Unability to pay EMI's, bank selling property
I had taken a personal loan for which I didn't pay the EMI's for, as i had lost my job. The loan tenure finished in 2013 only. They have now initiated some legal action against me. They want to seal my property under the arbitration and conciliation act 1996. Is it possible?
Your default in making payment makes you liable for legal action for recovery by the financial institution. When you take loan, you have a contract with the bank/financial institution to repay it. If you do not make the payment to the bank then it will first issue you a legal notice and ask you to make the payment.
If you still fail to do so then the bank will start a recovery proceedings against you which does not take much time. Moreover the mortgaged property can be got auctioned to recover the arrears.
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