raja (owner) 14 January 2015

Nationalised bank : higher loan amount than eligibilty

Dear Sir, I have availed a lease rental loan from a nationalized bank on 2011. Bank have sanctioned a term loan , amount of Rs 40.00 Lakhs. On appraisal of my loan application Bank manager have done a wrong calculation since my eligibility is only 25 lakhs ( I came to know my eligibility amount on Jan 2014). I made representation to our manager stating, “since my current EMI is much higher than my rent receivables, I request you to reschedule my Emi equal or lesser than rent receivables”. Till date I didn’t receive any reply from manager. When I ever I request the manager to resolve the Emi problem threatens that He has right to recall the loan at any point of time. I admit that I found my in predicament situation when he recalls the loan.

Note :

a) manager admits that he have sanctioned higher amount of loan than my eligibility. ( verbally )

b) As per sanction letter repayment has been scheduled as PRDA , without my concern manager converted my repayment schedule to EMI.

My query is;

1) Does manger has right to recall the loan.

2) Can I forward my RTI Application to CPIO. (IF SO KINDLY HELP ME )

3) Does bank has right to reschedule my EMI as per my request letter.

t Thanks in Advance

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5 Replies

G.L.N. Prasad (Retired employee.) 15 January 2015

You have availed the loan, and while communicating sanctions Bank gives a sanction communication and gets your acknowledgement. You have availed entire amount (Forget, whose mistake is that as there is nothing wrong in Manager sanctioning only such amount.

First you should repay the excess amount availed by you, and then seek proper EMI. If manager is not co-operating, you can take up the matter first with higher authorities and then escalate it to Banking Ombudsman.

To sum up remit surplus amount availed by you and then for rescheduling or refixing of EMI equal to lease rent.

(Manager may use harsh words that he will recall the loan etc., but rarely a manger resorts to such step, as he is interested in showing his assets only as performing assets.)

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SAINATH DEVALLA (LEGAL CONSULTANT) 15 January 2015

Dear Sir,

I amnot sure about the correctness of ur query.No Financial Institution will sanction a loan without proper documentation.Nothing oral can be accepted by law.The documentation is done only to avoid future legal complications.If you have been sanctioned excess loan kindly repay to that extent,so that your liability will be reduced,tothe value of the rent payable by the bank

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Anand Bali Adv. (Advocate Solicitor & Consultant) 15 January 2015

I am totally agree to the above advise of Mr Sainath nothing nothing more of importance can be added to it.

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T. Kalaiselvan, Advocate (Advocate) 18 January 2015

Agreed with the opinions of the above experts. If at all you find that the excess loan sanctioned is in no way going to assist you and is going to remain as dead investment, you may decide about returning the same to the bankers and communicate in writing for rescheduling the loan and its repayment as per the terms. The bank manager cannot unilaterally decide about recalling the loan if it is performing well,in the event of his arbitrary decision, you may escalate the issue with the higher authorities of the bank narrating the entire incidences supported by the authentic documents and seek their relief. Suppose your representations with the higher authorities also fail to invoke the desired response, you may either approach banking ombudsman or appropriate consumer fora for remedy and reliefs.

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(Guest)

Mr. Raja,

How do you link with excess payment than eligibility and rescheduling your EMI with lesser amount than the due according to amount of loan? In other words, you have requested indirectly to extend the term of your loan beyond the prescribed or agreed term.

However, the present descripttion of your case may not suffice to arrive at some conclusive opinion for your guidance to help you. Copy of the agreement entered in to by you with the bank is necessary to be gone through to appeopriately analyse your case and to suggest you suitable solution.

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