Query on education loan
karthik ramalingam
(Querist) 20 October 2014
This query is : Resolved
Hi,
I availed 15 lakhs education loan from UCO bank pondicherry in 2009 for doing MBA in UK. My bank manager called me couple of weeks ago and said you have paid any money after that 2 lakhs you paid in 2012. So your account gone NPA. IF you don't pay five lakhs with in one month we will auction your property and take our money. I have did not have that much money, so i decided to sell half of the property and pay 10 lakhs in to the loan account and told the manager. the manager said the loan amount has come around 22 lakhs including interest. if you pay 10 ten lakhs and release you property from the bank you have to give another collateral security for the rest 12 lakhs. We both agreed for that and found a buyer to buy half of the property in bank. we made a sale agreement and got 10 lakhs in advance and paid that amount to bank as me and the bank manager agreed. after i paid the money to the bank i asked him to give me the original document and take another property as security. but unexpectedly the bank manager is not giving the original document and insisting me to pay the loan amount in full. I told him that i am selling the property only for 12 lakhs how can i pay 22 lakhs in full. but the manager said he can not do anything i have to pay the amount in full. Because he was agree to swap the document by paying 10 lakhs and made agreement to the buying party. I have to get the document from the bank and do registration for them otherwise they will take legal action against me. now what i am wondering is can i take legal against the manager for betraying me. please some one help
ajay sethi
(Expert) 20 October 2014
no you cannot take legal action against bank manager . he is merely trying to recover loan amount with interest . make a written application for one time settlement .
Anirudh
(Expert) 20 October 2014
Please indicate the following:
1. How much loan you availed?
2. What is the loan repayment to start?
3. How much is the monthly EMI that you have to pay to the bank?
4. When did you started earning?
5. Whether the balance portion of the property is saleble for more than Rs. 22 lakhs?
Devajyoti Barman
(Expert) 20 October 2014
You have only option of amicable settlement with Bank or of if it as money is still due from you and you are bound to pay it.
karthik ramalingam
(Querist) 20 October 2014
to Mr Anirudh,
1. I have availed 1500000 and repaid 10 lakhs
2 i completed my degree in sep 2012, so the repayment period should start in september 2013.
3 monthly emi is around 40000 per month
4 I started earnning since lost july
the balance portion of the property is saleble for more than 30 lakhs
Rajendra K Goyal
(Expert) 20 October 2014
Bank may not release the collateral if loan is not fully paid. Try to have amicable settlement.
Dr J C Vashista
(Expert) 20 October 2014
Although the bank has charge over the property and shall not release documents qua the property till final recovery of the loan and "some" interest yet discuss the issue with the higher bank officers (after taking the branch manager in confidence)for an amicable settlement giving them assurance for balance of the loan amount with waiver of a part of interest, where you can manage to pay EMI.
Donot adventure for legal recourse, which will go against you.
karthik ramalingam
(Querist) 20 October 2014
To Mr Dr J c Vashista,
thanks for your reply. I am not asking the bank to give me the documents before the full loan is settled. I am just saying that i am paying half of the loan and giving another collateral security which worth more than the one already in bank and repay the rest of the amount in emi. the AGM of the bank agreed to swap the documents in the first place after I paid 10 lakhs he changed his minds. this is not the way to recover loan from customer. the money I have paid to the bank is an advance amount received from the party who is going to purchase the part of the property. We made an agreement which ends this month. If i did not get the document ready for the registration he will take legal action against me. there are only two ways for me, one, give him the advance amount back to him with some interest or get the document from the bank buy giving another document to the bank as collateral security. please help
anil kumar
(Expert) 21 October 2014
Your case is of substitution of one collateral security with another which is more than sufficient to cover the outstanding loan amount without any change in the repayment schedule or alternatively releasing one-half share in the property agreed to be sold to the buyer without releasing the documents covering the whole property and getting the documents of one addl. property as proposed to be offered by you. In this case the Branch Manager should have processed your request and sought approval of the competent authority before agreeing with the customer and this is normally agreed to by the creditor Banks. You have also committed a mistake by relying on oral assurances. Further, the buyer of the half portion of the property must be aware of the existing encumberance of mortgage in favour of the Bank. If the same is mentioned in the sale agreement then there is no breach or suppression of facts on your part or any delay in completion of sale on your part but is sole due to non-cooperation by the Bank officials.
The Bank will not suffer merely by releasing the half-portion through a simple letter without releasing the documents representing the whole property since the proceeds of the property sold has already been received by it in the borrowal account and the buyer would also be freed of the encumberance when sale deed is executed. In fact, by the above course the Bank is able to obtain additional property which you are offering but for this exercise the Bank may have to obtain title search report and valuation got done so as to convince the sanctioning authority.
karthik ramalingam
(Querist) 21 October 2014
To,
Mister Anil Kumar,
Thank you so much for your reply, The one who agreed for document substitution is the Assistant General manager of the branch. I think he does not have to get any approval from his higher official in the regional office for this help. he is on his own to do this. And one more thing the bank's loan matter is not registered with the registered office, so it won't show in the encumbrance. But I still told the buying party that the property document is under education loan and the manager agreed to substitute the documents with other one by paying 10 lakhs in to the loan, then only he gave me 10 lakhs advance. then we both got trapped. now I dont know what to do
T. Kalaiselvan, Advocate
(Expert) 21 October 2014
Follow the advise of experts herein above especially the advise of expert Mr. Anil Kumar, which appears more suitable and come out of the crisis. Approach the higher office of the bank properly and reconcile the issues.
karthik ramalingam
(Querist) 22 October 2014
Thanks very much for all for your consultations....
malipeddi jaggarao
(Expert) 25 October 2014
I too agree with the advice of expert Mr.Anil Kumar.
Some Bank Managers make false promises only to get the recovery and once the recovery is made, they go back on these promises as they do not have the authority to make such promises. In your case the same thing has happened.
Now, you address a letter to the bank quoting the conversations you had with the Bank Manager asking him to:
1) accept the new collateral security which will cover the outstanding;
2) release the document of previous property;
3) Reschedule the loan installments with an assurance that you would hereafter regularly pay the instalments.
Let him obtain permission from his concerned higher authorities. Till then you will have to ask the prospective purchase to wait.
The best option is, as you have already chosen to sell some property and regularise the loan, think of closing the entire loan account and get the document released.
