Reg education loan: urgent
Guest
(Querist) 31 January 2014
This query is : Resolved
Dear Sir/madam
I borrowed education loan in the year 2005 about 1.20 Lakhs. I did'nt pay interest or Principal amount so far due to low income job and currently i am unemployed. Now it declared as NPA and issued noticed with contents, outstanding as 1,95,796.00, interest as 98K and uncharged interest as 76K. My question is whether the interest will rise further?
But it was insured (endorsed to BANK) for the principal amount and i am paying 5000 per year. now it had 70 thousand including bonus.
now what can i do? I need help.
Thanks in advance.
Regards
Rishab
Guest
(Expert) 31 January 2014
Interest will continue to be added till any balance continues to be shown in the principal amount payable.
Guest
(Querist) 31 January 2014
Thank u sir
Advocate. Arunagiri
(Expert) 31 January 2014
It seems that you started earning, repay the loan.
If the students neglect to repay the loan, the bankers will have a bad opinion on the students.
R.V.RAO
(Expert) 31 January 2014
interest continues to accrue till loan is fully repaid.
you immediately approach the bank with your last employer's relieving letter and also prove to bank's satisfaction that you are now really unemployed.
Then request the bank in writing for total waiver of all outstanding interest.
if this is not agreed,write to waive at least 75% of outstanding interest.
after achieving some success in the matter of interest waiver,also write to request moratorium (stop charge interest ) till you are gainfully employed.
to convince the bank that your requests are genuine,take an elderly relative with you ,who can offer some assurance to the bank.
Guest
(Querist) 31 January 2014
Thanks a lot mr.rao, mr.arunagiri and mr.sudir.
Raj Kumar Makkad
(Expert) 31 January 2014
A gentleman behaviour is to re-pay what ever has been undertaken within time to avoid further complications.
Guest
(Querist) 31 January 2014
Thank u mr.raj kumar. But the problem is unemployment. I am not with any bad intention here. Thats y i insured and still paying for principal amount. Last time bank officials came and asked me to continue the LIC. I think they understood my problem. but later i got that notice so i came here for help. anyway thank u sir.
Guest
(Expert) 31 January 2014
You are welcome.
Guest
(Expert) 31 January 2014
You could seek the help of Lok Adalat
Rajendra K Goyal
(Expert) 01 February 2014
Bank has helped you in your studies and when you started earning you failed to meet your commitment to Bank fully.
The interest would be rising till whole amount is paid off.
You may approach the Bank with definite proposal of settlement, there are possibilities that Bank may waive un applied interest.
malipeddi jaggarao
(Expert) 01 February 2014
The author is giving two different versions.
version one:
I borrowed education loan in the year 2005 about 1.20 Lakhs. I did'nt pay interest or Principal amount so far due to low income job and currently i am unemployed.
Version two:
I am not with any bad intention here. Thats y i insured and still paying for principal amount. Last time bank officials came and asked me to continue the LIC.
The author should understand though his job small, he should have started repaying the amount, which he did not do.
Paying the premium of LIC is a different issue. It be handy to the Banks if the borrower dies before closure of loan. The Insurance Company will pay directly to the Bank. His death should not be a burden to his family. During the life time of the borrower, this is not at all useful for repayment as banks obtain whole life policies in education loan.
Hence, forget about your insurance (but continue to pay the premium); it will not help you in repayment and make part payment immediately, so the proof to the bank that you are presently unemployed and ask them to reschedule the instalments.
Guest
(Querist) 01 February 2014
thank you. And my problem solved. The thing is None of the above happened.. Anyway thank you for support. I appreciate that.. Take care and goodnight.
