Education loan
Mayank
(Querist) 09 December 2015
This query is : Resolved
I had taken a education loan in 2009 for my b.tech but didn't get any job. Now before some days I got a notice for appearance in lok adalat. I visited the lok adalat and the honorable judge gave an reward of paying 538000 Rs/- but I am not in condition to pay such a big amount. And the notice was on my fathers name but I signed the reward. what should I do if I am not able to pay that amount. And they didn't even give me the copy of that order too. need help urgently
P. Venu
(Expert) 10 December 2015
What was the amount of the loan sanctioned?
Rajendra K Goyal
(Expert) 10 December 2015
You have agreed to pay the decided amount in the lok adalat. If you do not pay Bank can proceed for execution against you and your father as it seems your father was either guarantor or co- borrower.
Bank has given you loan for your studies and not for your employment.
Non payment would spoil your credit history, Assets oy your father may be attached / sold, in some cases civil imprisonment can be given.
Sudhir Kumar, Advocate
(Expert) 10 December 2015
You are hiding the facts.
please come with complete facts.
You have not stated how old is the amount. Before filing case the bank people may have contacted you and sent notices as well.
If you have done B Tech it is surprising as to whey you could not get a job. If your degree was really worth the job of engineer you could have got. I large number of B tech boys are joining govt offices as clerks and peons (now dignified designation of MTS) in Govt sector and get 15 to 20 thousand plus salary.
When there is loan on you father how can you sit idle even for a single day simply because you are B Tech.
Mr RK Goyal has already told you the misery your father case face.
Mayank
(Querist) 11 December 2015
Mr P venu the principle amount was 3,80,000. I had taken the loan in 2009 and the b.tech was completed in 2013
Mayank
(Querist) 11 December 2015
Thank you Mr. Goyal for the wise advise.but one more quick question if I pay the hole amount decided in reward and if still these bank people mess with my cibil score. I am going to pay three lakh as decided by judge in front of him. So can I ask him to help me taking a proof by bank for not touching my cibil score.
Mayank
(Querist) 11 December 2015
Mr. Sudhir kumar, as I think all questions must be answered. And please don't take my words otherwise but here are the answers of all your questions one by one...
1. why would I hide the facts,I am not a criminal. But yes there is a thing which is called "conversation" and it starts with a question and goes like that. so the facts I thought would be necessary, telling someone for seeking a help, I wrote already.
2.If I had written all the facts and things happened with me related to this, could have taken 3 pages and 2 hour.I thought some one would respond to my query as you all did and will ask me related questions.
3.That is not a amount first.. there are four installments of education loan, which was taken from 2009 to 2013 yearly basis. before filing the case bank people sent me a legal notice and after that I visited the bank and the manager asked me to write a application for settlement. I did the same and than I got this notice.
4.This question surprised me.. no offence please but I never expected such a reply from a much matured and experienced person like you. so here is the answer for this can you please give me a scale for scaling a persons degree or which can tell us that if that person is worth of it or not. and talking about degree in my batch when I was in college only 2 students got a job offer because these were from it branch and no other company came in for campus drive. I don't know why I am telling you this but as I said all questions must be answered. Again don't think I am aggressive but I am putting my view.
so somany people had gone for higher studies and some of them were preparing for govt jobs. but I didn't have money and had loads of pressure. My best friend prepared for cdac for 6 months and joined cdac and after that he got a job opportunity in "ARM" for 6 lakhs.
so that means his degree wasn't really worth the job of engineer and then it became worth of it.
now one good news my degree also became worth of it and I got a job in a good company but the thing is how would I pay such a big amount in such a shorter period. And other concern was that I was from a very poor financial background and applied for interest subsidy but bank didn't take a step for it and they knew about my family. I searched everywhere and tried everything and provided every document required even in the semester time.
other thing is I asked the honorable judge for giving me some waiver on interest so I could pay the amount in singleshot. I told him every situation but they said they will sue the guarantor who helped me when I needed. so I signed the doc in pressure. so the only thing I asked for is that could I ask one more time or take some more time to pay the amount because I was unable to find help. but it makes no sence now as i am paying every penny.
5.Did you see me sitting idol. should have I started digging everywhere bcoz I couldn't find the job. for your consideration I should tell you that it was 1 year and 8 months of time that had been passed without a job. but I didn't give up. if I could have thought like you, I was doing a 15000 job in callcentre or 15-20 thousand salary in which I could have never been in a condition of paying the hole amount.
one of my friend is paying the installments for almost three years and still he has to pay 2 lakh around. and the installment is for 10000. btw don't take it a correct statistics but it was like this something. but I didn't have money that time to pay the installments.
6. my father knows and me that I took the loan myself. my father was never ready for b.tech bcoz of financial conditions. I myself did everything and called up my father one day on which he had to sign as the co-borrower.
and in the last I really respect you an your advice as you tried to help me. these were only the answers to your questions don't take these as word fight. But one question in last
"If a person prepare for IAS and couldn't become IAS so does it mean he wasn't worth of it"
apologies for misspellings and english
K.S.Srinivas
(Expert) 13 December 2015
I advise you to pay the total amount as per the Award of the Lok Adalat in the interest of your future.
P. Venu
(Expert) 14 December 2015
Yes, you are obliged, morally, to repay the loan taken and as well to abide by the Award of the Lok Adalat.
However, the legal elements involved are some what different.
Firstly, the RBI Notification RPCD.PLNFS.BC.NO.83/06.12.05/2000-01 dated 28th April 2001 mandate that educational loans for less than Rupees Four Lakhs is collateral free. It is only in respect of loans above this amount that "collateral security of suitable value or co-obligation of parents/guardians/third party alongwith the assignment of future income of the student for payment of instalments may be obtained." As such, it is unreasonable if the parent is fastened with the liability to pay back the loan. This aspect is apparent on the very principle of the scheme that the loan is sanctioned on the basis of the future earning potential of the applicant student.
As regards to interest, it is chargeable @PLR for loans up to Rupees Four Lakhs.
However, the Award of the Lok Adalt makes it too late for you to agitate on the above aspects.
However, the Award is enforceable only against you, and not the parents or any third party. Moreover, if salary is your only source of income and if you own no property, the attachment could be carried out only in terms of Section 60 of the CPC.
However, the Bank has the option to seek your detention (an unlikely event) if the Award is nothonoured.
An added aspect is that the Award as well is non-satisfaction would adversely affect your credit worthiness with the CIBIL rating.
Has the Bank moved the Court for execution of the Award?
T. Kalaiselvan, Advocate
(Expert) 19 December 2015
If you have decided to pay the entire outstanding loan amount better arrange to pay them in full or if you want to avail waiver facility through lok adalat offer, you may do it but the waived portion will still reflect in the cibil as loan amount waived, this may create an adverse impact for your future loan facilities.
Decide.
