Personal Law Default

Querist : Anonymous (Querist) 12 June 2018 This query is : Resolved
Please advise what is the punishment in India for personal loan defaulters if there is no post dated cheque given as collateral

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Vijay Raj Mahajan (Expert) 13 June 2018
For personal loan defaulters punishment is reduction of Cibil score that will make taking any future loan very difficult.

Ms.Usha Kapoor (Expert) 13 June 2018
For personal loan defaulters punishment is: their cibil score would be reduced.

K Rajasekharan (Expert) 13 June 2018
If you fail to pay a loan amount the other party can get an order from the civil court to recover the amount from you with interest. If you fail to pay the amount then also, you can be put in the civil prison.

Failure in repaying a loan amount is not a criminal offence and hence there is not direct punishment. But when a payment involves a cheque as a mode, the non payment after a due notice will become a criminal offence.

AKSHANSH SINGHAL (Expert) 16 June 2018
The impact of loan default is your CIBIL will be negatively effected and it would be difficult for you to obtain financial assistance. Apart from this, the loan recovery proceedings can also be initiated in appropriate forum.Wherein , your assets can be attached for the recovery.

Ms.Usha Kapoor (Expert) 20 June 2018
I stick to my above view.

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