A personal loan is widespread and has a lot of popularity. There has been a steep rise in the application and you can get a loan easily. It is very easy to borrow and meets all your needs instantly. If you are looking ahead for a online personal loan, you need to pay the loan amount on time. If you default, and you are not able to pay the loan, then it will be a problematic situation for you. It will be difficult for the bank and as well as you to get the loan recovery done. However, as per the rules set by the Reserve Bank of India, a bank cannot hire any strong muscleman or bouncer to recover the loan.
A bank has to use various ways to recover a loan, but they cannot go for a powerful recovery where they need to involve any kind of bouncers. It is liable for any bank to try out all kinds of verification and legal ways, but without any employment of muscle power. The banks will have to use legal and police verification ways to handle recovery and not use any kind of bouncers. It is an alarm for banks as well as defaulter, as there will be other measures to recover the loan amount.
Why bouncers cannot be employed?
Harassment: It is a form of harassment for the borrower to get any kind of threatening by any bouncer or muscle power. If there are people that are old or senior citizens and are not able to pay off the debt, it is not justified to treat them with such power. They should not be subject to such humiliation and any kind of bouncers should not be employed to put any kind of harassment for them. There should be other ways by which the banks are able to recover the loan and you can go with it. Go for ways that include legal proceedings, police verification, and any kind of legal action. No bank is allowed to employ any such threatening and harmful activities that may cause harm to the citizens.
Genuine reason for default: There may be a situation where the borrower may face a certain crisis and is genuinely not responsible for being a default. In such a case, you cannot make your borrower go through such a harsh situation where they feel that their life is threatened. You need to handle such a situation in a better way if you get to know that you are having such a genuine problem and you need to bring out new ways to handle such a situation. There should be proper communication between the borrower and the loan provider so that the banks know the reason and offer them some extra benefits and grace period. It will help them maintain good terms and even the borrower will return the loan as needed.
How can borrowers ignore such a situation?
- Communication with the bank: The borrowers need to communicate with the bank and make sure they are letting the bank know the reason for default. If you are letting your bank know the reason why you are not being able to pay, you can go ahead and ask for help from your bank. It will help you ask for a grace period and your bank will think twice to take any step to be harsh to you. If you are in crisis, you need to speak to your loan provider so that he has the knowledge and he can help you.
- Give your loan a priority: If you keep your loan as a priority, you can meet all your wishes in the best way. It will help you go around and get all your needs fulfilled. When it comes to repayment you need to handle it seriously. Paying the debt will not be an option and you need to pay it after anything else. There are various ways by which you can handle your loan with priority and meet all your needs. This will help you manage your loam right and there will be no issue.
- Make your payment on time: If you are considering a good credit record, you need to pay your bills on time. Automate your payment so that you are right on track and don’t miss any payment without your fault. This will help you maintain a good track record and you won’t miss any bills. It will help you be in the good books of the loan provider and you can easily get away with your loan benefits.
If you are looking out for good personal loan interest rates you will have to work on your credit score. A good score will help you meet up your needs without any room for default.