Use of Force by Banks to Recover Loans

Using force for recovering loans is too barberic and illegal. Banks can always move the courts for loan recovery against any defaults. Our legal system allows that. Sending goons or the so called sharks should be considered a crime and punished.

Hi,

I am Akash. I think that the use of force by banks to recover loans should be according to the economical status of the victims. The use of force by banks in a developing country like India cannot be accepted because there are more than 10000 poor families living here. The government can change this by setting a limit. The families which have an annual income more than the limit should pay the loan at the right time else force can be used to recover the loan. For the poor once the loan can be taken from their income after their essential incomes. If the bank thinks this will damage their economical system, they should check the background of the family before giving loan.

Hi Guys,

There is a proper process of selling all the loans in the market like repayment capacity and proper follow-ups etc. And if we do this and keep our focus on all the facts so different-2 kinds of forces never take place at the front side and we would never get nervous in our lives. Givers and receivers both have to perform at the same place to complete the whole process so we must do all the activities very gently.

Thanks.

The way of recovery loan is not good whereas sending goons for that. Whether India is concerned it is a country of poor people where majority of the people are poor and unemployed also so they depend upon any kind economic help for their daily life. If bank provide them loan then somewhere bank has to be polite with them because they know their responsibility towards country than rich people but the problem is starvation that's why they are unable to pay loan on time. So it is duty of bank to think about them.

Banks are giving loans very but not taking surety from rich people they using that and not paying it back but it comes to normal people they are taking surety this is not the correct way to banks.

Banks should not use force to recover the loans. Govt of India and rbi both trying hard for financial inclusion in rural India. In this scenario, if coercive repayment methods are applied people not only will stay away from organised banking sector but they will fall prey of money lenders. But then also there are big corporate giants and individuals who default willfully. And banks have no strict method to mitigate this pain. In that case name and shame is a good try but many a time such as Vijay Malaya case. He is not afraid of shame Moreover, he blatantly lives his life in a far away country and banks are tied hand. Most of the times big defaulters go unchecked and small borrowers bear the brunt of the banks. So in a sensitive country like India banks in tandem with govt should identify the defaulters judiciously and make no wrong decision to punish helpless poor borrowers. Using force is not the end of the solution but checking on accounts keep vigilant of the repayment capacities and taking care of routine follow ups is the best way to avoid defaults in future.

Day by day bank's Non-Performing Assets (NPA) are growing drastically. NPAs are the assets which cease income to the banks for a period of more than 90 days. This is mainly due to the ineffectiveness of management. Because, even though some people have the capacity to repay the loan amount they are not doing that, which we call it as willful default in these days.

Before banks giving loans to the customers, they have to check the creditworthiness of the borrower and his history of borrowing and history of repayment of his loan amount and even if the credit history of the borrower is good they have to take the possession or property of the borrower, which gives the same value of loan amount as a security and if borrower unable to pay the loan amount bank should take the rights over the property to recover their loan amount but some people are really unable to pay their loan amount, particularly farmers. They take loans for their crops, but these mainly dependent on monsoons and due to the insufficient rainfall their crops are failing. Due to this reason, they are unable to pay their loan amount causing to make suicides. For this reason, Government came forward to waive their loan amounts.

Banks should also recover their loans as early as possible before it goes to non-performing asset stage. So before it's going to NPA stage of more than 90 days, it has to categorise the persons who have to give the loan amount i.e. who are not paying either principal or interest there on both as stages such 30 days, 60 days and 90 days. If a person not giving amount up to 60 days then banks have to use force from 61st day to recover their loans. It would be simple and easy way.

Hello guys.

Banks are the mediator between the people who are depositing money in order to gain interest and the people who take loans from the bank. If the banks loose their methods of recovering money from the debtors, then the whole process will be destructed as they will be causing high losses to themselves as well as the government.

The people who are taking a loan from the bank their's financial conditions should be first checked. We are living in a such a country where everyone is not eligible to take loans. So if banks are somewhere lagging in the process of confirming their threshold financial status for providing loan then banks should not have the right to use forces on them. But if required steps are taken then they should go with the legal process to recover the loan from the debtors.

One another thing that I would also like to add that banks should also work on the loopholes that they have in the process of recovering loan where rich and strong people like Vijay Mallya get benefitted and common people get unaware of that.

Our country is very much facing unemployment problems and a large section of educated unemployed youths are to set themselves with the help of bank's loans which could never be advanced except the collateral security either mortgage of property of his dwelling house in the name of aged parents only to his son for employed. But if the loans are default after couple of years for market crises and other various reason and the defaulter loaner always try establish himself for setting up but yet the unit is forced to close and bank tries to recover the money by sale procedure of the only dwelling house without offering any settlement procedure or if the bank agrees always breaks commitment and always harass the party without any offer and try to disclose open place of this security. This type of cases are occurring whereas the big amount dues in the big and rich persons with wilful defaulter are getting golden opportunity with halfe portion of dues amount. This is the scenario we are observing today. How can we judge it for better world in all concerns where most of the common people always threatening at present with various discrimination.

Hi Friends.

The changes that happen in today's market is unheard before a good business can become a nightmare in no time. No one worth his slat wants a negative CIBIL record in today's world. It is a pen secret that bank lends loan based on previous experience and market standings too. When something goes wrong it is not only the person who took it but also his entire family and staff too suffer. If the banks support in such a scenario, the defaulter can focus in getting back to track. Many times, goons & abusive elements who don't understand anything but their own welfare (By getting a cut out of the recovered money) harass forcing people to suffer in silence. Yes losing a property to the bank is fine, but losing one dignity can not be compensated. The question is "does the bank employee similar tactics to big business, say Vijaya Mallayya? or in that case a strong political - business entity. The answer is "NO". Big defaulters are respected where else small, society fearing individuals are threatened, abused & often insulted. Yes, banks money must be recovered under the law of the land and using strong-arm tactics should be stopped at any cost.