Multiple choice

A borrower has an immovable property and he is not repaying the loan. The bank wants to recover the loan. Then, the bank can

  1. take possession of the security for the loan

  2. manage the same or appoint any person to manage the same

  3. sell or lease or assign the right over the security

  4. All of the above

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (also known as the SARFAESI Act) is an Indian law. It allows banks and other financial institutions to auction residential or commercial properties to recover loans. Bank may take recourse to one or more of the above measures.

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