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Loan is in NPA how can i stop bank from taking physical possession
4 months ago
After covid my EMI's were bounced but have been paying 50% or 1 EMI every month but till date my loan is 12 EMI due. Bank has issues 13/2 & 13/4 notice 6 months ago, now they have given verbally 15 days to pay the 10 EMI due or they will take physical possession.
I have been paying some part of EMI every month, never left even a single month without paying anything. But the backlog has gone up to 10 EMI due.
How can i negotiate with bank? They are not listening at all. What shall be my approach to stop physical possession? I am ready to pay 1.5 EMI every month & some extra EMI after 6 months by this was in 1 year i can cover up the dues. But due to march ending pressure Bank are not giving me time at all.
What shall i do?
A.Dear Client,
When loan repayments cease or bounce for three consecutive installments, the bank takes steps to recover the loan, marking it as a bad loan or Non-Performing Asset (NPA). While you can request additional time to settle dues, you remain liable for repayment. If the bank files a suit for loan recovery in a Civil Court, the court may order collateral attachment for both the borrower and guarantor. Negotiating a debt settlement is an option, either independently or through third parties like debt relief companies, which negotiate on your behalf. Be cautious of potential scams and verify the legitimacy of such companies. A debt settlement involves repaying a portion of the loan, with the lender forgiving the balance. Initiating negotiations by offering to pay a percentage of the outstanding balance is common. However, it's crucial to consider the impact on your credit score and potential tax consequences. Consulting with a certified credit counselor can provide valuable insights into your options and help you make informed decisions about your financial situation.
Thankyou
When loan repayments cease or bounce for three consecutive installments, the bank takes steps to recover the loan, marking it as a bad loan or Non-Performing Asset (NPA). While you can request additional time to settle dues, you remain liable for repayment. If the bank files a suit for loan recovery in a Civil Court, the court may order collateral attachment for both the borrower and guarantor. Negotiating a debt settlement is an option, either independently or through third parties like debt relief companies, which negotiate on your behalf. Be cautious of potential scams and verify the legitimacy of such companies. A debt settlement involves repaying a portion of the loan, with the lender forgiving the balance. Initiating negotiations by offering to pay a percentage of the outstanding balance is common. However, it's crucial to consider the impact on your credit score and potential tax consequences. Consulting with a certified credit counselor can provide valuable insights into your options and help you make informed decisions about your financial situation.
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A.Dear Client,
Once the repayment of the loan stops or bounces for consecutive 3 installments, The Bank initiates a routine course of action for recovery of the loan from the borrower marking the loan as a bad loan/NPA. 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 can try to negotiate a debt settlement on your own if your pocket permits, but sometimes it's typically done through third parties like debt relief companies, which you may hire to negotiate the settlement matter with the lender on your behalf. With this method, you will make payments to the debt settlement company rather than your creditors/lenders, along with any fees. Debt settlement is an agreement between a lender and a borrower in which the borrower repays a portion of a loan balance and the lender forgives the balance. You may consider starting the negotiation by offering to pay 25% or 30% of your outstanding balance in return for forgiveness on the rest. But, it may be noted that while there are legitimate debt relief/settlement companies, there are also many scam operations. So, if you're considering one, the Consumer Financial Protection Bureau(CFPB) suggests for contacting your state attorney general's(AG) office and local consumer protection agency to ask if they have any consumer complaints on file about that company. Some states require that debt settlement companies be licensed, which may provide some added protection. Although a debt settlement can offload some of your financial burden, there are also a few potential risks and downsides to consider. First, a debt settlement will affect your credit score. That will make it more difficult for you to get credit or good interest rates in the future. Another potential drawback is that when you settle debt, you could face tax consequences. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path forward.
Once the repayment of the loan stops or bounces for consecutive 3 installments, The Bank initiates a routine course of action for recovery of the loan from the borrower marking the loan as a bad loan/NPA. 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 can try to negotiate a debt settlement on your own if your pocket permits, but sometimes it's typically done through third parties like debt relief companies, which you may hire to negotiate the settlement matter with the lender on your behalf. With this method, you will make payments to the debt settlement company rather than your creditors/lenders, along with any fees. Debt settlement is an agreement between a lender and a borrower in which the borrower repays a portion of a loan balance and the lender forgives the balance. You may consider starting the negotiation by offering to pay 25% or 30% of your outstanding balance in return for forgiveness on the rest. But, it may be noted that while there are legitimate debt relief/settlement companies, there are also many scam operations. So, if you're considering one, the Consumer Financial Protection Bureau(CFPB) suggests for contacting your state attorney general's(AG) office and local consumer protection agency to ask if they have any consumer complaints on file about that company. Some states require that debt settlement companies be licensed, which may provide some added protection. Although a debt settlement can offload some of your financial burden, there are also a few potential risks and downsides to consider. First, a debt settlement will affect your credit score. That will make it more difficult for you to get credit or good interest rates in the future. Another potential drawback is that when you settle debt, you could face tax consequences. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path forward.
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