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Can bank freeze or put lien mark if I am paying small small amount


26-Feb-2026 (In Recovery Law)
Hi Experts , I am default on personal loan but from last two months I started paying half half emi amount to the bank but still the bank representative saying you need to pay full emi or else bank will freeze all you accounts. I already told them I need some time to arrange the pending amount but meanwhile I am.paying part payments, can someone advice me If bank can freeze my account
Answers (2)

Answer #1
976 votes
If you have taken an unsecured personal loan, the bank cannot arbitrarily freeze all your bank accounts without due legal process. However, if your loan agreement contains a right of set-off clause and you maintain account in the same bank, they may adjust available balance towards overdue EMI. They cannot freeze accounts held in other banks unless they obtain a court order or recovery certificate. Mere telephonic threat has no legal value. Continue part payments but formally write to the bank requesting restructuring or moratorium. Keep proof of payments. If harassment continues, you may complain to the Bank’s Grievance Cell and thereafter to RBI Ombudsman.
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Advocate Vinod Todiwan

Adv. Vinod Todiwan

LawRato Navi Mumbai | 5+ Answers
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Answer #2
504 votes
No they cannot freeze your bank account without court notice or an arbitration order in your favour for that as well they need to file an application with them and get an order before that you will receive notice if you reply to each and every notice and oppose the filing any case against you, you can get time and seek settlement in the meantime on all your loan they give atleast 30-40% loan settlement against the personal loan generally
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Advocate Moksh Jain

Adv. Moksh Jain

LawRatoMumbai | 100+ Answers
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