Loan default

Querist : Anonymous (Querist) 24 July 2018 This query is : Open
Hi Experts,

I request your kind advice on the below Civil matter.

Suppose if a person has taken some big loans from BANKS and has been paying without any defaults for years and has a good credit score but due to some issues in the family disputes the man had to spend some time in JAIL (some months) due to which he loses his job and income.

He is in a state of no job, no income and unable to repay the money taken from banks, he is released on bail or acquitted but is unable to get a job for some time. NOTE that no allegations on him are proved yet and all are matrimonial disputes.

What are the legal implications on him from the banks? Will he have to face new cases from the BANK for unable to pay the loans?

Will the banks put pressure on other family members to re-pay the dues even though they have no idea of these loans nor have signed any co-applicant/surety document.

What if he is convicted in some legal case like DV or Maintenance or even 498a? How does the Banks look at this or what legal remedies are available for the man?

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Sudhir Kumar, Advocate (Expert) 25 July 2018
In the entire story there is no fault of the bank.

Your specific queries are repl;ied as under

What are the legal implications on him from the banks?

THEY WILL RECOVER MONEY, THEY KNOW HOW TO DO.

Will he have to face new cases from the BANK for unable to pay the loans?

CERTAINLY

Will the banks put pressure on other family members to re-pay the dues even though they have no idea of these loans nor have signed any co-applicant/surety document.

BANK CAN LEGALLY COMPEL HIM OR HIS GUARANTORS TO PAY.

What if he is convicted in some legal case like DV or Maintenance or even 498a?

BANK HAS NOTHING TO DO WITH HIS CONVICTION OR ACQUITTAL. IT IS BEYOND THEIR MANDATE.

How does the Banks look at this

BANK HAS NO CHOICE BUT TO TREAT THIS LOAN AS NPS AND TREAT HIM AS DEFAULTER

or what legal remedies are available for the man?

NONE AS FAR AS LOAN IS CONCERNED.

Dr J C Vashista (Expert) 25 July 2018
1. Vague query without background / facts of the case. Prima facie it is an academic exercise.
2. You will have to reveal your identity if you are seeking an obligation from experts FREE OF COST as per rules of this platform, no reply for anonymous author.

R.K Nanda (Expert) 25 July 2018
Contact local lawyer.

Querist : Anonymous (Querist) 25 July 2018
Hello Sudhir Sir and other experts,

The person is one my relative. He is facing false cases from his wife such as 498a and DVA.
He has valid insurance for the loans or the banks deducted money for insurance for loans stating that if he loses job unexpectedly the insurance will cover for the loans and I see full amount of loan covered in the policy. If the insurance doesn't work then what is the use of such policy in case like losing job out of his control.
Can we do something legally (file bankruptcy etc) for the protection of his family members so that banks don't harass them as they had no knowledge of the loans and have not signed as guarantors for the loans anywhere.

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