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What can be done if I am unable to pay back the loan taken from bank


24-Apr-2023 (In Banking / Finance Law)
Money was given to purchase imported goods...but the party after receiving the amount cheated and didn't return the money... We are facing the legal actions by Bank... Can we make our prayer to court that the money be recovered from the firm that had cheated us.
Answers (2)

Answer #1
752 votes
A default does not strip you of your rights or make you a criminal. Banks have to follow process and give you time to repay dues before repossessing your assets to realise the arrears.

Typically, banks initiate such proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests (Sarfaesi) Act. If the borrower’s account is classified as a non-performing asset (NPA), where repayment is overdue by 90 days, the lender has to first issue a 6 ..
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Answer #2
665 votes
You have to file a separate suit against the exporter at the proper court in their country. The exporter cheating you has no bearing here in the bank's legal action against you. Better to request the bank to consider an out of court settlement.
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