Non payment of personnal loan emi
monu
(Querist) 09 June 2015
This query is : Resolved
Dear Sir,
My friend has not paid 5-6 installment of personnel loan due to loss in his business. His loan was ended on 2005. Now the agents were coming to them after 11 yrs for recovery of installment.installment. Pls tell me what he can do. Pls reply me ASAP.
Thanks
malipeddi jaggarao
(Expert) 10 June 2015
It is not your friend. It is you. Have you signed any document after taking the loan? Though you were in tight position for some time you should have paid the instalments after you became comfortable financially. Now for 11 years what is the total demand by the Bank. The Bank may agree for One Time Settlement if you represent your difficulty properly. Otherwise they may go to Court (as I suppose no security was given for this loan) for recovery if they have the revival letters without break for every three years. Do not depend upon the agents. If you are really interested to settle the issue better visit the Bank Branch and discuss with the Manager directly.
SAINATH DEVALLA
(Expert) 10 June 2015
He must have already faced hell since 2005,from the recovery agents.
Whether he has acquired profits or incurred losses,it is his duty to clear the loan taken.Adequate security or surety must have been produced by him at the time of documentation. Hence he is liable to clear the outstandings.
Mention whether the bank has proceeded legally,if not it can be termed as time barred.The loan is time barred under the Limitation Act since the Bank did not take any action for recovery. The limitation period is 3 years. The Bank can not take any legal action against him.
Come out with the correct facts for a correct analysis and suggestion.
Rajendra K Goyal
(Expert) 10 June 2015
If he has not signed any revival letter / acknowledgement of debt, the loan is time barred.
Kumar Doab
(Expert) 10 June 2015
Agreed with Experts.
If you borrowed you should have paid, even if you suffered loss in business.
If you can bear the loss you can bear the debt also.
However the agents can not harass you.
You should have the nerve to tell/write to agency/bank to go to court.
You may go thru following threads;
http://www.lawyersclubindia.com/experts/Harassment-by-recovery-agents--442841.asp#.VXgHcVJ-hkg
http://www.lawyersclubindia.com/forum/Harrasment-by-icici-banks-recovery-agents-76271.asp
Dr J C Vashista
(Expert) 11 June 2015
Well advised by experts, proceed accordingly.
1. Settle the matter with bank, even if it is time barred.
2. You have borrowed then you must refund with interest/penalty (morally and socially), however, legally you may find some clue to get out of it through some prudent lawyer.
3. Loan recovery agents can be thrown out, they have no role.
