Use of Force by Banks to Recover Loans

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.

Whenever bank provide loan to the borrower then bank get the assurance about that borrower that what the person do and what assets they have. Then a bank decide to give him a relevant money that he could return to the bank. If somehow the borrower fail to pay money then bank send there agent to know the problem. Then again the borrower will get some more time by bank to pay the money. If the same think is happening again and again then bank will take a strict action against the borrower.

Today banks are providing loan like it is an primary function of this. He has to understand this that this function is also an harmful function of it. Regarding to recovery of loans I use to say that if banks mortgagee property then why it don't go legal activity because if bank give service then it has right to go legal. For recovering its assets.

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All discussions in my opinion bank before going to give a loan ask a security for that person or ask a surety. Maybe He does not have any property but he knows some person to sign as a surety.

That is very easy to both bank and customer. Because bank rule is same as to everyone.

Bank give a loan from customers money so bank have a need to repay the customers money back and bank can't say the reason of loanly people late to give the customers money. For that bank have a permission to repay the loan by violent activities when at a critical condition.

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.

If customer could not pay the loan and now many years passed and would like to make settlement whatever the money has as per the his capacity. Is is possible?

Banks requiring to use force to recover loans is an indicator that its credit appraisal process is faulty. It is not continuously monitoring the lender if the funds are being used for the specified purpose. So, it is better to improve their credit appraisal process than to resort to violent activities to recover loan, which is also prohibited by law.

Even if one defaults they can always approach the court and go by the legal route.

I am not agree with that banks are offering loan like selling vegetables, because every banker has responsible to describe their bank status to their superiors. In which, they have maintain some amount of scale to providing loans to their customers. In this case not every customers are eligible to obtain the loan as per terms and conditions and their repaying capacity. It is very important to maintain their financial scale status.

The bank are very clean to offer the loan to the selective customers due to the below poverty line customers. They only offer loans based on their repaying range. They can study their customers well with their documents but document should be check well and problems are started from here only if it is clean documents the cheaters can control we can also legally use force to control the cheaters documents and their source for paying back to the bank.

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.

Hello friends.

Someone take the loan only if he need the money and he has not other resource to get money.

But we have to give back that money to the bank. That is the rule of this business.

And according to me the rule is rule and it is same for everyone. So, if some one can't give the money back, then bank can use the force to get the money back.

But also, sometimes there may be some valid reasons not to give money back. For example, a farmer had taken a loan and now, he is not able to pay back because of the loss.

In this case, the bank should not use the force.

But if someone wants to cheat the bank and intentionally don't want to pay back, that the bank need to use the force.

So in my point of view, if someone is not paying the loan back, then first, the bank should find out why the person is not paying back, after that it should be decided whether to use the force to get the money back or should extend the time.