Personal loan/credit card

1. What are my rights as a borrower? 

You can request the bank to rephase your loan duly explaining the reasons for your not being able to pay the dues. Request for rephasing is not a matter of right and it is the discretion of the bank. However, normally banks do consider rephasing the loans in deserving cases.

2. What steps do I have to take for the negotiation with the banks and what steps bank can take at present.

     Normally, with one or two installments not paid, banks try to persuade you to repay the loan at the earliest. In drastic cases where the Prime Security ie. the asset purchased out of the loan is alienated/sold banks may take recovery steps immediately.

You may go to the Bank and discuss the matter with the Branch Manager giving them a reasonable and realistic plan of your repayment duly explaining the reasons for your non-payment now. You may give the same in writing also.

3) Is the cheque bounce case a CIVIL or CRIMINAL case? 

If the cheque is given for repaying debt, it shall be a Criminal Case under Section 138

Greetings!

The above queries are answered in accordingly,

1. A request for a grace period or a rearrangement of paying schedule can be requested from the bank.

2. Bank can liquidate your assets which has been considered for granting of the loan. But beforehand it should be notified. 

3. Bounced cheque creates Criminal liability which comes under criminal actions/suits. 

Regards,

Kawmini Liyanage 

A borrower is not having any rights as assumed by you, you are having duties and responsibilities to repay the money borrowed to the bank and can open negotiation for a compromise by making such an application to the superior officer of a bank.  You have the right to defend against the bank only if the bank oversteps the authority and you are on the correct side without violation of the CC Agreement.  The loan must have been secured with some stocks as you have mentioned CC (Cash credit) and it appears that the securities are diluted by you.  Cheque bouncing is both a civil and criminal case.

Answer to your question paper is as under:-

1) What are my rights as a borrower.

Nil / NO right(s).

2) What steps I have to take for the negotiation with the banks and what steps bank can take at present. 

Discuss with the bank for rescheduling EMI if they agree.

Bank shall issue notice for recalling outstanding amount.

3) Is cheque bounce case a CIVIL or CRIMINAL case? 

When suit for recovery is filed it is a civil case.

If it is filed under the provisions of Section 142/ 138 of Negotiable Instruments Act, 1881 it is governed by its provisions and under Criminal Procedure Code, 1973 (where ever NI Act is silent).

repeated

https://www.lawyersclubindia.com/experts/personal-loan-cc-default-746501.asp

Originally posted by : Philip Duncan

"Goat milk products will be the best moisturizer you have ever used! It nourishes your face, hands and body. Absorbs quickly and leaves your goat milk skincare products and feeling soft not greasy. You don’t need much a little goes a long way." 

 Admin LCI may try and post its result, if any ?