Educational loan
Ariyaan
(Querist) 08 May 2016
This query is : Resolved
Dear All,
I borrowed an educational loan to complete MBA studies. But as I have not got any job till date so I am not able to repay the loan amount on regular basis. My father is trying to repay the loan amount as much as he can. But he also finds it difficult to repay the interest on loan on regular basis. We applied the branch manager to reduce interest percentage or make it easier so that I can able to repay it but the branch managers are not talking about any such possibilities.
Last week I received a bank loan statement where I found that the bank already transferred around Rs.17000 from a savings account to the loan account. These saving account is a joint account where 1st holder is my mother and 2nd holder is my father!
While I asked for explanation they told me that as I couldn't able to make any payment for 3 months and my father was the loan guarantor so they made such transaction without any intimation. The manager also threatened me that he will suite on me and my father!
1.Did they make right thing?
2.Is it possible that without any intimation they can transfer money from any account which is related to my family members?
3.My parents are feeling insecure and asking me if the bank can transfer money from other bank accounts also?
Do help me. What immediate measures should I take at present?
Sudhir Kumar, Advocate
(Expert) 08 May 2016
2.Is it possible that without any intimation they can transfer money from any account which is related to my family members?
YOUR FATHER IS GUARANTOR AND NOT MERE A FAMILY MEMBER
READ LOAN AGREEMENT
Sudhir Kumar, Advocate
(Expert) 08 May 2016
3.My parents are feeling insecure and asking me if the bank can transfer money from other bank accounts also?
THE REFUND THE LOAN
If the degree is not worth securing a job to you [you know from where you passed in which grade]then there is no justification for you to without earning.
You have to refund the loan.
Do any job but save your parents from this loan
Ariyaan
(Querist) 09 May 2016
We have not received any loan agreement.
I never ever have told that I will not refund the loan. So far I have paid Rs. 175000 but in case if I fail to pay 3 consecutive months that means they can transfer money from any account of my parents without intimation?
I want to clear this point only. I don't want to know what is the justification of a degree. Please share your valuable thoughts.
Ariyaan
(Querist) 09 May 2016
We have not received any loan agreement.
I never ever have told that I will not refund the loan. So far I have paid Rs. 175000 but in case if I fail to pay 3 consecutive months that means they can transfer money from any account of my parents without intimation?
I want to clear this point only. I don't want to know what is the justification of a degree. Please share your valuable thoughts.
P. Venu
(Expert) 09 May 2016
What is the amount of loan? If it is less than 4 lakh, if so, your father is not the guarantor.
Ariyaan
(Querist) 09 May 2016
My loan amount was 2,91,750.
Ariyaan
(Querist) 09 May 2016
The Ministry of Human Resource Development (MoHRD) has set a deadline for banks to submit all pending interest subsidy claims pertaining to the period FY2010 and FY2011 to the nodal bank (Canara Bank) before November-end 2012.
For FY12, the claims have to be submitted between December 1 and end-December 2012.
The MoHRD had launched a scheme to provide full interest subsidy during the period of moratorium on educational loans for students belonging to economically weaker sections (annual parental family income from all sources of less than Rs. 4.5 lakh) from scheduled banks under the Educational Loan Scheme of the IBA.
Ariyaan
(Querist) 09 May 2016
As per terms & condition HRD ministry will pay the interest to the bank till 6 months after getting a job or 1 year after completion of the course: whichever is earlier.
Completion date of the course was 27. 11 . 2012. On 30.11.2013 we found that 6 months interest had been attached. When we asked why is it so they told us bank will calculate the interest amount but if HRD ministry will not pay it then your father has to pay it. We requested to clear that extra amount from the loan statement because as per the scheme from 26.11.2013 I am liable to pay the loan money along with interest. So on 26.11.2013 my loan statement should show Rs.2,91,750. But it was showing 3,44,***.
I refused to pay.
On December 2013 bank manager call me and requested to repay the loan money and assured me that they will take care of that extra money.
Till date my father and I have paid around 175000. But still that extra money is showing in the statement.
from 2013 to 2016 is enough time for settlement of such issue.
Ariyaan
(Querist) 09 May 2016
Finally we refused to pay until we are getting fresh loan statement. So I stopped paying loan amount for last 3 months. And last week I found that the bank already transferred around Rs.17000 from a savings account to the loan account. These saving account is a joint account where 1st holder is my mother and 2nd holder is my father!
What should I do now?
Please help me out. trust me I don't have any wrong intention that I will not repay the loan.
It is an obvious thing that, if I borrow Rs. 100 from you in a condition that you will charge interest from 8th day. So, on 8th day my loan account should show Rs. 100. If it will show 110 why I will pay that extra money?
Kumar Doab
(Expert) 09 May 2016
The bank is under obligation to supply the authenticated copies of each and every document e.g; Loan brochure, loan application, loan approval, loan agreement, loan statement etc...........
Write to Chairman of the bank if BM/Circle head has not been listening.
Ariyaan
(Querist) 09 May 2016
Thank you for the suggestion
H.M.Patnaik
(Expert) 09 May 2016
Do as advised by Expert Mr. Doab . If still, you do not get relief , you can apply to Banking Ombudsman who sits in the Capital city office of Reserve Bank of India of your state for redressal of your genuine grievance.
Rajendra K Goyal
(Expert) 09 May 2016
You said: Did they make right thing?
Reply: ___ They have acted as per terms of agreement / set law.
You said: Is it possible that without any intimation they can transfer money from any account which is related to my family members?
Reply: ___ They should have intimated the account holder after debiting / before debiting and marking lien in the account for the amount.
You said: My parents are feeling insecure and asking me if the bank can transfer money from other bank accounts also?
Reply: ___ It was the account of guarantor and was not another account.
You said: We have not received any loan agreement.
Reply: ___ Have you asked copy from the Bank in writing? Why you did not obtained while signing the loan documents? Use RTI if it is Public Sector Bank.
You said: I never ever have told that I will not refund the loan.
Reply: Who and why one should believe your words. You failed to honor your written promise (as per loan agreement).
You said: Please help me out. trust me I don't have any wrong intention that I will not repay the loan.
Reply: Be fair, arrange the money and get rid of the loan which you have taken and completed the purpose for which it was taken.
In most of the Government schemes subsidy is received from the Government if the account is regular. Have you confirmed from scheme voucher whether condition existed in your loan case.
Ariyaan
(Querist) 09 May 2016
Mr. R K Goyal
Reply: ___ It was the account of guarantor and was not another account.
I: It is not the account of guarantor. It is a joint account; where 1st holder is my mother. She is not a guarantor. Father also has another joint account with my grandmother. that means bank can transfer from that account also as my father is 2nd holder of that account? That means if you and I will do a partnership business and open a joint account where you deposit your money, bank can transfer your money without intimating you!
Reply: Who and why one should believe your words. You failed to honor your written promise (as per loan agreement).
I: I failed because they didn't clear the statement as it should be! if I do have that intention then probably I wont pay 175000 also. :D
Reply: Be fair, arrange the money and get rid of the loan which you have taken and completed the purpose for which it was taken.
In most of the Government schemes subsidy is received from the Government if the account is regular. Have you confirmed from scheme voucher whether condition existed in your loan case.
I: If the condition didn't exist in my loan case then how did I get the subsidy during the course and 6 months after completion the course? I borrowed a loan on the basis of that condition!!!
Sudhir Kumar, Advocate
(Expert) 09 May 2016
There is absolutely no gain by arguing with Mr Goyal.
He has spent his private time, electricity and net connection and given you an advise FREE OF COST.
It is for you to value or not to value the advise given by experts.
Kumar Doab
(Expert) 09 May 2016
Expert Mr. Goyal is expert in banking matters.
You may rather send full details of the matter and find the way out.
Ariyaan
(Querist) 10 May 2016
As we are getting free of cost advice from this site so we actually want to thank to all experts.
I didn't want to waste anyone's private time, electricity and net connection. That is why in the beginning I wrote the fact in short and asked simple question:
a)Is it possible that without any intimation they can transfer money from any account which is related to my family members?
As you are getting me wrong so I wrote the fact in details.
I can't understand where all other points are coming from! like:
* justification of a degree
* Be fair, arrange the money etc.
Anyways, I think I should stop this discussion (not argument).
Thank you everybody for suggesting right ways.
I am going to do the followings:
a) Ask copy from the Bank in writing (Thank you Mr. Goyal)
b) Write a letter to Chairman of the bank
c) If still, I will not get relief , I will apply to Banking Ombudsman.
Kumar Doab
(Expert) 10 May 2016
Expert Mr. Goyal is expert in banking matters.
You may rather send full details of the matter and find the way out.
P. Venu
(Expert) 10 May 2016
I am afraid in this lengthy discussion, we have not discussed the basic legal elements governing the sanction of educational loan. The Scheme had been approved by the RBI circular dated April 28, 2001 and this forms the basic guidelines for deciding any issues thereto.
Accordingly, no security is required for loans upto 4 lakh and hence the Bank is wrong in its action in effecting the recovery from the father, treating him as a guarantor.
Kumar Doab
(Expert) 10 May 2016
Despite the extent guidelines Bank's/Banker's have been pressing to get thumb impressions/signatures of sureties/guarantors..............
The matter has been explained at length and in details.
The author has also realized the manner he can act.
Rajendra K Goyal
(Expert) 10 May 2016
You said:
If the condition didn't exist in my loan case then how did I get the subsidy during the course and 6 months after completion the course? I borrowed a loan on the basis of that condition!!!
Reply: Sorry, I withdraw to reply.
Kumar Doab
(Expert) 10 May 2016
I too have nothing else to post.
The author may consult an able counsel of his choice.
Dr J C Vashista
(Expert) 11 May 2016
Well advised by experts, nothing more to add.
P. Venu
(Expert) 11 May 2016
In my above posting, 'we have discussed' may be read as 'we have not discussed'; the lapse is regretted.
I have since corrected the posting.
