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Can bank sell the property which is not mortgaged to recover the loan
20-Mar-2023 (In Banking / Finance Law)
My partnership firm has taken credit cash/c.c loan of 1 crore from bank for this I have mortgage property worth 1.25 cr. But unfortunately our business goes in loss and I am not able to repay the loan now bank will sell out my mortgage property but the value of the property goes down to 60 lac. Now I just want to ask that whether bank can take and sell my other property which is not mortgaged to recover the loan.
Banks have to follow the process and give you time to repay dues before repossessing your assets to realise the arrears.
Typically, banks initiate such proceedings under the SARFAESI Act. If the borrower’s account is classified as a non-performing asset (NPA), where repayment is overdue for 90 days, the lender has to first issue a 60 Days’ notice to the defaulter.
There are cases where the bank has sold the property of the defaulter which is not mortgaged by filing case under SARFAESI Act and involve your personal property to an initial loan taken by you.
Typically, banks initiate such proceedings under the SARFAESI Act. If the borrower’s account is classified as a non-performing asset (NPA), where repayment is overdue for 90 days, the lender has to first issue a 60 Days’ notice to the defaulter.
There are cases where the bank has sold the property of the defaulter which is not mortgaged by filing case under SARFAESI Act and involve your personal property to an initial loan taken by you.
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Adv. Ankit Juneja
Delhi | 25+ Answers
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It totally depend on clause mentioned in agreement signed by you and bank in relation to Loan . If it is mentioned in agreement that if your property value not able to fulfil value of loan or if loan unpaid then any property link to that loan or any other property registered in your name will sell out.
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Adv. Rajat Goel
Delhi | 25+ Answers
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