Suresh Naik (xxx) 05 March 2013

Regulirization of npa home loan

Hi Sir/Madam - I have taken the loan of 20.5Lac from One of the bank in 2008 to buy a flat in Hyderabad. I paid nearly 8 Lakhs towards interest/principle till 2011 May(+8 Lakhs Down paayment and Registration Charges). However, due to my personal issues I discontinued to pay the EMI and decided to leave the flat. I have informed each every personnel issues to bank regularly by written and oral. The account has Become NPA and bank has ceased my flat and ready to action. When i have recently discussed with bank authorities, My Outstanding Principle amount 19.8 Lakhs and 22 Months Interest for the principle i.e. around 5 lakhs. And they are planning to sell that flat for 16 to 17 lakhs. Now my Quetions are: 1. Most of my personnel issue are going to resolve soon aprtially, and ready to regularize the home loan. Is there any possible ways to convince the Bank for Reduce of Interest which they have charged during last 22 Months. As due to recession the property rates are came down now property market value will be less than 20Lakhs. So it is highly impossible me to Pay the 19.8L(Principle)+5L(Interest). 2. Please guide me how can i negotiate with bank to regularize the home loan for only for Principle amount( without Interest) as i am not able to pay interest in this situation and in future also? 3. How to tackle with bank to avoid any future litigations? Thanks & Regards, Suresh

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3 Replies

c.p.s. ramachary (1500) 05 March 2013

You contact the bank for settlement of a your account under bank's corporate's cophrehensive compromise policy. All the banks in 1998-99 adopted certain guidelines under 'settlement management' policy. If the bank is interested, they may entertain your request. Before that your record of recovery should be good and for default there must be strong reason acceptable to the bank. Even though you have defaulted 22 instalments, the bank has not yet switched over to SARFAESI Act. Contact the bank immediately and pay all the arrears of defaulted instalments withy interest and save your house. Time and tide wait for none. You may request the bank to waive penal interest. as financial year ends by 31.03.2013. After March 2013 the bank may not listen to your request and take recovery action.

c.p.s. ramachary (1500) 05 March 2013

You may contact the bank for settlement of a your account under bank's corporate's cophrehensive compromise policy. All the banks in 1998-99 adopted certain guidelines under 'settlement management' policy. Ofcourse this is at their discretion unlike RBI OTS. If the bank is interested, they may entertain your request. Your record of recovery should be good and for default there must be strong reason acceptable to the bank. Even though you have defaulted 22 instalments, the bank has not yet switched over to SARFAESI Act. In fact you are very lucky. Contact the bank immediately and pay all the arrears of defaulted instalments with interest and save your house. Time and tide wait for none. You may request the bank to waive penal interest. The bank may yeild to your request, as financial year is coming to close by 31.03.2013. After March 2013 the bank may not listen to your request and instead of that, the bank may take recovery action.

khalid masood (partner.) 07 March 2013

As mr. Ramachary has said you are very lucky that sarfeasi measures have not been initiated against your account. Because banks have lots of buyers for flats which are under the possession of the bank. My advice is that you should contact the higher officials of the bank and explain the reasons for your loan default. If u explain ur genuine reasons in branch level they will not show any inclination in deciding the issue. Because they are totally powerless and only zonal level officials can take concreate decisions in ur case. They welcome the borrowers graciously and understand their problems and and provide effective solution to the given situation. Most of the time they allow the account to regularise if and only if the borrower is keen on regularaising his account.