Home loan + credit card and sarfaesi act .need suggestion
kamal
(Querist) 06 December 2015
This query is : Resolved
Dear Experts,
I need your assistance.
My father is paying Home loan from last 8 years and only he is not able to pay credit card outstanding amount from last 3 years due to his skin cancer problem and he is on bed & even shut down his business due to his health and loses 3 years back.
Now ICICI bank has send us notice under section 13(2)of SARFAESI ACT to pay home loan amount with in 60 days otherwise they will sell our property.
We are paying our home loan and yes this year 2 months delayed by 3 to 4 days only but never happened that such notice came at our home. We got calls from ICICI bank to pay credit card outstanding but we are unable to pay even in 3 months EMI. we are requesting them to make installments for 6 to 9 months. I need your suggestions what should i do now they are not listening us and now how should i reply them with this notice and they made our home loan NPA.
Please assist,
Regards,
k
Kumar Doab
(Expert) 06 December 2015
Approach an able counsel specializing in such/banking/consumer/SARFAESI ACT with details and documents on record and act ASAP.
M/s ICICI iis probably pooling and calling in all debts.
However you have left home loan installments unpaid for 3-4 days only.
Your father is not insolvent.
By defaulting you have spoiled other options to borrow and clear the debt.
Can anyone of other in the family arrange monies to clear all debts?
Let your lawyer that has examined all docs and details advise you now.
Rajendra K Goyal
(Expert) 07 December 2015
Since the Bank is having immovable security with them and they may proceed to recover.
Better arrange for the money and get the matter settled. Interest on credit card amount is very high.
You should find out whether both loans are interconnected?
Babu Narayanan
(Expert) 07 December 2015
Though you are paying HL installments regularly, your credit card account become NPA . AS per IRAC norms if one account of a customer is classified as NPA , then other accounts of said customer will become deemed NPA . Hence ICICI Bank is in order in issuing notices under SARFAESI Act. Hence you may close credit card dues
K.S.Srinivas
(Expert) 11 December 2015
In in your interest, it is advised to clear the dues immediately.
Kumar Doab
(Expert) 12 December 2015
IRAC norms can be seen at:
Master Circular - Prudential Norms on Income Recognition,
Asset Classification and Provisioning pertaining to Advances
Part A
https://rbi.org.in/Scripts/BS_ViewMasCirculardetails.aspx?id=9009
1.3 Banks are urged to ensure that while granting loans and advances, realistic repayment schedules may be fixed on the basis of cash flows with borrowers. This would go a long way to facilitate prompt repayment by the borrowers and thus improve the record of recovery in advances.
3.3.2 In the absence of a clear agreement between the bank and the borrower for the purpose of appropriation of recoveries in NPAs (i.e. towards principal or interest due), banks should adopt an accounting principle and exercise the right of appropriation of recoveries in a uniform and consistent manner.
4.2 Guidelines for classification of assets
T. Kalaiselvan, Advocate
(Expert) 14 December 2015
First of all issue reply to the notice within 60 days and and have personal talks with the manager of the bank about settling the loan amount including the oustanding CC loans.
The circular referred by the above expert in this regard is clearly against you, so better avoid unpleasant situations.
