Use of Force by Banks to Recover Loans

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.

Bank has right to recover money in better manner. If they using forcible techniques it will deteriorate image of bank and people will loss confident on bank.

Hi in my view banks have every right to recover the loan by selling the mortgaged property and other assets of the wilful defaulter as banks money is of public money and if loans will go to be bad in higher scales banks will default in payment to its depositor and ultimately whole financial system will collapse.

Thanks.

Yes, bank can totally use force to recover loans as non-payment of timely interest leads to criminal offence. But only when they have provided money after going through repayment capacity of the borrower. A legal documentation and other paper work is done to sanction the loan. If a person has not met all these conditions then bank does not provide loan. And even if it has provided without going through the financial conditions then here bank has no right to claim their money forcefully because here bank is also at fault.

According to me banks really should not use forcible things to recover the loan. Banks should assess the condition of the borrower, why he was failed to pay the loan. On this basis banks should decide what to do to take back amount, whether he should be given second chance or some relaxation in terms, and if loan was not being paid intentionally then bank can use whatever it thinks like seize the property, etc.

Most of the population don't consider terms and condition regarding loans that's why they have to face problem while repaying the loan.

And agents sell the loan with making fool the bunches of people knowing the facts that if they will not repay the loan there are lots of way can be used to recover the loan.

Hello friends.

According to my point of view bank has the right to take their money back. Just think that if you give money someone for some period and when the time goes you also want your money back so why not bank ? bank also has some rules and regulation they have to work according to their rules so yes bank can force to recover their loan.

Hello friends,

In my point of view, Banks cannot recover the loans by force. Its because Bank does have many conditions and practices. They also simply cannot sale any property if the recovery is not made. By applying those conditions and practices bank can recover the loans by giving demand notices to the borrower.

What ever the loan is Bank's definitely take security, They do have the right to sell the mortgaged, hypothecated and pledged securities under the SARFAESI Act 2002. Of course if they do not have any security then it's completely on the bank to bear the monies if the borrower becomes Bankrupt.

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.

As I see everyone perspective towards the whether, harsh steps should be taken by bank to recover loans or not but for me the bank should definitely use the power to recover loans. And I am totally agree with my friend who gives a good example of vijay mallya who ran out of country after taking such a huge loan and I am like to ask those who was against this step of bank is it possible if bank just kept silent and wait for the person to return their loans. As India is democratic country each and everyone get a right to take the loan but with that they also signed a bond of returning it and that time is given according to the loan taken by that person. If the person failed in his duties he is surely treated as a criminal because its govt money, people's money, taxes given by the normal people this is that money and if bank use force to recover loans than it is not wrong.

Hello everyone I am Harsh.

In my view I support the banks to take loan recover by force fully but after giving full time to customer to return money. Because after taking loan many peoples are not able or they don't want to return money. So if bank not force then most of loan taker does not return money.

Thank you.