What Is Process Of Recovery Of Home Loan?

My brother opted for a home loan from DHFL. However, he was not aware of the DHFL home loan recovery process. It was during this time that my sister with her banking experience helped him with the home loan recovery process India. I’d gladly like to share the same with you all.

Lending institutions start loan recovery procedures when borrowers are unable to make loan payments.

RBI guidelines for home loan recovery rules ensure that as long as the borrower's legal rights and obligations are respected, the process of loan recovery will be advantageous to the lender.

• By way of legal channels

• Through a non-judicial route

Loan recovery agents are prohibited from harassing borrowers and must adhere to strict legal requirements;

• When hiring loan recovery agents, banks are required to follow a due diligence procedure, and they are also accountable for any complaints lodged against them.

• Borrowers must first be informed of the specifics of the recovery agency.

• When seeing the defaulter, the agent must also bring the letter of authorisation and a copy of the bank's notification.

• Banks are not permitted to forward a complaint that the borrower has filed to a recovery agency until the complaint has been resolved or dismissed.

• However, this is reversed if the bank is persuaded by the evidence that the allegations are baseless.

• The bank must also make sure that complaints from borrowers about the recovery procedure are handled properly.

DHFL home loan recovery process is quite easy with simple documentation processes. It also follows the same guidelines provided by RBI.

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