A vehicle in India is more than just an asset. It is often essential for commuting to work, transporting children to school, or even earning a livelihood.
This is why receiving calls from recovery agents or notices from lenders after missing a few loan instalments can be deeply stressful.
Understanding your rights as a borrower can help avoid panic, challenge unlawful recovery practices and, in some cases, even reclaim their vehicle before it is sold.
Can a bank repossess your vehicle after missing one or two EMIs?
One of the biggest fears among borrowers is that a single missed EMI could result in the lender taking away the vehicle.
Experts say that is generally not how the process works.
“A lender cannot ordinarily repossess a vehicle immediately after a borrower misses one or two EMIs without following the process laid down in the loan agreement and its board-approved recovery policy,” says Ankit Bagadia, Director – Business, BankBazaar.
