Extension in loan emi after moratorium period
Querist :
Anonymous
(Querist) 29 December 2011
This query is : Resolved
Sir/Madam,
I had took a education loan to pursue MBA in 2008. My course duration was 2008-2010.
My EMIs were to be started from July 2011.
But unfortunately I could not get a Job after the completion of the course.
So, I joined PHD in Management in one central university. According to the rules of the university I can join job only after the completion of minimum residential period which is 2 years and is going to end in August 2012. So, I asked the bank to extend the EMI to September 2012.
But bank rejected the request.
So, I want to know whether I can get the extension or not.
According to Indian Banks Association if the course is not completed in stipulated period the extension can be granted up to a maximum of 2 years.
So, I request you to suggest whether it is possible to extend the EMI starting date on the further education basis.
And of course if I am ready to pay the loan from September 2012 then why the bank is not allowing me for the same.
Waiting for your kind and early response.
Devajyoti Barman
(Expert) 29 December 2011
The loan was initially given till the completion of MBA, you did not ask for the loan till PHD.
So the bank is right in asking for EMI.
Now you better negotiate with the bank as it is now in its discretion whether to give you moratorium or not.
Shonee Kapoor
(Expert) 29 December 2011
You can re-negotiate with the bank. In practise the bank would be willing to negotiate rather than writing it off.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
Advocate. Arunagiri
(Expert) 29 December 2011
Many of the banks are extending the mortium period, just because of the recession period, in many industries.
so you can request the bank, with supported facts, they will consider.
Deepak Nair
(Expert) 29 December 2011
Send a letter to the bank stating your inability to pay the instalments before September 2012. The bank will approach you for negotiation.
What the bank needs is their money. If you can convice them that you will pay all the instalment without any lapse, the bank may agree. But even if the bank agrees, you will have to pay the interest of the unpaid period.
prabhakar singh
(Expert) 30 December 2011
A creditor is the boss of debtor and he can relax norms but as banking company their business is also regulated and it becomes hard for them also to adjust too much as and when desired by creditors.It is wrong to plead with bank that the course for which you took the loan is not completed and on this score they shall not come to any agreement as it would be fatal for carrier of the officer so agreeing and later any defaults takes on your part.Hence you are advised to negotiate to re tune the loan after some payment,may be interest accrued so far.
Nadeem Qureshi
(Expert) 30 December 2011
Dear Querist
negotiation is the only way.
Querist :
Anonymous
(Querist) 31 December 2011
Thank You all very much for the advice.
