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Shekhar (Not working)     25 September 2013

Education loan settlement issue- urgent advice required

Dear Experts, I need your advice to settle my education loan. I had taken an educational loan from SBI in 2004 wherein my father was a co-borrower. My father and me had an understanding that he will be clearing the EMIs from his account lying in the same branch. Unfortunately my father passed away in 2011 and later on I came to know from some of my relatives that bank has started sending reminders / notices to our old address (temporary address of my native place) and asking for settlement of dues which has soared up heavily. I also came to know that very few EMIs were paid earlier which makes the issue even more critical. My father is also no more to clarify all these things. Now thing is that whatever the circumstances are there I want to get rid of this episode. I have not given any cheques nor signed any ecs for the purpose so there is no instrument that comes in picture. I would request experts on this subject to kindly suggest me on the following. 1. How will it affect my credit history? 2. What kind of legal action bank can take against me considering the fact that I no longer live at my native place where I had availed the loan? 3. Shall I directly contact the bank to discuss the matter or shall I take services of a lawyer? 4. Is there any way out to have it settled with all payment penalties waived off? I am very worried and apprehensive about the situation. Please help me in this regard.


 1 Replies

Ajit Singh Cheema (practising Advocate)     28 September 2013

your queries are replied hereunder in brief :1) Your credit history will be very badly effected . 

2)The bank may have to file a suit and get a decree against  you, if there is no mortgage of  property ,otherwise if there is any property mortgaged the same will be sold out of court under the Sarfaesi Act.

3) It is very sincerely advised that you should personally contact the branch manager and explore chances of settlement.

4)  Please remember you can explore the possibilities of settlement only by coming to the Negotiating table and by running away.


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