Buying a house is the most expansive decision you’ll ever make in your life and always you need some external funding to help you avail that home. So that’s why people depend upon home loans for this help. But what happens when you get a home loan and after some time you realize that you’re unable to pay the home loan. There might be any reason for this. It maybe you lost your job, or all your savings were depleted due to some unforeseen medical emergency that you or any of your family member suffered through. The question is will the bank seize your home after you fail to pay 2-3 EMI? The answer is no, not immediately but if you continue to be the defaulter for like 3-12 months, the bank will seize you home. This would be the last thing even your lender wanna do. Even though banks have the direct power to abduct the collateral when the loanee is unavailable to repay the loan without court orders, it is still the last thing they wanna do. Banks usually avoid the trouble of disturbing the loanee when one EMI is not paid but immediately before the next EMI payment, the bank will send you an E-Mail regarding your dues and will request to repay the amount. After three default non-payments bank will ask you to repay the dues.
Now following are the rights that are advised by the banking experts and shall be taken to take yourself out of this mess as soon as possible :
Right to Ample Notice: If you fail to repay your loan, it doesn’t strip you off from your rights or make you a criminal. Nor the bank can sell your property directly The right of ample notice states that if you are unable to repay the loan, the bank shall sell your car, but before that, the bank shall give you a 30-day notice.
Right to be Heard: The person has the right to negotiate before all this procedure, during this procedure, and even after this procedure. So you can negotiate your way out of the mess. For example, the ICICI Home Loan website has mentioned that all the disputes will be resolved under the state jurisdiction
Right to Humane Treatment: Again being a defaulter of the car loan doesn’t make you a criminal. You’re still a human and a customer of the bank. Bank or law cannot treat you like some criminal and humiliate you. So know your rights and act right according to it
Conclusion: so, here are some points, that can help you in case your not able to pay back your loan. A bank or any organization can not directly send you to jail. It has to follow some procedures. It doesn’t give the right to the bank to expel you from your property. If you fail to pass those procedures, then strict action will be taken against you. In some cases, the bank can also lower your home loan rate of interest
Comments