Every borrowing which is taken through the bank as a loan has an agreement where all the things related to EMIs, amount, relaxation, etc. are mentioned but there is one more section available where they have mentioned on payment defaults what they have to do. Since a personal loan is an expensive loan so missing out EMIs is understandable this is why the lenders have plans of relaxation for the borrower.
Lenders understand that the interest rate is high and every time timely payment is not possible until there are enough resources. In the market of finance HDFC Personal Loan is considered to be affordable because of their understanding for the people this is how they manage their customers but the tenure is tenure and you are not allowed to cross that time for the payment. If there is default there are many things that a lender can do it can be strict or negotiable.
Actions for defaults
1. Notice Issue
After your 2-3 EMI payment failure the lender will issue a legal notice which will be sent to your email, home, etc. to notify you that payment failures are in access, so either visit the lender’s office or pay the EMIs.
2. Negotiations opportunity
After serving the notice if the borrower still fails to pay the EMIs then he should visit the lender’s office and have a talk with him related to the problems and he may offer a discount for a temporary time. Remember those discounts will not be for all the EMIs but for some time only so you don't have a payment failure. For this purpose, HDFC Personal Loan is helping many people who believe this loan can have some defaults.
3. Post date Cheques submission
After failing the payment still, the bank will send the final notice regarding the payment of the due amount. The borrower will be asked to submit a cheque for the deduction of the due amount. And if the borrower doesn’t have enough amount in his bank account and his cheque bounces then he will be counted as complete default and he will get a reduction in credit score. And there can be a seizure of an asset as well.
4. Punishment
After all the above 3 options if the borrower fails still then the borrower will be counted in the criminal act and he will be registered under section 420 of the Indian penal code and he will have to serve punishment in jail.
Above mentioned details are just too aware of the audience so they get to know about how much the chances they will get. Without thinking about the consequences you can get the personal loan still and people fail during the personal loan is when they ask the amount without any calculation because if the amount is increasing then EMIs will increase too.
Comments