover the outstanding dues. Some possible methods for recovery include attaching your assets, garnishing your wages, or freezing your bank accounts. These actions can vary depending on the specifics of the case and the applicable laws in your jurisdiction.
To deal with the situation, it is recommended to engage in open communication with the bank to try and negotiate a repayment plan or settle the outstanding dues. If required, you can also seek legal assistance to understand your rights and defenses available in the specific circumstances of your case.
Thank you
When you default on a personal loan, the lender, in this case, the bank, has the right to take legal action to recover the outstanding dues. The legal proceedings initiated by the bank may involve sending you a legal notice, filing a civil suit, or taking other actions as per the provisions of the loan agreement and applicable laws.
Regarding the possibility of being sent to jail, in the context of a personal loan default, generally, non-payment of a loan does not result in immediate imprisonment. Debtors' prisons have been abolished in India, and non-payment of a loan is considered a civil offense rather than a criminal offense.
However, it's important to note that if the bank successfully obtains a judgment against you through a court, they may initiate steps to recover the outstanding dues. Some possible methods for recovery include attaching your assets, garnishing your wages, or freezing your bank accounts. These actions can vary depending on the specifics of the case and the applicable laws in your jurisdiction.
To deal with the situation, it is recommended to engage in open communication with the bank to try and negotiate a repayment plan or settle the outstanding dues. If required, you can also seek legal assistance to understand your rights and defenses available in the specific circumstances of your case.
Thank you
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A.Dear Client,
Once the EMI against a loan is not repaid for consecutive 3 times by the borrower for any reason whatsoever, it is treated as NPA. Accordingly, the Bank sends notice to the Borrower asking him/her for repayment of the entire dues lying against your loan offering suitable terms. In the absence of any response from the Borrower, they started the routine process of action prescribed under relevant laws for recovery of debt lying outstanding against the Borrower and the Guarantor. You can make a prayer to the Bank for some more time to settle the dues but cannot escape yourself from your liability of repayment of your loan for any reason whatsoever. If a suit for recovery of an outstanding loan from the borrower is filed by the Bank before a Civil Court, after hearing both parties Court may pass an order for attachment of collateral security for both the borrower and guarantor for recovery of the loan. you may make a prayer before the Court for granting some more time explaining your present financial constraints which may or may not be allowed on the objection from other party Bank. So, try to negotiate the matter with the Bank out of court on suitable terms considering its impact on your CIBIL Record and other legal consequences. Reach out to an Advocate for guidance and steps.
Once the EMI against a loan is not repaid for consecutive 3 times by the borrower for any reason whatsoever, it is treated as NPA. Accordingly, the Bank sends notice to the Borrower asking him/her for repayment of the entire dues lying against your loan offering suitable terms. In the absence of any response from the Borrower, they started the routine process of action prescribed under relevant laws for recovery of debt lying outstanding against the Borrower and the Guarantor. You can make a prayer to the Bank for some more time to settle the dues but cannot escape yourself from your liability of repayment of your loan for any reason whatsoever. If a suit for recovery of an outstanding loan from the borrower is filed by the Bank before a Civil Court, after hearing both parties Court may pass an order for attachment of collateral security for both the borrower and guarantor for recovery of the loan. you may make a prayer before the Court for granting some more time explaining your present financial constraints which may or may not be allowed on the objection from other party Bank. So, try to negotiate the matter with the Bank out of court on suitable terms considering its impact on your CIBIL Record and other legal consequences. Reach out to an Advocate for guidance and steps.
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