Use of Force by Banks to Recover Loans

First of all the financing should be prudent. There is no scope for the banks to use force, but for willful defaulters the Legal remedies should be enforced strictly and timely to recover the public money.

There are people enjoying the bank loans without repaying, despite having means to repay, there the tools available to the banks should be used "efficiently" and professionally.

Hi Friends, According to me in India three types of people exist. First who are poor, 2nd who are middle class and 3rd who are rich. Loan are those people who are needy. Banker always try their force on poor and middle class people who sometimes unable to pay loan due to some strong reasons. But bankers not say anything to rich people. Bank should try to understand the problem of needy people. Instead of using force Bank try to give them some more time to pay back loan.

HELLO,

Myself completely disagree with the statement. Use of force to recover loan is false statement. Because banker can apply force to main on farmers and small business owners.

1. For above category are always willing to pay the all loan amount regularly if no unforeseen things happen.

2. But for the case of big business man and millionairess never pay loans. So many examples are there.

I conclude that only bank can take documentation perfect that payout period completed then recover by law should be clear.

Hello,

Banks are acting as a trustees and not as a owner of the funds. The loans are given from the deposits made by the public in general. Moreover, in present scenario the banks are also answerable to its shareholders. The bank finance is not a charity. It is given to the needy person only after the request of a person.

However, before sanctioning the loan to any person/institute, the bank should thoroughly examine about the project and its viability. If it fails to do so, there are more chances of getting it bad. There are number of elements, which effect the recovery of the loan. If a person/institute is financially sound and yet not repaying the loan they are willful defaulters and bank should take strict actions against them. For the reasons above control, if the project fails, bank should take lenient actions and try to rehabilitate them.

Hence, only after considering the reasons for failure of loan, bank should take proper action to recover the money.

Thank you.

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.

As per my opinion bank should try to know that why customer are not able to pay and what are the reason. If customer have some financial problem than they should make EMI accordingly to recover lone amount because they have given lone on interest and its is very high.

In My Opinion. This is a Wrong way to use Force by Bank to recover Loans.

Because There Are Different types of Peoples in India According their Profession.

Some Peoples Are Good Business Man, Some Are Employee, Some are Farmer & Other Are Poor & unemployment.

First of All. If a Person Do not Repaying their Loans Payment, a Bank Should Know About Why He/She is not Repaying their Loan Payment. If His Condition is Critically So A Bank Should Create A Settlement letter to recover their Loans. If After the Settlement Letter, Person do not repay their Bank Loan Payment. Then A Bank Should Send a NOTICE to a Person Who take the Loan as Legally.

If After that He/She is not able to Pay Their Loans Payment. Then A Bank Should Create A Legal Notice That If A Person Have Son/Daughter, if He/She is above Age Or Under Age of 18, Then He/She Would Fulfill His Father/Mother Loans Payments Time To Time. If His Son/Daughter Will Not Repay Their Payment then Company Will Take A Strict Action Against Him/Her.

& A Bank Will be Liable To Seize His/Her Whole & any type of Property Legally.

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.

Right now in Bangladesh there are a lot of banks and financial institution are playing in the same fields. Every banks or financial institutions has set high target in terms of disbursement or profit maximization. The high target set is the main problem from the banks or FIs side. To maintain this, the officials of the these institutions make unhealthy competition in the market. For example- "X" Bank disbursed a certain amount of loan to a particular good customer with high creditworthiness. But the "Y" bank approach to the same customer I will be you loan just double of the "X" bank and You need not to liquidate the loan of bank "X" loan.

In that case, the borrower cannot properly use the fund or somehow get the scope to divert the fund because his/her business doesn't require excess fund. In that case he/she can not maintain or repay both the bank loan installments properly because the business is not generating the expected cash flow.

So I will emphasized on the relationship banking (Customer-bank) activities besides high credit worthiness of the customer. Relationship banking can prevent default of the loan.

First of all we should bifurcate the people into two. 1) will full defaulters and another genuine. Now a days willfull defaulters have turned out a lot. Hence in order to arrest the same a slight negatativity has to spread to create awareness as well to inculcate the habit of repaying the installments on time. 2) genuine - banks have do certain provisions to cut down the rate of interest or to delay the period of repaying the loan. Finally banks are for the devolopment of the country which has great impact on the economy of the country.