Educational loan account turned to npa
Meghal
(Querist) 18 January 2012
This query is : Resolved
my family member has a educational loan running and we have been repaying the same every month but due to some reasons last year we had missed paying 3 EMI'spost that we are paying EMI every month but could not pay back those 3 EMI's.Now we received a call from the bank saying the account is under NPA ans there is sub std interest charged.We have somehow arranged the amount of 3 EMI's but the bank is not ready to waive off the interest and is saying they will keep charging the same till we pay the interst component also.Kindly advice on the waiver of interest as it is really difficult to pay.We are paying almost 50% of our household income towards EMI.
Shonee Kapoor
(Expert) 18 January 2012
It is a matter of negotiations.
If the EMI are paid, then interest on interest would be charged.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
Deepak Nair
(Expert) 18 January 2012
Only the bank can help you in this. No other legal remedy is available to you to waive interest unless the interest charged is over and above permissible.
Waiver of interest is strictly the at discretion of the bank.
Meghal
(Querist) 18 January 2012
we have been paying the emi and also tried to pay off the o/s EMI but were unable to.Now we have managed the funds but bank says pay off the interest also or else they will keep charging the same.
ajay sethi
(Expert) 18 January 2012
bank wont waive off interest . if amount outstanding is high and bank has to go to court to recover its dues then they compromise if they dont have nay security for loan
Advocate. Arunagiri
(Expert) 18 January 2012
Educational loan is to be repaid after completion of the course.
What is the status of the student? whether he had completed the course, if yes, whether he is working?
Deepak Nair
(Expert) 18 January 2012
Ther is no legal provision to escape from this liability.
All depends on your ability to convince the bank.
Raj Kumar Makkad
(Expert) 18 January 2012
As the payment was made immediately on lapse of 3 installments so bank can recover interest only up to that period and no up to date. You may claim that subsequent payment may be deemed deposited for outstanding installments and thus interest calculation be corrected accordingly and even there is error in declaring the account as NPA in the given facts.
