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What is the risks and consequences involved if we default (unsecured) Business loan or personal loan

Tags: money, careers, real estate
Asked by natarajan, 02 Jun '10 05:59 pm
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Answers (1)


I am not aware of the procedures in case of business loan, but if you default on a personal loan initially you will get some remainder calls, then collection agents will visit your place and tell you or people there to make some payment either partially or fully whatever is due. Assuming you default even after these remainders or agent visits, a police case could be filed.
Now in the recent past RBI said that banks should not use collection agents to use pressure or violence, so the only other legal way is to file an FIR with police - that will be done as mentioned above. Also remember even if you flee to another city your default and its records are noted by the bank, who will pass on the information to the Credit Bureau of India (the name may be different but its definitely a credit bureau). The credit bureau records your credie standing based on credit score and will put you on defaulter list or blacklist you or make some mark on your credit report accordingly. So next time you ap ...more
Answered by NASAman, 02 Jun '10 06:46 pm

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