Education loan from IOB

Querist : Anonymous (Querist) 05 January 2018 This query is : Open
I was sanctioned 2,16,000 as loan for my B.E. degree in 2012. However my mother and father passed away in 2013. When i went to bank to close the loan of 54000 which was received for first year as my parents passed away the manger said he cannot close unit full loan amt was taken or till completion of the 4 year. Then an education loan officer said that iob has debited a lum sum for life insurance coverage of my parents and me immediately after my loan was sanctioned without our knowledge. So i spoke with manager and gave all the necessary documents to claim the life coverage policy during 2014 and till final year i took 1,56,000 now it has come to around 225000 with interest but still the manager is saying the insurance is processing the payment and when asked how much will they pay and how much i need to pay to close the loan. he is saying that insurance amount would only cover the interest and he refuses how much the insurance amt is for and he refuses to give any correct info.Now i am receiving message that the loan is going to be transferred to NPA. Bank person contacted me and when i informed about the loan and asked about the insurance he said as the iob only taken the insurance policy we will process the payment towards interest from insurance payment date and first i need to pay the 225000 as montly due and other yearly interest will be processed from insurance amt. Need assistance on what i can do

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