This credit facility is designed to provide monetary assistance to borrowers without any hassle. The home loan process is brief and reasonable. The documents required are minimal, and the cost charged is affordable. Anyone can get to know about this facility through the web. For instance, any information related to Oriental Bank home loan can be accessed online.
It also has the facility of using the home loan EMI calculator to determine the estimated monthly obligation of the credit taken from the lending institution. With many benefits comes specific responsibilities as well.
The repayment structure is workable during the home loan but has to be adhered to honestly. Any possibility of non-compliance should be acted upon immediately. Many times borrowers get terrified of the defaults, and due to this reason, they would instead not borrow funds. The borrowers should know that they wouldn't be doomed if they miss out on a payment.
They have some rights that they can deploy when needed. Some rights are :
Right to prompt redressal: If the borrower has communicated the problems they face to the financial institution (banks and non-banking financial companies), then the lender is obligated to address the issue. They need to find a resolution plan within thirty days as per the rules and regulations. The inquiries or objections raised by the individual or entity concerning the resolution layout or the auctioning of security have to be acknowledged and responded promptly.
Right to receive notice: The borrowers have the right to be notified before the lending institution takes any action, considering that the borrower has provided a proper and timely intimation of their inability to the lender. Suppose the borrower has not paid monthly installments for three months consecutively. The lending institution (banks and non-banking financial companies) has to notify the borrowers and provide them with a notice period of 60 days. The lenders have to mandatorily provide this time by giving the borrower an ultimatum and confirming with them. During the notice period, the lenders are not allowed to auction off the collateral.
Right to communicate with the lender: The borrowing individual or entity can notify the lender in case they are having a hard time following the initial payment plan agreed on initially. The lender provides flexibility in modifying the repayment structure. The borrower has nothing to worry about if they have adhered to the rule and exercised their right to communicate with the financial organization regarding the payment plan. They can request the lender to renegotiate or restructure the loan terms and conditions and salvage the situation. The lending institution can even accommodate the borrower with a resolution plan.
Right to the fair auction of collateral: The financial organizations (banks and non-banking financial companies) have the power to auction off the security pledged by the borrowing individual or entity when they are sure of their incapacity to make further payments and settle the debt, and they have acknowledged the notice. The borrower has the right to be informed about the proceedings and that the collateral is assessed moderately as per the current market price and then sold. Fair assessment should be done by the lending institution.
Right to unbiased treatment: The risk of default is always there, whether it is a secured or unsecured loan. The defaults made by the borrowers can be due to certain situations beyond control. The lender must entertain the defaulting borrower humanely. Making defaults does not make the borrower any less human, and the borrower should not be viewed any differently from other borrowing individuals or entities.
The rights stated and discussed above are for the borrowers to understand and sink in. These rights can be helpful if the individual or entity has omitted a few payments and are not sure what to do next. These will guide them in any such situation.
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