While approaching to banks or financial institutions for a loan, the borrower first gets introduced to the loan payment rules and regulations. Whenever, it comes to any financial or money deal, organizations put a list of rules and regulations to be followed to avoid future slip-up. However, while expecting from borrower to follow loan payment rules, Banks completely ignore the rules to be followed by them. Due to which ultimately, the borrower comes under the pressure of loan payment rules and become NPA.
Reserve Bank Of India has set some national loan recovery rules for Indian Banks & Financial Institutes, which they have to follow while dealing with borrowers for loan recovery. However, it seems in a hurry of getting due loans recovered, the banks are completely overlooking the basic rules of the whole loan game.
For example, if you are an entrepreneur of your respective business, you have taken a loan from a bank, due to some financial trouble; you couldn’t pay the bank since last three months as a result under SARFAESI act bank has put you into the defaulter list and sent you recovery notice. In such situations, due to lack of knowledge about the banking rules and act, majority of entrepreneurs get scared or come under the pressure of repayment. However, the way banks can send you recovery notice under SARFAESI act and ask for immediate payment, under the same act you as a borrower can raise objections to the recovery notice and it is mandatory for banks to respond to these objections in 14 days. In majority of cases, banks don’t convey this rule to borrowers to save their side.
While dealing with borrowers, banks just overlook the rules allocated to them and pressurize the SMEs to pay back the loan amount in restricted duration. Hence, NPA Consultant Pvt. Ltd suggests SMEs to have knowledge about banking acts and rules issued by RBI and make sure banks are following them. Don’t get misguided by banks, be informed and save your business.
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