Personal loan
Mrs. Sharma
(Querist) 17 June 2013
This query is : Resolved
I would like to know the consequences of the following case:
A personal loan of 5 lacs was taken in 2008 and only 9 installments were paid due to financial issues.All this while there has been no interaction with the bank ( from dec 2008- till now) But now the collection agents harassing calling my relatives (this is creating problems with my in laws). I am currently not in India with no plans to return any soon.
However, I have no means to pay as of now nor does my husband have. I have no assets in my name as well. I cannot currently work as i am advised bed rest by doctors due to pregnancy.
Ques.1 - What will happen if i inform the bank that i have no means to pay or no assets that I can sell?(they will not believe me I know). They are recording all the calls. Can this interaction be used by them against me in the court as a proof?
Ques.2- If i dont interact with the bank at all?
Ques.3- Calling my relatives is what these agents must not do but they are doing which is causing problems for me with my in laws and husband. Can they be stopped in anyway? What action I can take against this?
Ques.4- What can be my defense in this situation?
Pls advise as I must stay stress free in my situation. If i had the means I would have paid off everything with interest. But rite now my hands are tied.
Thanks in advance for your support.
Vidhi Joshi
(Expert) 17 June 2013
a) Bank might impound your passport or issue a notice under sarfaesi act, calls between you and lender cannot be used as evidence against you.
b) Bank will list you as a defaulter and notify the same to RBI.
c)No bank cannot harass you or your relatives, approach bank ombudsman.
d) No specific defense but to pay lesser amount after proper settlement with bank.
Dr. Jyothi Vishwanath
(Expert) 18 June 2013
Check with your local advocate if bank claim is time barred. In that case, you can issue a legal notice to the Bank
Rajendra K Goyal
(Expert) 18 June 2013
SARFAESI Act. Section 13(2) provides that notwithstanding anything contained in section 69 of Section 69A of the Transfer of Property Act, 1882 (4 of 1882) any security interest created in favour of any
secured creditor may be enforced, without the intervention of the court or tribunal, by such creditor in accordance with the provisions of this Act.
Now in your case:
a) It is not clear in the query that any security was given to the Bank or not.
b) If you have nothing to pay try to avoid contact with Bank till you are in a position to pay.
c)You relatives should lodge complaint against harassment to all platforms i.e. bank, their Head Office, Banking ombudsman, RBI and continuously follow it. and in case of need to police also.
d) Since you are not in a position to pay ,silence is the procedure till you are in a position to pay.
In case bank file a recovery suit, defend it through lawyer.
Sudhir Kumar, Advocate
(Expert) 18 June 2013
you can tell the bank that they should properly file a civil suit and should not adopt illegal ways as you are also running pregnancy in foreign land and any loss caused to your body due to tension shall make them criminal liable in foreign country or in India as decided by your lawyers..
Mrs. Sharma
(Querist) 18 June 2013
@ Mr Rajender K
It was a personal loan and no security was given. In fact at that time acc. to my salary I was not even eligible for this amount. I dont know how and why bank sanctioned the loan. Anyhow, Is it possible that my passport can be impounded ?
Raj Kumar Makkad
(Expert) 19 June 2013
You passport cannot be impounded in the given case as the recovery proceeding is civil in nature.
malipeddi jaggarao
(Expert) 20 June 2013
Mrs.Sharma
A part of your explaination:
"In fact at that time acc. to my salary I was not even eligible for this amount. I dont know how and why bank sanctioned the loan."
Do you mean to say that the Bank has sanctioned personal loan without taking any security and without your request? This is a clear escaping attitude. First of all you should avoid this attitude if you really wish to settle the issue.
You have taken a loan of Rs.5 lakh way back in 2008 and paid only 9 instalments. You have means to go abroad but no means to pay the bank's money. You are supposed to adapt the following steps:
1. You should keep contact with the bank irrespective of non-payment of instalments for genuine reasons and instil confidence in the bank that you are willing to pay and once the position is improve you will repay the debt. This you have not done.
2. You are living in abroad. Have you informed your address to the Bank? Probably no. That means you simply ran away thinking that bank can not trace you. You should have given your changed address to the bank so that they can establish contact whenever it is required.
3. As regards harassing your relatives, mere contacting and asking for your address and counselling them to prevail over you to repay the bank's money does not amount to harassment. When your address is not known, does the Bank has any right to contact your relatives to find out your address?
My advice is:
1. Since no property is taken as security, no SARFAESI Act action.
2. As rightly advised by Mr.Rajkumar Makkad they can not even impound your pass port as it is a civil matter.
3. Bank will continue contacting your relatives and build-up pressure if you do not contact them. Please give your mail address and explain the present status and assure them that you will repay the dues at the earliest possible time. If possible pay some money and send a message to them. Avoiding bank will definitely increase your stress.
4. As regards time-barring of your debt, you can take this defence if you are out of India for more than 3 years as your pass port is the foolproof to take defence that you have never signed any revival document during the last 3 years hence the debt is time barred. Perhaps bank is building up pressure fearing the debt will be time barred shortly. Hence you can tell the bank that you are ready to acknowledge the debt in whatever way they wish, say replying to their mail confirming the present liability, sending the revival documents duly putting your signature etc. These acts will make the Bank believe that you are not a willful defaulter and they may give some time if you represent your financial problems properly. Avoiding the creditor that too banker after availing the debt, will land the debtor in more problems.
Rajendra K Goyal
(Expert) 20 June 2013
The views of Expert malipeddi jaggarao are practical.
It seems that the Bank has not shown due intelligence and care in sanctioning and follow up of the loan, though the position is not clear , the documents may have been time barred. Harassment to near relatives can not be termed as only contacting process. presently the questioner has no means to pay as mentioned by her. In such circumstances there seems little need for reviving the time barred debt if it is time barred.
