If you have taken a car loan, make sure you do not skip the equated monthly instalment (EMI) payments on the loan. Or else, your bank may seize your vehicle and auction it.
With an increase in bad loans, State Bank of India is taking a lead in the recovery initiative.
For the third time in the current financial year, SBI conducted the auction sale of seized vehicles on Wednesday.
SBI Retail Assets Credit Processing Centres (RAPC) seized 10 vehicles during the April-May 2015 period. After giving the defaulting borrowers sufficient notices, three seized vehicles were put for auction at the administrative office premises in the bid-cum-open auction and transparent auction sale. About 10 people participated in the auction.
The auction was conducted in the presence of senior bank officials. Chief manager K.V. Krishnaiah declared the successful bidders who participated in the bid-cum-public auction.
Earlier, SBI RAPC auctioned five vehicles during the current financial year.
Previous financial year, the bank’s RAPC auctioned 34 cars.
Deputy General Manager of bank, Nayak said that the bank was giving sufficient notice and opportunity to regularise the accounts before seizure of the vehicles. Assistant General Manager P. Ravindra Prasad said that the repayment discipline among car loan borrowers had improved significantly during the past 15 months due to the efforts of RAPC.
Conducts auction of seized vehicles for the third time in
the current fiscal
