In today’s time, inflation is so high that if you go to do any work, then you need a lot of money. Amidst these situations, it is not easy for the middle class people to do everything with their earnings. Therefore, to meet all the needs like house, vehicle, they take loan from the bank. His work is also done with the loan and every month his installment along with the interest is deducted from his account. But suppose you have taken a home loan and you are faced with such a situation that you are not able to pay the loan installments. In such a situation, what could be your loss, do you have any idea about this? No, then know-
First the bank sends you a reminder
If you do not give two EMIs of the loan, then the bank first sends you a reminder. If you default on three consecutive installments of your home loan, the bank sends you a legal notice to repay the loan. But even after the warning, if you do not complete the EMI, then you will be declared a defaulter by the bank.
Credit score is affected
If you do not repay the loan on time, then it affects your credit score and your record gets spoiled. On the basis of credit score, all the banks decide whether the loan should be given to the person or not and at what rate of interest it should be given. If your credit score deteriorates due to non-payment of loan, then you will not get loan easily in future. Even if you have taken loan through jugaad, you will get loan at higher interest rates with strict terms and conditions.
Mortgaged property comes in danger
Whenever you take a home loan or any secured loan, the bank pledges your property against it. In home loan, most of the people deposit the papers of the same property in the bank, for which they take loan to buy. Until the loan is repaid, the property papers remain with the bank. If the person is unable to repay the loan, then the bank has the right to recover the loan by selling that property. In such a situation, your mortgaged property comes in danger. The bank can take possession of your mortgaged property. This is the right of the bank.
Auction is the last option
The borrower is given a lot of time by the bank to repay the loan. But if the borrower is still unable to repay the loan, the bank sends reminders and notices to him. Even after this, if the borrower does not pay the loan, then the bank takes possession of his property and then auctions it. That is, the bank gives many opportunities to repay the loan, yet in case of non-payment, the loan amount is recovered by auctioning the property.
