Personal loan settlement letter terms and condition
sachin
(Querist) 04 December 2023
This query is : Resolved
Hello,
we got settlemeent letter from bank. Could not understand the first six terms and conditions.. Can you advice.
1. Please be aware that the instalment for repayment of the settlement amount should be received by the bank on or before the agreed date of repayment in this letter.
2. Settlement would come into effect on acceptance and payment of the first instalment by the borrower.
3. As required under applicable regulatory guidelines, compromise settlements where the actual repayment period exceeds three months from the date of first amount paid will be treated as restructuring.
4. Post settlement, all the other exposures at borrower level shall be reported as µRestructured Non-Performing Assets¶(NPA). Any changes in asset classification of these exposures shall be made in accordance with prevailing regulatory norms and guidelines.
5. Subject to the terms contained herein, the settlement amount agreed upon by the parties shall be appropriated in the following order of priority:
a. Firstly, towards the principal amount
b. Secondly, towards any accrued and unpaid interest
c. Lastly, towards any other charges, commissions, fees, taxes, levies (as applicable)
6. The above-mentioned account will continue to accrue interest and penal charges as per the banks existing policy till the last payment is repaid in total. Posts the realization of all the payments, reversals and waivers will be processed on your account as per agreement vide this settlement.
T. Kalaiselvan, Advocate
(Expert) 05 December 2023
It is about the settlement agreement and the terms that are to be adhered to on the basis of the settlement agreement.
If you go through the conditions you will understand what they are and you have to act upon.
For further clarifications, you can consult any lawyer of this forum through their contact details available in this website or a local lawyer.
P. Venu
(Expert) 07 December 2023
Yes, a local professional is the best person to assist you.
