In today’s time, taking personal loan has become a common practice. People often resort to personal loans for marriage, studies, treatment or any other necessary expenses. Its biggest feature is that it does not require much documentation to get it. Banks or financial institutions approve loans based on your credit score and some basic documents.
But if for some reason you are not able to repay your EMI on time, then the difficulties can increase. Banks or landing institutions may send recovery agents to recover the arrears. Recently, many reports have revealed that recovery agents misbehave with customers. Therefore, it is important to know what are your rights in the event of non -payment of loan and which rules are obliged to follow the recovery agents.
What can a recovery agent do?
If you are unable to repay the loan on time, yes, the recovery agent can come to your home or workplace. But rules have also been set for this. The Reserve Bank of India (RBI) has released strict guidelines for recovery agents.
According to RBI rules:
Recovery agents cannot go to the customer’s house or office.
Usually contact can be made between 8 am and 7 pm.
The agent will have to interact with the customer in a civilized and respectful manner.
The agent will have to give information about all the repayment options to the customer in simple and clear language.
Its purpose is to ensure that the customer does not face unnecessary mental stress or fear.
What can’t a recovery agent do?
Just as the RBI has fixed some rights of recovery agents, similarly their conduct has also been imposed strict restrictions.
Recovery agents cannot do this work:
Can not harass any customer physically or mentally.
It is strictly prohibited to enter the house by force, forcibly recovering or threatening.
The customer cannot be threatened with death.
Offensive language or abusive cannot be used against customer or his family members.
It is forbidden to violate the privacy of the customer. This means that the agent cannot spread the information of the customer’s default in front of a third person.
If an agent violates these rules, the customer can file a complaint against him.
What to do if the recovery agent disturbs?
If you feel that a recovery agent is misbehaving with you or threatening you, you can take the following steps:
First of all, file a complaint with the concerned bank or financial institution.
If the bank does not take action on your complaint, you can go to Banking Ombudsman.
A complaint can also be lodged with the police if an agent threatens or misbehaves.
Apart from this, RBI also makes customers aware from time to time that if the behavior of a recovery agent is objectionable, do not ignore it and take appropriate action.
What are the options for not repaying the loan?
If you are really unable to repay the loan, there is no need to panic. You can ask for some options by contacting the bank:
Re-Structuring of Loan: Banks can increase your loan duration, which can reduce your EMI.
Settlement of Account: In some cases, banks can settle the whole matter in some low amount with you.
EMI Moratorium: In an emergency, EMI payment can be relieved for a few months, although this may increase interest.
In all these cases, it is most important to communicate with the bank on time.
conclusion
The easier it is to take a loan, the more it is important to pay it on time. If for some reason you are not able to repay the loan, then do not panic. You have your rights and the recovery agents can also take action under the prescribed rules. If they violate these rules then you have every right to complain.
Remember, financial difficulties can come at any time, but you can deal with them by taking the right information and correct steps. Always communicate with the bank on time and do not hesitate to seek legal help if needed.
