Are public sector banks more lenient about EMI defaults than private banks?
When compared public sector banks may be less aggressive, but that should not be assumed as being lenient
Are public sector banks more lenient about EMI defaults than private banks?
Rajesh Kumar, Bhopal
If you are a borrower your intent should be to repay the loan and not look for ways to delay repayment or default on repayments. A lot also depends on the type of loan you have taken and the repayment period. For instance, if it is a personal loan, you could face loan recovery agents knocking on your door after they have done the usual number of calls and chase the repayment. Yes, these are not permitted, but the loan contract also states that you will be repaying as stipulated, in a timely manner.
There is little difference between public sector and private banks when it comes to loan recovery in case of EMI defaults. Compared to private banks, public sector banks may be less aggressive, but that should not be assumed as being lenient. When borrowing money, your intent should be to repay in time, which means you should also borrow only what you can afford to repay.