Gunasekaran 27 February 2017

Write off - educational loan - liablity

Dear All,

I availed an educational loan from SBI in Jan 2009, I completed my course in 2012. I paid all the interests till Feb-2013. Due to unemployment & difficult circumstances of my family, I was unable to repay my loan on time.

SBI transfered this loan to Reliance Asset Reconstruction company (RARC) during March 2016 without any prior intimation to me. By that time, the outstanding loan amount was Rs.267474.

From the loan statement provided by SBI, RARC transferred a sum of Rs.116435 in two installments (Rs.17465.25 + Rs. 98969.75) as a repayment.

And SBI written off Rs. 151039 from my account and now the outstanding balance is zero in SBI records.

Please clarify few of my queries listed below :

1. Am I legally liable to pay RARC now?
2. If yes. What is the amount that I'm actually liable to pay to RARC.

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7 Replies

(Guest)

Whatever you did not pay, that you have to pay. SBI transferred loan to Reliance. They will do vasooli now. Please be careful, private companies methods of vasooli are very amazing.

G.L.N. Prasad (Retired employee.) 28 February 2017

No one can beleive that without making efforts SBI sold away the loan to outside agency. You are aware of the default, failed to negotiate with the bank, and may be under the impression that why VM can escape, why not I, what Government can do.

Before availing the loan, one has to foresee the future position and should not be happy with sanction must look for alternate resources as every thing may not go as expected.

It is better to expect a call for OSA, and then strike a compromise instead of getting the matter more complicated, as your rating has gone down making it diffficult to avail further facilities with any financial institution.

The sanctioning authorities should also take the blame, as they have to make enough inquiries about such recovery, as borrowers at that age may not anticipate the spoilling of entire reputation in case of default and the repurcussions further in their growth.

rajeev sharma (Advocate Ex senior manager law ) 01 March 2017

Under the provisions of SRFAESI Act the ARC has the same rights which a bank has. Since your loan has been assigned to ARC hence now you have to approch ARC for any settlement.You are liable to pay principal amount+interst+expenses

Gunasekaran 02 March 2017

Dear GLN Prasad,

I request you to correct your perceptions.

What is OSA.?

Gunasekaran 02 March 2017

Dear Rajeev Sharma,

Now I'm confused about the Principle.

SBI Transferred Rs.116435 to ARC & written off Rs.151039.

Now what is the principle I'm liable to pay to Reliance ARC?

Rs. 116345 or Rs. 267474 ?

rajeev sharma (Advocate Ex senior manager law ) 02 March 2017

Write off by bank is merely a correction of balance sheet of bank. It has nothing to do with your liability to pay the loan.so you remain liable to pay Rs. 267474 . Moreover the amount for which ARC purchased the loan account from bak has othig to do with your liaility however its cost may be a paremeter for ARC to enter into OTS

Gunasekaran 04 March 2017

Please help me to get clarified about the following queries:

How to request RARC for an OTS?

How RARC may confirm the OTS agreement?

Please guide me to create a proposal. Please provide me any links/documents to refer.