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Bank agents are bothering more for loan recovery, so complain like this, know what are the rules

Loan Recovery Laws In India: If you have taken a loan from any bank or financial institution and are you being harassed to repay the loan. Are you fed up with the behavior of loan recovery agents? Then this news will prove to be useful for you. You also have some legal rights with the help of which you can complain about them and get action taken against them.

RBI has also warned
Let us tell you that the Reserve Bank of India had recently asked all the banks to improve the behavior of their loan recovery agents. Attempts to prevent incidents of threatening, harassing, misusing personal data of customers taking bank loans have also been said earlier. In this regard, RBI has also issued a new circular for banks and financial institutions.

Complain to the recovery agent
If you are troubled by the misbehavior of the bank recovery agent, then you do not need to be afraid, rather you should raise your voice against it. RBI has made some rules on this matter. Under this, if a bank intimidates and threatens customers in case of non-payment of loan amount. So customers can complain about this to the police. You can demand penalty for this.

what is the rule
If you do not pay two EMIs of your loan, then the bank first sends you a reminder. Bank will send you a legal notice for non-payment of 3 consecutive home loan installments. Also, if you do not complete the EMI despite the warning, then you are declared a defaulter by the bank. After this the bank starts recovery of loan from the customer.

This is how loan recovery happens
If a person is unable to repay the loan, the bank starts the recovery. In this, the bank first resorts to the non-judicial route and secondly through the judicial process. Legal rights and obligations of customers to be respected during recovery as per RBI guidelines

complain like this
If the loan recovery agent of the bank intimidates or threatens you about the loan, then you should complain about it to the bank as well as the police station. Let us tell you that not being able to repay the loan installment comes under the purview of civil dispute. In such a situation, the bank or any of its recovery agents cannot do their arbitrariness with the defaulter. The bank officer or recovery agent can call the defaulter only between 7 am to 7 pm. This will also be the time to come home. If the bank representative does not do this, then you can get the complaint done by calling.

What are the guidelines of RBI

    • Banks should inform the customers about the details of the collection agency (bank or financial institution) well in advance.
    • The bank agent will have to keep a copy of the authorization letter and the bank’s notice at the time of meeting the defaulter.
    • If a complaint has been lodged by the borrower, banks are not permitted to send recovery agents in the matter until the said complaint is resolved.
    • The Bank shall ensure that the grievances of the borrowers with regard to the recovery process are properly addressed.


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