Education loan settlement advise
Rohit
(Querist) 19 May 2016
This query is : Resolved
Hi Sir,
I have seen your advice on Internet regarding Education Loan, I just want to brief you about my Education Loan, I had borrowed 3.8 Lac education loan from Bank Of India in 2012-14 for MBA. Sir till now I have already Paid 1.25 Lakh and now total amount outstanding amount is 5.67 Lakh approx. and after paying 1.25 Lakh now I have to pay more 4.47 Lakh approx. I have family issue my father business is shut down and he is in depression since last 3 years, and I am staying in Delhi working in IT company. My salary is not much more that I can continuously able to Pay the EMI of 10K, This is my family support that they had paid 1.25 lakh huge amount. Now the some circumstances we're not able to pay the EMI regularly,So I had called a bank for the settlement but they denied they said we have to follow the Legal Procedure against you..I am ready to Pay the Principal Amount..I have discussed with mu cousins to help me on this and they are ready to Pay 2.55 Lakh rest Principal amount after submitting 1.25 lakh. But Bank Manager is denied for the settlement
I need to asked how can I go for the settlement and if they take action in Court how much this will effect in My Career. Please advise
Thanks & Regards
Rohit Gupta
r.sathyanarayanan
(Expert) 19 May 2016
I understand your problem, write a polite letter to bank explaining the facts and without committing that you will pay 2.25lakhs,let them decide.if they are going for a case means that you can file a petition for transferring the case to lokadalat and there you can try to negotiate.
It will affect your cibil rating ,what to do.try to save to pay the loan.
P. Venu
(Expert) 20 May 2016
Legal procedure means filing a civil suit. Though you should try to avoid a legal proceeding, there is no need to be scared of it. It is invariably the practice nowadays that the Court will try to work out a settlement, and you can try to make use of the opportunity.
Even if the suit proceeds to trial, no adverse decree is likely to follow as the loan amount is less than 4 lakhs. The basic norm in such case is that there was no requirement of guarantor and interest charged should be prime lending rates. It is invariably the case that the Banks pays scant respect to these basics. The court trial would give you an opportunity to correct these basics.
Advocate. Arunagiri
(Expert) 20 May 2016
Send a letter requesting for a OTS amount, the bank will consider it instead of spending for the court proceedings.
Kumar Doab
(Expert) 20 May 2016
You can benefit from the advise of experts.
Rajendra K Goyal
(Expert) 20 May 2016
If you send any letter, you would be acknowledging the total debt. Your father may write letter for settlement.
Bank manager may not be having powers of settlement, he is dependent on seniors.
Rohit
(Querist) 20 May 2016
Thank you so much for your valuable suggestion !! I am really glad to everyone that you had respond on my query. !! Thanks
Kumar Doab
(Expert) 20 May 2016
It is appreciable that some querist/authors come back to pay thanks to the experts.
T. Kalaiselvan, Advocate
(Expert) 23 May 2016
The author may avail the benefits of the advises given in this forum by different experts which would bring solace to the persisting mental stress.
