I have defaulted in my personal loan. What are my legal options

986 votes

Hi,

In your case, you need to enquire about the next date of court of hearing. And kindly appear before court on the date and tell the magistrate/judge about the problem/cause of not giving the EMIs on time.
Also need to know the nature of your case for more guidance.
Consequences are
1.You have to compell by the court for the repayment by
a. Attachment of your property which is on your name.
b.resettlement of EMIs by way of mediation etc..

Advocate Deepak Gandhi LawRato

855 votes

The Bank has the right to move an appropriate application before the Ld. Debt Recovery Tribunal (DRT) for recovering the outstanding amount from you. Further, if you are not able to clear your outstanding amounts, in that case your CIBIL score will get affected. Firstly, contact the branch manager and try coming to a settlement on a mutual basis without letting the bank initiate legal proceedings against you before the Ld. DRT. Once the bank initiates legal proceedings against you before the Tribunal, the bank will have the right to recover the said amount by selling your assets.

Secondly, since you have received notice on behalf of the bank through advocate, it is necessary for you to give your objections to the same (take legal advice). This will help you in case the bank initiates any legal proceedings against you.

Advocate Akshay Abrol LawRato

765 votes

You may reach the Bank's claim recovery agency to whom your case would have been forwarded by now and ask them for a settlement plan.
They would be able to support you and would provide a one-time or monthly payment plan for a fixed tenure.
In case you fail to settle, the bank would continue to call you for payment.
Since you already mentioned the court, I presume the case has already been filed.
In such case, if you continue to not appear, the court may pass an ex-parte order against you for the entire amount claimed.
It is better that you appear and show your bonafide. The Court would refer the matter for mediation and you may be able to get another chance of negotiating a settlement.
However, please note that the only way to clear this would be to pay complete amount or settle it, else the court would ultimately order for recovery of the entire amount (with interest) which can be recovered from you.

Advocate Atit Jain LawRato

787 votes

dear client as per your query the said loan amount that you had taken from the bank is about 4.5 lakh outtanding. the bank will recover it from you through suit for recovery and you had to settle the said loan amount

Advocate Sanjeev LawRato