Unable to Repay Your Loan? Here are Your Rights as a Borrower


Bangalore: Are you a loan borrower and unable to repay it on time? It doesn't mean you have to get stressed and harassed for it. There are some rights as a borrower set by the Banking Codes and Standard Board of India (BCSBI), in association with Indian Banks Association (IBA) that you can exercise if you are not able to repay your loan. The code of conduct towards the borrowers by banks demonstrates the guidelines for the loan recovery for the bank.

Sufficient Notice

The bank should inform the borrower about his dues, legally with a formal notice, along with a sufficient notice period for payment. It should provide a minimum notice period of seven days before initiating the loan recovery process against the borrower.

Time of Calling

The bank cannot call the borrower at any point of time in a day. The borrower can only be contacted between 7a.m. and 7 p.m., and also the bank must keep the records of time of calls, number of calls and also the content of the conversation. Moreover, if the borrower requests the bank not to call at a certain time or place, then the bank should honor the request.

Civil Behavior

Bank representatives should not yell or use abusive language towards the borrower. Any kind of physical bullying or violence will be considered as criminal offence. They also, must respect the customer's privacy and hence should not embarrass him by confronting the due details in front of others.

Place of Contact

It is not the bank who will decide the place of conduct; rather the customer decides the place. If no such specific place is decided then the bank representative can meet the customer at his home. If the borrower is not found at home then he can be contacted at his workplace.