Written By: Mobin
Missing loan EMIs? Don’t panic! Know the legal consequences and smart steps to manage repayment before banks take action.
Defaulting on loans is a civil issue, not criminal. Banks can recover dues via property seizure or income deduction—but no jail for just non-payment.
If your check bounces (Sec 138 NI Act) or you commit fraud (IPC 420), you can face arrest. Always repay loans honestly!
Banks must give notice before legal action. RBI guidelines ensure fair treatment—ask for restructuring or EMI extensions if struggling.
Banks may file a civil suit to recover dues. Avoid check defaults or fraudulent loans—these can lead to criminal charges & jail time.
Contact your bank immediately if repayment is hard. They may offer lower EMIs, longer tenure, or settlement options—dialogue helps!
Never ignore loan dues! Restructure payments, avoid fraud, and clear debts legally. Act now before penalties worsen your situation.