Loan default: Struggling to repay your loan? Understand your borrower's rights

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defaulting on loan repayment from being considered a criminal offense, except in cases of fraud, breach of trust, or as specified by the law. He further explained that when a borrower consistently misses EMI payments, the lender has the authority to systematically inform them. Typically, banks or financial institutions are required to give the borrower reasonable notice to fulfill their payment obligation.

If the borrower still fails to meet the repayment deadline, the bank or lender can proceed with selling the asset after providing reasonable notice or as mandated by the law. 2)Defaulting on loan repayment isn't a criminal offense unless for fraud, breach of trust, or as per the law.“If a borrower repeatedly misses EMI payments, lenders maintain the right to inform the borrower systematically. Typically, banks or other financial institutions are mandated to provide the borrower with reasonable notice to fulfill the payment obligation.

Should the borrower still fail to meet the repayment deadline, the bank or lender is then permitted to proceed with the sale of the asset after giving reasonable notice or as per applicable law," explained Mayank Khera. 3)When a borrower's vehicle is seized due to loan default, it's crucial to ensure a fair valuation of the assets. In many cases, the assessed value of the asset surpasses the repayment amount.

"To maintain fairness, the Reserve Bank of India (RBI) has established guidelines to ensure equitable asset valuation processes, promoting transparency and fairness for all parties involved," said Mayank Khera. 4)If a borrower defaults and lenders try to repossess the vehicle, the borrower has the right to ensure that specific legal procedures are followed. “This includes lenders