Nationalised bank : higher loan amount than eligibilty

You have availed the loan, and while communicating sanctions Bank gives a sanction communication and gets your acknowledgement.  You have availed entire amount (Forget, whose mistake is that as there is nothing wrong in Manager sanctioning only such amount.

First you should repay the excess amount availed by you, and then seek proper EMI.  If manager is not co-operating, you can take up the matter first with higher authorities and then escalate it to Banking Ombudsman.  

To sum up remit surplus amount availed by you and then for rescheduling or refixing of EMI equal to lease rent.

(Manager may use harsh words that he will recall the loan etc., but rarely a manger resorts to such step, as he is interested in showing his assets only as performing assets.)

Dear Sir,

I amnot sure about the correctness of ur query.No Financial Institution will sanction a loan without proper documentation.Nothing oral can be accepted by law.The documentation is done only to avoid future legal complications.If you have been sanctioned excess loan kindly repay to that extent,so that your liability will be reduced,tothe value of the rent  payable by the bank

I am totally agree to the above advise of Mr Sainath nothing nothing more of importance can be added to it.

Agreed with the opinions of the above experts.  If at all you find that the excess loan sanctioned is in no way going to assist you and is going to remain as dead investment, you may decide about returning the same to the bankers and communicate in writing for rescheduling the loan and its repayment as per the terms.  The bank manager cannot unilaterally decide about recalling the loan if it is performing well,in the event of his arbitrary decision, you may escalate the issue with the higher authorities of the bank narrating the entire incidences supported by the authentic documents and seek their relief.  Suppose your representations with the higher authorities also fail to invoke the desired response, you may either approach banking ombudsman or appropriate consumer fora for remedy and reliefs.

Mr. Raja,

How do you link with excess payment than eligibility and rescheduling your EMI with lesser amount than the due according to amount of loan? In other words, you have requested indirectly to extend the term of your loan beyond the prescribed or agreed term.

However, the present descripttion of your case may not suffice to arrive at some conclusive opinion for your guidance to help you. Copy of the agreement entered in to by you with the bank is necessary to be gone through to appeopriately analyse your case and to suggest you suitable solution.