Use of Force by Banks to Recover Loans

According to my view the bank are generally give the loans to the people who all are having the good salary in the sense of as per bank limited salary and her property. So there is no need to force to recover loans. But some situation people are not pay the loans so they supposed to force to recover loans the conclusion is they have rights to force to recover loans.

Bravo guys!

Why should someone opt for what he knows he has no capacity to do? monies kept in banks belong to other institutions and people. If for some reason Mr. A who needs financial help asked a bank to so do and the bank granted his request, has the bank done something out of the way? Don't forget that banks do assess their individual customers and the collateral they provided by the banks credit department. It is important to note that banks do not immediately seize a defaulting customer's property without thorough follow ups and warning.

Some banks behave like local financiers to recover their loan amount from the borrower. They harass over the phone, they send their staff home and threaten to humiliate the borrower even after knowing that he or she has a genuine problem. Hence you read about suicides by people who are unable to deal with this kind of harassment. Does the reserve bank of India not have any laws to help the borrowers in times of crisis.

The bank on about customer give loan the return of the bank doing loan recovered.

And if the banks fail to check their customer's credibility thoroughly at the time of sanction of loan then its the bank's fault it should not harass the customer for its own fault. But people should know that banks not meant for charity rather they are a well established financial institutions and work for profit motive.

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.

As far as my views on force to be used to recover the loan from the borrower is not justified as at the time so payment of loan bank should follows the rules in vogue and fulfills the term and conditions of loan and it should also be ensured that the person who taking loans is capable to return the same within the stipulated period. At the last since the loan is the govt money property of the person who is unable to return the loan be auctioned and amount recovered be liquidated the loan.

I accept the fact that there is some amount of fault with the bank but people ? are they very correct in what they are doing ? If you know that you will not be able to pay the amount why do you have to get the loan. In cases where something backfires unexpectedly I can understand but there are people who deliberately get loans and avoid paying them back and the bank has to take some step as money is in stake. So the fault lies with both I'll say. The bank should act responsibly while giving loans and so should citizens applyinng for loans.

Giving loans is an essential part of banking and recovering the dues is also very important aspect, and for the matter of fact bank do check all the documents and assess the credit worthiness of the Customer, but if still people refuse to repay with an intention to default, using a recovery agent becomes necessary. As the money that bank gives as loan is public money.

The all discussion which given are good, but whatever discussed, it already implemented by mfi companies, they give divide the customer according to their income, according to their activity, and according to their paying capacity, so by this customer not get burden of the loan, customer fill easy to pay, this kind of amount are sufficient to invest in their activity and earn more money by invest loan in right way, it all monitor by mfi companies that's why mfi sector are so successful in India.

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.