Archive · 24 Nov 2025
Court penalizes loan defaulter in Andhra Pradesh
A person in Andhra Pradesh took a loan but didn't pay it back.
The company that gave the loan, Navi Finserv, took them to court.
The court said the person had to pay a big fine of Rs.
83,000.
If they don't pay, they could go to jail for six months.
The law says that not having enough money in your account for automatic payments is like bouncing a cheque, which can lead to fines and even up to two years in jail.
This shows that not paying back loans is serious and can cause big problems.
Navi Finserv took a customer to court for failing to repay a loan.
The court imposed a penalty of Rs. 83,000 on the defaulter.
The defaulter faces a threat of six months' imprisonment for non-payment.
Under Section 25 of the Payments and Settlements Systems Act, 2007, an eNACH bounce is treated like a cheque bounce.
Loan defaults can result in fines, property seizures, and long-lasting consequences.
- Who
- A customer of Navi Finserv
- What
- Defaulted on a loan repayment
- When
- Recently (specific date not mentioned)
- Where
- Andhra Pradesh, India
- Why
- To emphasize the legal consequences of loan defaults
- Defaulter Penalty
- Rs. 83,000
- Imprisonment Threat
- 6 months
- Maximum Imprisonment
- 2 years
- Act Cited
- Payments and Settlements Systems Act, 2007
- Section Cited
- Section 25
- Company Involved
- Navi Finserv
- Location
- Andhra Pradesh