Use of Force by Banks to Recover Loans

Though there are many options, using force is more viable that too for cheaters who has gone abscond. Proper customer evaluation mechanism should be in use to prevent this case at the beginning stage. Risk profiles should be created and should be cautious with customers placed under high risk category. Wat if the person with high credibility becomes bankrupt? there's no other way than to own the security pledged by the defaulter. But if it's an unsecured loan which is given on the will of the manager judging the customer's credit worthiness? The only way is to recall by force but it may have negative impacts which may make the customer to take hasty decision like ending his life. So it's up to the management to make the advance after looking at various security concerns.

Hi Friends, according to my view bank have no right to send goons to the customer's door. Bank first check the credit of the person who is coming for loan. Only on the bases of person annual income and its others property, bank should give the loan. On the same time bank should tell all its condition regarding the loan to the costumer. Before last date bank should call the costumer and recall him about his/her loan and said to him to pay loan at the time. If any one is fail than banks should first give a legal notice to the costumer after that bank should make a case against him in court. FORCE is not the solution of such these condition.

Hello friends,

Your point of views are very nice. I learned a lot. In my view, the bank is having trust on public and lending the money, not only they are believing the trust they asked for proofs, if they are sufficient with collateral security. As my friends said it is not a charity right, if the loan is paid back then only again money will get circulated.

So the people who roaming like anything to get the money they should take initiative to repay the loan at the same time. It cannot be forced but people should itself think otherwise they will lose their security simple. So if is paid properly they only they will get it again. If bank it utilized in a proper way everything will be fruitful.

Dear Reader,

There is a provision of law in India for taking debt from the bank, if someone fails to deposit the debt then that person is liable for that, the bank should know why he is unable to pay their installment. Then the bank recovers it timely by the person as person problems, if he is avoiding and pretending deposit the money then the bank force it to deposit the money.

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.

Sandeep, I agree with your point, that bank should check the credit worthiness of an loan seeker before granting them the advances. There is a agency called Credit Information Bureau India Limited (CIBIL) which provides credit history of an individual (if he is not applying for the loan or any type of credit for the first time) bank check their credit report and also ask individual for some colletral securities so that the risk of credit default could be minimized.

Arun, I appreciate your words but think of the situation when people needs money. They are not just taking it for the comfort of their life, they are taking because they are in need. Firstly the bank should take note of the property available with the customer. If the customer don't have enough property they should not be given loan. But this is also not a solution, the bank should impose different loan interest to different customer depending on the annual income. This might solve the problem.

Through the.

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.

It is in the financial institutions' hands, whether to give loan or not to a particular persons. If it undergoes a wide analysis of the persons ability to repay the loan within a particular time then the banks can give loan with confidence. My point is to the banker's side that they should perform a feasibility study before offering loan to a particular person.

No, they should not do as.

If there is a time limit and after that, they are not paying the loan they should make EMI accordingly.