Can Bank Take Legal Action After 14 Years Of Loan Default?

Can a bank take legal action after 14 years in a loan default matter?

Answers (2)

Tanya Mahajan

  • Sector-1, Noida

Yes, the bank can take the legal action after 14 years of loan default. If a borrower is unable to maintain the terms and conditions of his loan, he can request the lender to relax the same. This may lead to a reduction of charges, lowering of interest rate, lengthening of the loan tenure, a moratorium on interest, etc.

Answered on 30 Mar 2020


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Karishma Pandit

  • Sector-1, Noida

Lenders to companies which are under stress could now have three options to deal with them if they default on loans: take a haircut as part of a one-time settlement, restructure the loans for a longer tenure as they did when corporate debt restructuring schemes were allowed, or go to the Insolvency and Bankruptcy Code

Answered on 27 Mar 2020


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