Ram (Engineer) 22 March 2014

Bank manager is harassing for education loan repayment

Hi, I had taken education loan of 4.3L in march 2009 and I completed my engineering in june 2012.I started repayment of loan from September 2013 after getting job and joining the company. Till now I have paid ~70000. Bank deduct 10250 every month from my father's salary account as an installment and the branch manager is fully aware of this. I was beneficiary of CSIS subsidy scheme and the entire interest amount till july 2013 was credited into my account but my account summary was not getting updated, later I got to know that my account has become NPA. When I contacted manager then he told me to pay the interest of around one lakh, I told him that entire interest has been paid through subsidy and there was no interest left. I calculated the amount was 4.3Lakh and installment of 10000 was sufficient to repay within 6 years and hence my father gave an application to bank to deduct 10000 every month from his salary account. recently, when I checked my loan account through online banking, the status was showing mature/close and reason was showing asset recalled DL. when I contacted branch manager, he told that since you didn't pay the loan within 6 month of completion of education, legal action will be taken against you. Please help me, since I have been paying consistently and installment is suffice to repay within 6 years, I am getting harassed and bringing bad opinion about banks.

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9 Replies

G.L.N. Prasad (Retired employee.) 23 March 2014

First file RTI Application seeking for certified copies of all loan documentation papers executed by you, specific reasons for making an operative account as NPA, though regular repayments are there, and for a copy of such loan account ., and ask for exact amount of overdues with break up of interest and principal. Infact, Bank has to adjust interest first and principal later. Read the terms and conditions mentioned in your term loan agreement. After studying entire documentation, you may seek for rescheduling your loan.

Please do not jump into conclusions, as NPA makes the Bank a head ache and adding account in those already accounts brings them more trouble. It is advantageous to borrower to some extent, as you can bargain for concessional interest for outright closure. Do not suspect Bank and understand their problem and negotiate. You need not worry about this, and be thankful for the Bank for assisting you in time.

If you have any specific doubts, seek information from the concerned branch through RTI.

CA Mari sankar (Audit Manager & Taxation) 23 March 2014

How to File RTI Application. Guide me for that

T. Kalaiselvan, Advocate (Advocate) 25 March 2014

Write to the Bank manager to furnish the details of the loan and its repayment till date, if he is not obliging, write to the Banking ombudsman and after follow the legal course of action by sending the lawyer's notice and further legal steps.

G.L.N. Prasad (Retired employee.) 25 March 2014

Application dt....seeking information under RTI Act filed

Before PIO,..........Bank..........................(Name and address of Bank) with

RTI Fee: Rs.10/- Indian Postal Order No.......Fvg. Accounts officer filed by

Applicant:....................................................................(borrower's name and address)

Brief Facts: Education Loan of Borrower Name:............................A/cNo....................Date of adv...............

Information solicited:

Please provide me

1)Sanction copy of terms and conditions

2)certified copies of all documents executed

3)Statement of account up to date.

4)specific reason for treating the account under Non performing assets,

5)The date from which account became NPA, and copy of such notices issued legally

Place

date................................Applicant.

G.L.N. Prasad (Retired employee.) 25 March 2014

Ram (Engineer) 10 April 2014

Hi Sir, First of all thanks for the suggestions. I filed an online RTI and asked for 1.Loan docs 2.Outstanding balance with the break of interest and principal amount but didn't get the information through online RTI. The reply was as below:- "Under RTI only such information is required to be supplied which already exist and is held by the public authority. CPIO is not required to create information or to interpret information or to solve the problems raised by the applicant.As regard to query 1 and 2 it may be stated that the information may be available with concerned Bank." > Shall I have to file RTI directly in bank? can't I get information through online. > I have also sent mail to bank copying customer care and nodal officers and it's been 15 days but I haven't got a reply. Sir, my intension is to keep paying the installment and repay the loan within time but at the same time I am ready to fight with the bank if they act like ZAMINDAR. Please suggest me what shall I do or correct me if I am wrong.

minu (m tech in software engineering) 21 April 2014

hi sir, i i had taken my b tech education loan from corporation bank upto 4 lacs at 2010 since i have a due of 70,000rs interest to pay they are harassing me and my mother that they will send some police to arrest you .since i was doing my higher studies i could not repay the interest ,just now i finished my higher studies and i have got a job not good enough salary to pay .please help me that i will repay the education loan amount within 6 years.

G.L.N. Prasad (Retired employee.) 21 April 2014

Mr.Ram use traditional methods for obtaining information, and always send RTI Application through Indian Postal Order by Regd., post only to the concerned branch where you have availed the loan.

(A suggestion was given to you, spoon feeding even the application. Please have faith and follow advice. It is also not correct that on line RTI Application CPIO should have not replied like that, either you might have not mentioned your branch and bank name clearly or that CPIO might not aware of dealing with such applications, as he should have sent scanned copy to the concerned branch. You may even file first appeal before the concerned branch, if you have mentioned the branch name correctly, and state CPIO has neglected to send RTI Application to concerned branch deliberately. The denial giving such irrelevant reason is not justified under RTI Act.

Mr.Minu, Do not worry and banks will be considerate write a requesting letter that as you could not secure the job in time there was a delay, and now that you secured the job you will pay future installments. To show your commitment send six post dated cheques as installments and ask them to consider for rescheduling. Certainly, they will be considerate.

Arresting and jail etc.,are remote possibilities if you fail to pay even after they file suit and get a decree or if you have cheated the Bank. Do not take any thing serious and attempt to open a discussion with Manager and do write letter with six posted cheques in EMI.

minu (m tech in software engineering) 22 April 2014

thank you for the suggestion sir,but the bank manager will not allow they wanted me to pay 70000 rs at a time even though if i give requesting letter to bank since because i did not take education loan for higher studies over thier and took from our nearest branch.so bank manager got angry and harassing me ,if i give the requesting letter and post dated cheque will help me