Non-Banking-Finance-Companies NBFCs and banks lure people through mobile-calls for getting unsecured loans without any collateral security on post-dated cheques or banking-instruction for auto electronic-clearing for Equated Monthly Installments EMIs.
But when are somehow not able to clear EMIs on presentation, then these money-lending companies badly torture loan-takers through ugly threats in full voice. Legal notices sent are shown delivered by conspiring with private courier-agencies. What more, money-lending companies file court-cases in far-away cities other than of the loan-taker despite office of the company also being situated in the city of loan-taker so as to unduly harass the loan-taker.
Mobile-calls for luring such loans should be totally banned. Terms must be so regulated that these may not become suicidal for loan-takers in case of problems. There must be some maximum interest-rate inclusive of all levies, penalties etc, which must not exceed say 18-percent per annum. Any legal or court notice must be sent through Registered Post also.
It should be compulsory that any court-case may be filed or arbitration-proceedings conducted only in the city of loan-taker in case office of money-lending company is also situated in the same city. There must be a total ban on financing of NBFCs by private or public-sector banks for further mahajan-like torturing money-lending business. Best is to totally ban concept of unsecured loans.
Courts must not be allowed to become torturing recovery-agents for these money-lending companies, and provisions of section 138 of Negotiable Instrument Act regarding cheque-bouncing must not be applicable for unsecured loans given by banks and NBFCs. Violation of such suggested guidelines by any recovery person or agency of money-lending company should be non-bailable offence.
SUBHASH CHANDRA AGRAWAL