Education loan npa

Your question does not reveal the following:

1. When the loan was taken ie. date
2. Purpose of loan ie. the course for which taken
3. Duration of the Course
4. When the course completed (date)
5. Repayment Holiday given by the Bank
6. Monthly EMI or Instalment prescribed by bank

Please provide the above details. Without these details, it is not possible to give any legal advice. 

Did you get settlement offer in writing? Was receipt for money paid obtained?

Incomplete information

Loan was taking in end of 2008, & monthly EMI was about 6000. I got an email regarding the amount which i have to pay, & they amount which i paid, it shows in my loan account when i checked it online. Hvnt got any separate receipt for that.

Emmanual,

Please provide full information lest you it is not possible to give any advice.

The present notice is not the first one issued by the bankers, you should  have been more cautious when you received the first notice itself for default in repayment.  You missed the bus then, because you could have settled the issue or got your loan restructured.  However, since you have reportedly repaid around two lakhs only a few months back, this may not come under npa, it means you are not giving correct picture.  Come out with full details for a proper opinion.

Hello,

I took loan amount INR 400000/- for education purpose in end of 2008. Initially i didnt had any job so i wan't able to replay the EMI. In 2013 OCT I paid INR 200000/- & after that I paid 5000/- in july 2014. And now I got this letter stating that loan is in NPA & need to pay 400000/- & close the loan before 30th of SEP.. Currently I am not in a situation that i can make the whole payment in such a less time. 

Right now I can manage to pay INR 1-1.5 lakhs from my friends. Can some one please tell me is tre anything else I can do in this case.

I have only made 3-4 payments which makes it 205000/- INR. 

 Mr. Emmanual,

Please note that when you are approaching Doctor or Lawyer, you should be ready to be frank with both of them.  Any information held back with either of them shall prove to be dangerous afterwards.Even now, you are not forthcoming with the details required  as sought in my earlier response.

Please be informed that when Banks sanction Educational Loan, they stipulate the repayment condition at the time of sanction itself.  Please verify the same.  The repayment holiday,  ie. the period in which you need not pay the loan amount,  is very very long in the case of Edcuational Loans. 

Normally, repayment starts 6/12 months from the date of completion of the course for which the Loan was taken or the date of the Borrower getting a job, whichever is EARLIER.

Unless the facts are available, no opinion can be given. 

Further, there is a Bank which has helped you in your hour of need, given an Educational Loan and waited for the entire period of your study and now seeking repayment.  You should have taken the logical step any normal person would have taken ie. visiting the Branch where your loan account is maintained and meet the Officials concerned and have a discussion regarding your loan and obtain the required details.  There is no point of getting legal opinion at the drop of a hat just because you are receiving notice from Bank. 

My sincere advise to you is to visit the Bank and discuss the matter and settle it amicably instead of running around and trying to get legal opinion at this stage.

Mr. Sivaramprasad 

I am not trying to take off this loan from me, I know that the bank helped me to pursue my higher studied & I understand that its my responsibility to pay them back the amount they gave me. I am not denying it or I am not trying to take responsibility off of me. 

If I would have been trying to do so, Of course I don't  even bother to pay them back. But till now I have paid them as much as I can & I am again ready to pay 1.5 lakhs before 30th of this month. But they are asking for 4 lakhs in a month.

As I said I am paying 1.5 lakhs this months, What I am looking for here is, is there any way which I can get some more time to pay my remaining 2.5 lakhs. 

As I said I really do not know how did it went to NPA, as I made this 2 lakhs payment in end of OCT 13. and some amount in the beginning & middle of 2014.

I will be discussing the same with the branch, but before that I should have a little idea about what to do or what to talk... I have seen several posts on this forum regarding the same, so I was looking for some possible advise on the same, not a legal opinion to fight against the bank. Hope you understood me correctly. 

Thanks.

Mr. Emmanual,

Please note that when Bank is asking you to pay RS. 4.00 lakhs at a time, it means that your monthly EMIs are in arrears and unless you pay the amount mentioned by them, your account shall not be regular.  In the present day income recognition and NPA norms, Banks are on their toes to recover the dues before the installments are overdue and the account has to be classified as NPA.

Till now you have not provided the details I had asked in my initial response.  You are just beating around the bush with out providing the required details to verify whether the Bank is demanding correct amount or not.

I reiterate that you may contact the Bank Officials and sort out the matter before the Bank decides to take legal action..

Try to reach a compromise settlement by remitting maximum dues now and seeking further instalments to settle balance within 3 or 6 months. You may also try to get the matter taken up at Lok-adalath by contacting the local Legal Services Authority, who may pass award fixing due amount and time for repayment within a period of 6 months. 

Hi,

I have taken Education loan from SBI in 2006 December (Loan Amount 2,20,000/-), I completed my education in 2010. I was jobless and I wasn't able to pay the EMIs. I started earning in May 2013, I  did pay 81,937/- till 31st Dec 2013. 

in Dec 2013 I have request BH to restructure my loan, but he refused saying It can't be regularized because it's NPA.

In March 2014, SBI has written-off my loan account and started OTS Scheme without my knowledge, I have been informed about this OTS thing in OCT 2014. Written off amount is 2,02,000/-.

The Bank is asking me to pay the full amount as soon as possible and I am not able to pay since I earn very less.

Am I eligible for Interest subsidy on Education loan announced by Finance MInister P Chodambaram since I have taken loan before 2009. I have also asked BH about interest subsidy but he said we had sent the application for subsidy but It got rejected.

BH is saying that they are going to send me legal notice.

Please Help me out, I want to repay the loan but I am not able to repay.

Can I avail the benefit of Interest subsidy if my account is NPA.

Kindly hepl me how to proceed with the bank, if you need any other information please ask me.

I agree with experts, discuss the matter with Bank officials to find a way out regarding payment of agreed amount as full and final payment. 

Mr. Neo Nirmal,

You are coming into Mr. Emanuel's question and giving details of your case, which will only confuse the forum members.  If you have a case requiring clarification, please post it separately not clubbing  with another member's question.

OK. On perusing the details given by you, it appears that Bank has a case against you as you have not commenced repayment of the loan as agreed.  Not having a job cannot be a valid reason, as when the loan was sanctioned bank must have put a condition that loan repayment should commence within 6/12 months from the date of completion of your studies for which loan was taken or date of your getting job WHICHEVER IS EARLIER.

Bank writing off Educational Loan?? it does not happen. Educational loans are generally sanctioned in joint name with Parent/s.  Therefore, please go the Bank alongwith your Father/Mother or any other close relative and discuss the  with the Branch Manager and try to  sort out the matter as amicably as possible.

At this stage  if you try to take legal help it will only exacerbate the issue.