Personal Loan: Anyone can suddenly need money. If you do not have an emergency fund and savings, then you have to take a loan. In such a situation, people take personal loans. Keep in mind that personal loans are the loans with the highest interest rate. Therefore, one should go for personal loans only when there is no other option left. Many times people take personal loans to fulfill their hobbies or to invest money in the stock market. Then they are unable to repay their bank loan. Today we will tell you what the bank can do if you are unable to repay the personal loan.
Legal action
When the customer does not repay the loan even after repeated warnings by the bank, the bank can take legal action. In this legal action, a civil suit can be filed against the customer. In such cases, the court can order the person who does not pay the loan to repay the loan. In many cases, the court can also order to seize and sell the property of such people for recovery of the loan.
Loan recovery agents
According to AU Small Finance Bank, when the lending bank is unable to recover the loan amount from a person, they can appoint debt collection agencies for recovery. The recovery agents of the debt collection agency can harass the person who does not repay the loan, which can cause a lot of stress and anxiety. In many cases, the situation worsens.
CIBIL score will be spoiled
When you are unable to repay the loan of a bank, your SABIL score will be badly affected. Due to this, you will face a lot of difficulty in getting a loan from any bank in the future. Even if a bank is ready to give a loan, you will get a deal with a very high interest rate.
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