Question

what will happen if some one borrowers money and do not repay the bank

Answer 1

There are two major repercussions of failing to repay your debts.

The first one is that your Credit Score will take a beating. All credit-related information of loan owners and Credit Card users is sent to CIBIL and other credit rating agencies. They know your credit history, end to end. Every loan application today requires a reading of your Credit Score. Your application is approved only if your Credit Score is found favourable. If you default on your payments, your credit rating will go down. This will make taking loans in the future difficult, if not impossible.

Second, the property which was used as collateral for the loan can be repossessed and later auctioned by the lender after following due legal process.