Tag: Rbi Rules

If you’ve taken out a personal loan in India, understanding the potential fallout for not repaying is crucial. Non-repayment can lead to serious financial challenges, prompting legal action from lenders. This may involve court orders, demanding full repayment or facing penalties like wage garnishment or asset seizure. Moreover, your credit score can be adversely affected, making it tougher to secure future loans. Late payment fees and possible interest rate hikes further compound the consequences, with potential involvement of debt collectors if payments become overdue, causing stress and harm to your reputation.

The RBI prohibits harassment by recovery agents to protect borrowers’ rights and ensure ethical debt collection. Knowing your rights, maintaining records, and seeking professional advice can help navigate recovery challenges effectively.