Write-off or auc accounts interest calculation

madhu (Querist) 16 September 2017 This query is : Resolved
Dear sir,
my uncle taken cash credit (cc) and education loan by mortgaged his house from SBI. up to 2013 he paid the loan regularly. In 2015 the bank declared the loan accounts as AUCA. Now SBI released e-circular "SCHEME FOR ONE TIME SETTLEMENT OF NPA AND AUCA 2017-18 (RINN SAMADHAN)". But bank is telling you are not eligible because of security of your house and is costing more than your dues. After discussed with branch manager my uncle transferred 6.85 lakhs to his saving A/C. In the a/c statement the bank debited it as : TR to AUCA closure" and not showing any A/C number to which it has been transferred.. The manger has gave the calculation on white paper showing: outstanding as on today is 2,45,000/- and interest 4,40,000/-. Still we are pending Education loan. My questions are:
1. Is bank can collect AUCA loan. If it collects then how much interest they calculate and from which date.
2. Can i demand a detailed statement as printed copy including interest rates for the AUC account.
3. "OTS SCHEME" is applicable for these loans, if not why.

-THANK YOU

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Guest (Expert) 16 September 2017
Normally for Education Loans there should not be any security to be demanded.The Banks also sells and transfers the Loan to companies like Reliance accepting only 50% of the Loan Principle out standing and the companies who had purchased the loan would demand 100% of the total outstanding with heavy interest and because of which many students had committed suicide also.Better discuss with a local good senior advocate and try to remit thro Court and seek the possibility of One Time Settlement avoiding the interest

R.K Nanda (Expert) 16 September 2017
contact concerned bank officials for settlement.

you can demand complete statement of ur account from bank.

Rajendra K Goyal (Expert) 16 September 2017
You asked:
1. Is bank can collect AUCA loan. If it collects then how much interest they calculate and from which date.
Ans:
Yes.
It is internal accounting system of the Bank to park the defaulted loan accounts. AUCA does not reduce the liability of borrower.

Rajendra K Goyal (Expert) 16 September 2017
You asked:

2. Can i demand a detailed statement as printed copy including interest rates for the AUC account.

Ans:
You must ask and countercheck. In case of need may use RTI.

Rajendra K Goyal (Expert) 16 September 2017
You asked:
3. "OTS SCHEME" is applicable for these loans, if not why.
Ans:
OTS is not the right of all borrowers. Must go through the document whether your loan is covered or not.

Rajendra K Goyal (Expert) 16 September 2017
Bankers have right of general lien hence, Bank can use your security in other account to liquidate education loan.

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