Bank Rules: There must be a moment in everyone’s life when he thinks of taking a loan. There are many types of loans. Like what is taken for building a house, it is also taken for home loan and similar car etc. Such loans fall under the category of secured loans.
Now in these loans, the bank mortgages a property with itself as a guarantee. If seen, if the loan is taken, then its installment will have to be paid. However, many times people are not able to return the money. In such a situation, they have to face a lot of problems.
Obviously, when the loan is taken, it will have to be repaid one day. Then the bank starts the action to withdraw its money by doing various types of work.
Reminders are sent first
Let us tell you that if two EMIs of the loan are not given, then the bank sends you a reminder. In the case of a similar home loan, if you miss three installments, a legal notice is sent. Even after that, if you do not pay the money, then you are declared a defaulter by the bank.
If you do not repay the loan on time, then it spoils your record. It has a bad effect on the credit score. This again makes it difficult for you to get a loan the next time around.
Auction comes to an end
If you do not pay three installments and then do not take the warning seriously, then you will come under NPA. For example, if your property is also mortgaged in the secured loan, then in case of non-payment of the loan, the bank can sell that property and repay the loan. The bank can take possession of your mortgaged property. Then it will be the right of the bank.
Auction was the last option
The bank sends reminders and notices. Even after this, if the borrower does not pay the loan, then the bank takes possession of the property of the person concerned and after that the auction process starts.
