If the loan is not repaid, then auction may come, these challenges will have to be faced

If you have taken a loan from the bank, then it is very important to repay it on time. If you are not able to repay the loan on time, then you may have to face many problems along with the auction.

If you have taken other types of loans along with buying a house, then you have to repay the loan taken from the bank because if you do not repay the loan of the bank, then you may have to face the auction. Along with this, you also have to face many challenges. Let us tell you that whenever you buy or build a house, you take a home loan, similarly you take a car loan when you buy a car, etc. Such loans are classified as secured loans because in return for these, you have to pledge some property with the bank as a guarantee. If you have taken a loan from the bank, then it will also have to be repaid on time. If you are not able to repay the loan on time, then the bank can start taking action against you and you may be in trouble.

Bank gives information first

If you are not able to pay two EMIs of the loan due to any reason, then the bank first informs you. If you miss 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. After this you will never get loan from any bank. If you do not repay the loan on time, then it spoils your record and worsens your credit score. In such a situation, you will not be able to get loan easily from the bank next time. Even if you somehow took a loan from Jugaad, then you will get a loan at high interest rates with strict terms and conditions.

NPAs before auction

If the bank or the financial institution from which you have taken the loan, if you do not deposit three consecutive installments of that loan and do not pay the EMI even after the warning of the bank, then the bank considers the loan account as NPA. In case of other financial institutions, this limit is 120 days. In such a situation, whoever is the defaulter, a legal notice will be sent to him. In this, the dues are asked to be paid within the stipulated time. If you still do not repay the loan, then in this situation the property mortgaged by you will be auctioned.

Mortgage property may come in danger

In a secured loan, the property is mortgaged so that in case of non-payment of the loan, the bank can sell the property and repay the loan. 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. Therefore, in such a situation, to save your mortgaged property, you will have to repay the loan taken from the bank. After this, you can save your property from an auction-like situation.

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Bank gives many opportunities

A lot of time is given by the bank to the borrower to repay the loan. But if the borrower is still unable to repay the loan, then the bank is sent a reminder and notice to him. Even after this, if the borrower does not pay the loan, then the bank takes possession of his property and auctions it. That is, the bank gives many opportunities to repay the loan, yet in case of non-payment, the loan amount is reimbursed by auctioning the property.