Edu loan npa:urgent help needed

do u have anything in wriiting from previous manager.

if not , then u cannot do  anything but to pay the amt. it the amt is small as per ur view then why not pay it.

Sir, Its not matter  small amount.The manger commited for the OTS over phone when I was out of station.When I reached branch aftr few days new manger wants full settelement.

Mr.Hasim

Your query involved the following issues:

1) Since the account is declared NPA, the liability should be reduced.

2) the Previous Manager accepted OTS but the present Manager denies.

3) Your uncle who stood as guarantor, is facing problem due to your default. 

The Answers: 

1) No.  NPA - the name itself is Non-performing Asset for the Bank.  That means the bank is not earning any interest on its asset and it should not book interest and show it as a profit where there is no actual receipt of interest. This is an internal matter of the Bank and it will not come in the way for recovery.   In fact it will hasten the process of recovery and if the borrower or guarantor is capable of repayment, it will recovery to the last pie.  

2)  One can not understand why the previous manager accepted Rs.7000 against Rs.17000 liability when the borrower is having earning capacity.  Of course, if he has agreed there should be proper channelization of his consent.  You should have applied for reduction,, narrating your incapacity to pay the full amount and the Manager or the competent authority should accept your request and reduce it in writing.  The new manager is right in his approach in the absence of written commitment on the part of the Bank (then represented by his previous manager).

3) Naturally bank will not extend any advance facility to the person who stood as guarantor in a overdue account.  Bank has got the right to recover the money either from borrower alone, or from the guarantor alone or from both looking into the easy way of recovery.  In this case, it is easy for the bank to recover the amount from your uncle  

Mr.Hasim, it is education loan.  You got benefit out of it.  You are employed.  You did not pay for a long time.  According to me, you better pay your total liability get relieved of youself and also your uncle. 

Best wishes 

Jaggarao

it is an small amount,pay it.................

settlement of loan with the bank is the final positive solution for you.In this case you becomes a wilful defaulter and your credit rating in CIBIL get spoiled.therefore you r not eligible for loan from another bank  loan

agreed with the experts.