Use of Force by Banks to Recover Loans

Hello friends.

I completely disagree the statement. Banks are giving loans to people after verifying the certificates related to their income, property and for what purpose they are taking the loan, if the bank was satisfied with those documents then only the bank ll give the loan. So if the person who took the loan unable to return the money to the bank, the bank had right to sell the property of the person and fill their loan money, but they are not having the right to force the person to return the loan. Force on the person to pay the loan is violation of bank rules. So use of force by bankers is wrong statement.

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.

Hi all it seems that all here do not understand that in a Democracy, the money of the State/ Country is that of the Nation. A lot of people have mentioned in their response that the Banks give money or loans against the deposits they have. I am sorry but the RIB gives them the money and some banks have investors who are Black money Income group people who fund banks and Financial Institutes to give loans.

And why should banks need collateral security. If someone was poor or weak financially then why does the State not help him. Banks are just a medium for the financial distribution and accumulation/ deposits. Now big corporate are given Huge concessions in Tax Payments which are not known to the common public and these tax reliefs to Corporate are at times nearly the Budget of this Motherland so if there are people here who are discussing of what and how the banks should function are wasting their time.

And yes prior to Independence which people were rich, and after Independence the property of these people should have been the Property of India why is it yet with them. And why is there no economic freedom like that in some progressed Countries of this world. So stop this nonsense and try to raise your voice for Economic and Financial freedom and equality, where the Government has to strife either to give proper jobs to all or then they have to support people financially to get self employed and become entrepreneurs.

If these politicians who form the Government Cannot provide the masses with Food, Shelter and Clothing and an income source either a good job or a Financial support for business they should not govern and should resign.

Financing is dharma of Banks. All banks, generally, do carry out proper pre-sanction appraisal in all cases. In retail loans, I admit that existing income level is assessed on the basis of income tax returns. But in case of business finance, banks depend on management's worth, expertise, market reports, future business projections etc.

All these parameters are properly appraised before according sanction to a proposal. Risk is assessed and accordingly pricing and litigants are proposed. Accounts go bad many a times. This is business. Banks give sufficient time, restructures too for assisting the borrowers. The problem of NPA, has become uncontrollable.

Stricter rules and regulations are the need of the day. Recovery atmosphere is polluted many times by the political interference. The recovery responsibility of Government sponsored schematic finances should be of government authorities.

It is not correct to say that simple and honest persons are troubled by banks, especially, nationalized banks. Subsidies should be linked with timely repayments. Banks, the spinal chord of the economy, of the country should enjoy autonomy in true sense.

Use of physical force as a means of recovering loans by banks should be strictly dealt with as it is unconstitutional and literally a case of white collared hooliganism.

Instead a bank should do a thorough background check of the borrower so that the risk of default is minimized.

Also the government should encourage PSU banks to offer loans on cheaper interest rates and flexible EMIs so that it is easier for an individual to repay any loans.

Stringent laws should be enacted against people who default deliberately so that banks can have a upper hand when dealing with such people.

Hi Friends, According to me three types of people are exist in India. One who are able pay their loan and they are even paying on time 2nd thosse who want to pay loan but they are not able to do because of some financial problem And Last one are those who never want to repay their loan. So I Think Bank should be careful when they are giving Loan to people. And bank should give much more time to 2nd type of people to pay their loan before taking any strong action But immediate take strong action against 3rd type of people.

The solution is very simple ...banks must do their homework nicely before giving loans. Forcing customers to repay the loans show that bank failed to judge the customer at the time of granting the loan. and if the customer is not repaying even if he is capable then the bank should take legal action or may get the money back forcefully.

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.

I think there is no matter of using force because one who is taking loan is committed to return the same but due to some unavoidable circumstances some time he may not be able to return the same within the stipulated time, but as and when he is capable to return he returns, in case he cannot return then the guaranteeing person can be asked to deposit the same.

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.