I have two accounts with bank
3 months ago
I have two accounts with bank , one is cash credit and another is home loan. Unfortunately the cc loan account renewal has got delayed and has this turned NPA. Because of this my home loan account has also turned NPA. Now bank is threatening me to take possession of my house because of my cash credit turning to NPA.
Can the bank issue notice for home loan account which is standard account due to cash credit loan which is NPA?
A.Dear Sir,
The Bankers now given full powers for recovery of loans if there is default and your account has already become NPA. Better go to DRT.
The Bankers now given full powers for recovery of loans if there is default and your account has already become NPA. Better go to DRT.
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A.Dear Client,
Both cash credit accounts and home loans are considered debt and once the repayment of a loan stops or bounces for consecutive 3 installments, The Bank initiates a routine course of action for recovery of the loan from the borrower marking both the loan/debt as a bad loan/NPA for recovery of debt from the borrower following the provision under the SARFAESI Act and the order of Debt Recovery Tribunal directing attachment of secured assets of the borrower. However, you may negotiate or settle your dues against loans by following the steps like lowering your interest rate, arranging for a reduced interest rate is one of the most common requests a defaulter borrower can make to the Bank, creating or restructuring a repayment plan or extending the tenure of repayment of a loan, looking for debt forgiveness. considering loan consolidation, offering a one-time settlement payment. Following these steps, you may write an application requesting for settlement of dues to the concerned Bank stating why you cannot repay your outstanding dues lying against the loans. Also, write that you want to explore alternative repayment terms. Specify the amount that you can pay, as well as what you expect from the creditor Bank in return. A good starting point for negotiation could be offering around 30% of the amount that you owe. However, if they did not pay any heed to your appeal, then you need to bring the matter to the notice of the concerned Bank and its higher authority and the regulatory authority, RBI online on its grievance redressal portal under the integrated Banking Ombudsman Scheme either online or offline. A complaint can be made at https://cms. rbi.org.in or by calling the helpline number 14440. The complaint may be lodged online or by filing an offline complaint and submitting the same at the Centralised Receipt and Processing Centre (CRPC) at RBI, 4th Floor, Sector 17, Chandigarh, PIN-160017. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path to resolve or settle the matter.
Both cash credit accounts and home loans are considered debt and once the repayment of a loan stops or bounces for consecutive 3 installments, The Bank initiates a routine course of action for recovery of the loan from the borrower marking both the loan/debt as a bad loan/NPA for recovery of debt from the borrower following the provision under the SARFAESI Act and the order of Debt Recovery Tribunal directing attachment of secured assets of the borrower. However, you may negotiate or settle your dues against loans by following the steps like lowering your interest rate, arranging for a reduced interest rate is one of the most common requests a defaulter borrower can make to the Bank, creating or restructuring a repayment plan or extending the tenure of repayment of a loan, looking for debt forgiveness. considering loan consolidation, offering a one-time settlement payment. Following these steps, you may write an application requesting for settlement of dues to the concerned Bank stating why you cannot repay your outstanding dues lying against the loans. Also, write that you want to explore alternative repayment terms. Specify the amount that you can pay, as well as what you expect from the creditor Bank in return. A good starting point for negotiation could be offering around 30% of the amount that you owe. However, if they did not pay any heed to your appeal, then you need to bring the matter to the notice of the concerned Bank and its higher authority and the regulatory authority, RBI online on its grievance redressal portal under the integrated Banking Ombudsman Scheme either online or offline. A complaint can be made at https://cms. rbi.org.in or by calling the helpline number 14440. The complaint may be lodged online or by filing an offline complaint and submitting the same at the Centralised Receipt and Processing Centre (CRPC) at RBI, 4th Floor, Sector 17, Chandigarh, PIN-160017. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path to resolve or settle the matter.
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A.Dear Client,
In such a situation, it's essential to take immediate action to address the NPA status of your cash credit account and prevent any adverse consequences on your home loan account. Communicate with your bank to understand the reasons for the delay in cash credit renewal and discuss potential solutions. Request a detailed explanation of how the NPA status of one account affects the other, especially if your home loan account has been diligently maintained. Seek clarity on the specific terms and conditions governing these accounts. If necessary, consult with a financial advisor or legal professional to understand your rights and explore options for rectifying the NPA status. Promptly addressing the issue and working collaboratively with the bank may help mitigate the potential risk of possession of your house due to the NPA status of the cash credit account. Keep all communications documented for reference.
Thankyou
In such a situation, it's essential to take immediate action to address the NPA status of your cash credit account and prevent any adverse consequences on your home loan account. Communicate with your bank to understand the reasons for the delay in cash credit renewal and discuss potential solutions. Request a detailed explanation of how the NPA status of one account affects the other, especially if your home loan account has been diligently maintained. Seek clarity on the specific terms and conditions governing these accounts. If necessary, consult with a financial advisor or legal professional to understand your rights and explore options for rectifying the NPA status. Promptly addressing the issue and working collaboratively with the bank may help mitigate the potential risk of possession of your house due to the NPA status of the cash credit account. Keep all communications documented for reference.
Thankyou
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