Lenders also have rights:
1. Right to recover loan amount
– The lender has the right to recover any amount it has given to a debtor. Remember that is their capital and without getting that money back, they shall collapse.
2. Right to recover agreed interest
– In addition to the principal, there is always an agreed interest. The company has the right to recover this interest as well. The Interest is the reason why the company agreed to give its money as loan and is therefore entitled to get this interest back as profit.
3. Right to report defaulter to credit reference bureau
There are a number of credit reference registers in Ghana currently. These registers help banks and lenders to know if a person has the habit of taking loans and not paying before giving them loans. When you default in paying your loan, the company has the right to send your information to the CRB so they flag you as a bad customer in order to avoid the situation where other companies may give you more loans only for you not to pay.
So you would find in all the loan agreements that there is a clause that says you agree for your information to be given to a credit reference bureau.
4. Right to take over a secured security under the loan agreement
Some loans are secured by a property. Previously, you needed a court order as a lender before taking over a security. But currently, under the provisions of the Borrowers and Lenders Act, the lender can register the security with the Collateral Registry of the Bank of Ghana. This allows them to go through a short procedure to take over the security when you fail to pay the loan.
This does not apply to all kinds of properties and when you consult a qualified lawyer, they will be able to help you identify which type of property can be taken without court order and which ones cannot.
5. Right to sue defaulter
A loans' company or individual has the right to sue any person who has taken loan defaulted in paying the loans.
6. Right to Execute judgment upon success
Upon success at the court, the next step is for the loans' company or individual to come and execute the judgment. Execution can involve attaching your Bank account (Garnishee), attaching your property (Fife) etc.
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