Everyone might have to avail of a loan in a financial emergency. In these situations, people usually take loans from banks or NBFCs. But, for some unfortunate reason, they can’t repay the borrowed amount. That’s when the bank or NBFC uses all the possible means to recover their loan amount. An individual could face a lot of harassment while returning borrowed money to a bank or NBFC. Under the new RBI guidelines on loan recovery, this is no longer the case because it will relieve the borrowers of almost all kinds of inconveniences.
People again and again borrow to meet their financial requirement and may not always be able to repay because of various reasons, and the institutions where they borrow from will have different channels to try and recover the loan amount.
One of the aforementioned forms consists of a Loan Recovery Agent. There have been occasions when their visits or attempts to contact an individual turn into rude behavior with the borrower at the receiving end. Such an example has led the Reserve Bank of India to issue some guidelines; it has made it legally impossible for any individual who is unable to repay a loan to be subject to illegal harassment by the bank or any other loan giving financial institution.
Regulatory prescribed by RBI for recovery:
All banks have separate qualification to collect their debts which are to be framed under the R.B.I. guidelines (RBI loan recovery rules). If a bank gives a loan to an individual and for one reason or the other fails to pay, the bank can appoint loan recovery agents as option for loan recovery by giving notice.
This option is to be availed of under the guidelines of RBI. The recovering agent and the lender can be penalized under the law for this; any type of wrong behavior of the recovering agent for loan recovery is also a crime according to the law.
To whom can one complain about the recovery agent
Not paying a loan is not a crime so you need to tolerate any kind of misbehavior from bank recovery agents (RBI rules for recovery agent).
In case you default on a loan, bank recovery agents possibly misbehave with you or harass you or may try to assault you. So in that case, file complaint against them (recovery agent ki complaint) both with the bank and police as it is against the law. Under the law, the fact that you are not repaying loan falls within civil dispute and not in criminal dispute.
What the recovery agents are to do.
If you fall into the loan-defaulter category and an officer or recovery agent comes knocking at your house before 7:00 am demanding the loan, then go file a complaint against them (as under rules for loan recovery agent), as it is limited to only 12 hours starting 7 a. m. until 7 p. m.
The bank will give space even if the customer is not paying the EMI.
Under loan, installment payment stands out as an imperative detail which an individual who has taken a loan must adhere to and take care of it because default, say for three consecutive months, is enough for the bank to issue a legal notice against the individual.
In this regard, the borrower is given a time period of two months as an opportunity to repay his loan. If the borrower does not avail himself of the opportunity to pay within the stipulated time then he can face the process of recovery of loan debt.