Education loan

Hello everyone,

I have an education loan from SBI of Rs. 5 lac taken in June 2008 for my MBA, which is now around 6.5 lacs. I have paid only 2 installments of 20,000 Rs. 

The loan is in the name of my father who died in september 2009 during my course. I dont have a job right now. 

Can anyone please tell me, Am i Liable to pay the loan and whether anything can be done in this matter.

Any settlement or waiver ?

Please advise me.

Please check up with your bank as to whether the loan is covered under any Liability Insurance. Else, better search for an employment and fullfill your repayment obligations to the bank as you are never going to be permanently unemployed or become bankrupt to repay your loan. Banks generally admit such requests

Hats off to Mr. Trivedi and Mr. Parthasarathi to provide clarity and motivating the borrowers to be responsible,approach the bank , express themselves and settle the loan.
 

There is chance for exodus of return of persons working abroad in near future due to present recession and collapse in US.  Defaulted educational loans would be of large proportion.  It would affect the studies of the present students also.  When there was source for getting loans for substantial amounts, students availed it and paid to institutions who charge unreasonable huge fees.  Highly educated persons are now seeking jobs of even clerical cadre.  Unemployment and educational loan defaults are co-related and the problem is mounting up.  Urgent steps at the highest level by Finance Ministry are required.

Hi

i have taken a loan from PNB on my fathers name in 2004 of 4L. my father expired 3 years back and i have almost paied 80% of the amount. Since last 1 year i could not pay the loan amount due to some financial problem. the loan was on my fathers name and was not insured.

with accumulated interest they have again made the amount to 2L. i can pay the actualy remaining amount but not the accumulated interest. Please suggest what is to be done.

Anamika

@ Anamika,

Citizens like you are rare to find. It is good that you want to clear the good money of the bank.

If you are not the borrower you are not liable to pay.

If you have inherited any estate from your father then your liability to pay the debt of your father is at the max. to the tune of % of the estate inherited by you that too if the bank proceeds and proves the inheritance.

In its absence its your goodwill, and good intentions to clear the debts of your father. You may approach the bank and put forward your intention to clear the principle amount remaining from the date of death of your father provided: bank agrees to issue NOC and mention in the very same letter that bank shall remove the name of your father from the list of defaulters maintained with bank , credit rating agencies including CIBIL, Experian etc and a declaration bank shall not include any family member/legal heir/successor of your father into the list of individuals responsible for your father and hence defaulters list and with this declaration there shall not be any adverse effect on loan taking ability of any family member/legal heir/successor of your father.

Obtain the loan statement giving break up of interest and principle amount paid till date of death of your father and proceed further.

Under no circumstances you should pass on DOB, Pan Card number of any family member/legal heir/successor of your father to the bank.

In all probabilities BM of the bank and bank shall co operate.

I would like to thank all of you reputed persons who have been in a great  help to us..Sir, I did PGP in finance from IILM gurgaon and took a loan of 600000 to complete this education from college itself. I had completed this program in march, 2011 and have not been able to pay a single installment of the loan as the EMI is greater than my current salary. Additionally i have to support my parents financially in home town. Few days ago i received a notice from the lawyer to repay the due installement. I can not pay even a month installment as all my salary goes into surving in metro city and supporting my parents. Pease advise ASAP.

Regards,

Manveer

9650338189

Genuine defaulters can file Involvency petition under Provincial Insolvency Act, 1920 and Presidency Towns Insolvency Act, 1909.  Civil Procedure Code, 1908 also exempts many items from being attached by Courts and the same items find an exemption even through Provicial Insolvency Act, and Presidency Towns Insolvency Act.  Anything in excess of those exempted list of items will be surrendered to court by the person adjudicated insolvent by the Civil court and the receiver will sell off those items (in excess of exemted list of items) and distribute dividends among the creditors which may also include banks.  After being adjudicated insolvent by the Civil court, the insolvent shall apply for order of discharge which will release from the debts of creditors which remain due after receiving dividends paid by the court receiver.

Copy of the Insolvency petition to be filed by the debor is attached for the needy.

Insolvency laws are meant to ensure that no Creditor, howsoever genuine their case may be do not pressurize any borrower to repay in such a manner to the extent of not even maintaining minimum subsistence levels.  The spirit of Section 60 of Civil Procedure Code, 1908 is also same.  Perhaps these british laws are not used in modern India to the advantage of poor farmers who commit suicides across the country.  Perhaps these british laws are more humane than Indian laws that were enacted after independence.

Lots of regards to you for replying in a very less time...I have a question in response to your advise...which is that i do not have any sustantial assets on my name which can be sold by my institute to revcover the loan..Am i still eligible under this act...? And should i talk to the advocate who sent me notice about this act or do i need to hire another lawyer to file this petition...

Thanks,

Manveer singh

Only when you do not have substantial assets which you can sell or which they can attach through court following a decree against you, you are eligible to utilize provisions of this legislation.  As this is not widely used, you have to consult a who is conversant with this.  Take the copy of this petition (attached in my previous post) and go, they might understand what to do.  They cannot rob people even beyond subsistence levels in the name of recoveries. Dignity of Indians must be protected.

lawyer said am not eligible because i m accused under secton 138 as i submitted post dated cheques which have been bounced.............

Hello Everyone,

I am 28 yrs old. I took Rs. 4,00,000 from PNB as a education loan from 2007 to 2009.My repayment period was started from Aug, 2009. Till the day I hardly repay Rs. 50,000/- to the bank. It's because of I am suffering from huge health problem. In Jan, 2011 I recieved heart attack. I was very critical and expand Rs. 4,26,000 for angioplasty and more than Rs.1,00,000 till the day to other checkup and medicines. The wholesum amount I spend with the help of friends and relatives.

At present I am not in a position to start job. But, doctor spoke me in next 4 to 5 month you may start your job.

In these days bank officer regulary interact me and share very hard words for repayment. Day before yesterday I found a hardcopy of letter which was send by a Lawyer from high court. In the letter they maintain me to pay Rs.93,000/- in 15th day other wise you will charge under section 138 b.

I want to pay the loan but at present I don't have any option remains.

Anyone kindly help me to recover from this.

@manu Can you please mention what is the settlement money (*OTS) they asked or you paid