Personal Loan EMI Bounce: What action will the bank take if you do not repay your personal loan? Loan takers should know the rules..

Personal Loan EMI Bounce: In case of sudden need for money and no emergency fund or savings, a personal loan can be the last option. This is the loan with the highest interest rate, so it should be taken only when there is no other way. Many people take personal loans to fulfill their hobbies or to invest in the share market, but it becomes difficult to repay them. Today, we will tell you what the bank can do if you are unable to repay the personal loan.

Legal action-

When a customer does not repay the loan despite repeated warnings from the bank, the bank can take legal action. This includes filing a civil suit against the customer. In such cases, the court can order repayment of the outstanding loan. In many situations, the court can also order the seizure and sale of the property for loan recovery. In some cases, there can also be a jail sentence.

Loan Recovery Agent-

According to AU Small Finance Bank, if a person is unable to repay the loan, the bank can appoint debt collection agencies for recovery. The recovery agents of these agencies can harass the defaulters, which can increase stress and anxiety, and sometimes the situation becomes very serious.

CIBIL score will get spoiled.
When you are unable to repay the bank loan, your CIBIL score gets badly spoiled. This means that in the future, you will find it very difficult to get a new loan from any bank. Even if a bank is ready to give a loan, you may have to pay a very high interest rate. Therefore, repaying the loan on time is very important for your financial future.

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