Arrears on payments on a property-secured loan can trigger harsh consequences other than simple late fees. Since the loan is secured by your home or other real property, your lender has effective remedies in law at hand to enforce payment if you default. Understanding how this is done, and what remedy is available to you, is valuable to protect both your financial interests and your property.

What is default

Default occurs if you default on your equated monthly instalments (EMIs) that are timed. One or two defaults may attract only fines, while frequent default leads to escalation. Lenders will mark a loan account as a non-performing asset (NPA) in case dues are not paid within 90 days or more. This is where they gain the authority to initiate recovery proceedings under Indian law.

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