Unable to repay loan? Legal rights, viable steps that defaulters must follow
RBI warns about risks of retail unsecured loans as delinquency in personal loans rises. Defaulters should seek help, banks must handle cases with empathy.
Recently the Reserve Bank of India (RBI) issued a warning note highlighting the risks associated with retail unsecured loans. Validating the RBI’s concerns, The Credit Information Bureau (India) Limited (CIBIL) report also shows that for the quarter that ended December 2022, personal loans and credit cards, which are largely unsecured, rose the sharpest. But what’s more alarming is that delinquency in this category has risen for personal loans compared to pre-COVID levels. Now the burning question of the hour -What do you do next if you are a defaulter? This can be a very stressful experience for many people who don’t know how to handle harassment from loan recovery agents.