If you also take a personal loan to meet your needs, then this information is very important for you. Nowadays, taking personal loans has become very easy. Banks and financial companies easily approve the loan based on some basic documents and your credit score. But if for some reason you are not able to repay EMI on time, then you may have to face the recovery agent. Many times there are cases where customers have been treated unfairly by recovery agents. In such a situation, it is important for you to know what are the rules related to recovery and what are your rights.
Delay in personal loan and recovery agent roll
When you take a personal loan, a fixed interest rate applies to it. EMI of the loan has to be paid on time every month. But if you do not fill installments continuously, then the bank or financial company can start the recovery process against you. Under this, the recovery agents contact you and ask to pay the outstanding amount.
The Reserve Bank of India (RBI) has issued a clear guideline for the functioning of recovery agents. The purpose of these rules is to ensure that there is no wrong or derogatory behavior with the borrowers.
Can the recovery agents come to your house?
The question arises in the minds of many people whether the recovery agents can come directly to their house if they do not pay the loan. The answer is – Yes, the recovery agents can come to your house or workplace, but there are also rules for this.
According to RBI’s guidelines:
Recovery agents can visit any borrower’s house or office only when that time is suitable.
They can contact between 7 am and 7 pm.
Contacting at night time, or without permission without permission, is considered a violation of the rules.
The agent has to interact with the borrower in respectable and civilized language.
They have to inform the borrower in simple and clear language about all options and conditions of payment.
What can’t a recovery agent do?
According to RBI rules, some clear restrictions have also been fixed for the recovery agents:
Agents cannot threaten the borrower under any circumstances.
It is strictly prohibited for force recovery, intimidation, abusing or using physical violence.
Mental pressure, harassing family members or socially embarrassing is also a legal offense.
The privacy of the borrower cannot be violated.
Complaints can be made against the concerned agency and bank for creating any kind of illegal and unfair pressure.
What to do if recovery agents misbehave?
If you feel that a recovery agent is abusing you, then you can follow these steps:
Keep the record: Record the conversation or note the date, time and agent name.
Complain in the bank: First of all file a complaint in the grievance redressal system of that bank or financial institution.
Complain in RBI: If there is no solution from the bank, then you can also complain to RBI’s ‘Banking Lokpal’.
Regarding a report with the police: If the recovery agent has threatened or used force, then an FIR can be lodged with the police.
What to do in the event of not repaying the loan?
If you are really in financial constraints and are unable to repay the loan, contact the bank instead of panic and clarify your position. The bank can provide you with new options for repayment, relief in EMI or loan restructuring.
Making yourself invisible or avoiding calls can increase the problem. So talk honestly and try to find a solution.
conclusion
It is easy to take a personal loan, but it is equally important to pay it on time. If for some reason you are not able to fill installments, then you have options, and your rights are also safe. Recovery agents can come to your house but they cannot misbehave with you. You can seek legal help if you are inappropriate.
Remember, it is possible to solve any financial problem only with respect and correct information. There is security in the information itself!
