Rights of a Borrower
Unable to repay your loan? Don’t worry, you still have the right to live a peaceful life. The Banking Codes and Standard Board of India is a system, that decides the degree of conduct for banks, which also state guidelines for recovery of Loan.
Few clauses are as follows:
Sufficient notice: The bank should inform the borrowers regarding his/her dues and should give notice at least before seven days from recovery against the borrower.
Time of calling: A bank has no right to call you at any part of the day. The time of contact as documented is only between 7 a.m. and 7 p.m. also how many calls in a day the bank can do and the content of the conversation is also documented. If you ask the bank person not to call at this time, they have to honor your request.
Civil behavior: Physical violence and abusive language is a crime. The bank must respect the privacy of customers and should not reveal any personal details in front of someone else.
Place of contact: The place of contact of the customer and the bank is chosen by the customer. If he/she doesn’t mention any place then, the bank can come to the residence or workplace of the customer.
Repossession of property: According to guidelines set by the Indian Bank Association, the bank has no right to repossess the property of customers without giving the warnings. The repossession is the last measure, and before that, a notice is sent.
It is the responsibility of the bank to take care of the assets after taking custody.
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