Educational loan repayment
Rohit Munjal
(Querist) 27 October 2013
This query is : Resolved
Sir,
I was seeking some guidance here. PNB has taken me to a Lok Adalat for defaulting on my loan. I have paid most of the dues but stopped paying when i was short of around 14-15k because their statement was not matching with mine. Instead of clarifying my doubts they kept sending me notices to pay and never used to answer my phone also. Sent them multiple reminders. The only mistake i did was that i didnt go to their office to get this settled thinking that if i havent done anything wrong here, why should i take the pain to go and clarify.
Now, they have sent me a notice through the Lok Adalat( probably my loan would have become an NPA). I wanted to know if
- is there any way i can settle this w/o going to the Lok Adalat? I just dont want any more hassles and want to close this out. So can this be done remotly.
- If i still wish to fight this because i know that i a right here, what is the way forward.
Any help from this forum will really be appreciated.
Advocate M.Bhadra
(Expert) 27 October 2013
A Lok Adalat, uses a procedure called a settlement. In a conciliation process, a settlement is reached through mutual agreement i.e. both the parties to the dispute agree to a decision. Conciliation is a much simpler process when compared to litigation because unlike litigation the parties can directly interact with the process of laws. It is not compulsory to have a lawyer. You can personally appear before the Lok Adalat – and a lot of people do that. On the other hand you may not go to the Lok Adalat in your absence there would not adverse order be passed,only matter will be subsisting.
Remember Banks are ready for negotiation. So if you find yourself unable to meet loan payments, consider a few options before ignoring EMIs. Bankers evaluate merits of the case, the credit profile of the borrower and so on, and negotiate for mutual benefits. For instance, you may request the banker to increase your loan repayment term and settle for a lower EMI. This may help reduce your burden significantly.
Devajyoti Barman
(Expert) 27 October 2013
You can settle without f=going to Lok Adalat . However going to Lok ADALT is more advisable as there you an negotiate in front of the members and you can always retract if terms do not suit you.
Rajendra K Goyal
(Expert) 27 October 2013
You should attend Lok Adalat, procedure is fast and cheap. Request Adalat to settle if you want to pay. Lok Adalat may wave penal interest and any other expanses provided both parties agree to it.
Regular legal process would take years in decision and interest expanses may increase.
ajay sethi
(Expert) 27 October 2013
attend lok adalat . it is in your interest to do so . resolve issue amicably once for all since you have repaid most of the dues
R.K Nanda
(Expert) 27 October 2013
agree with experts.
R.V.RAO
(Expert) 18 March 2014
you can state your problems clearly before lok adalat members.for edu.loan borrowers there is sympathy as they are students or just completed studies.
as experts said above, you can always retract your tand later.it is advisable to go before lok adalat.
"honor and shame from no condition rise,
act well your part.there lies all the honor".
