Sos: ots on education loan

You can ask for detailed statement of your education loan account from beginning uptodate either by making a direct request to the bank or under Right to Information Act and satisfy yourself about the correctness of the balance outstanding. Regarding One Time Settlement (OTS), please submit a written proposal and send the same to the bank and its controlling office. You can expect a reasonable reply. The bank can /rather expected to consider your request  favourably

Dear  Sir,

I had taken an education loan of 4L in 2006,now it has become 7.5Lcs.I have been paying money in insallments but it  is in NPA status.till now I have paid Approx 3.5-4 Lcs.7.5 lcs more means very much difficult for me..

can anyone tell me

1)Is there any One Time Settlements available?

2)if so,whom should i contact, and should i take a lawyer with  me?

3)how much they can ask me to pay? i mean if i  pay 3-4 lcs(Principal amount) ,will they agree?

4)any Installments scheme?to pay my loan in installments?

Plz Help and guide me   I am very frustated....

The very first step would be to seek copies of loan documents from your bankers, which is obligatory on the part of the bank , to have given you at the time of disbursal of the loan. Second, ask for a complete detailed statement of your account (education Loan). If your bankers  have any OTS scheme for Education loan ask them to provide you with the copy of the same, if they refuse seek information under RTI Act 2005 by simply sending a letter with a Postal order attached for rs. 10/- the Bank is bound to reply you in 30 days. Addionally, lodge a complaint with the Banking Ombudsman, in your area. Yes even the OTS settleemnts can be paid spread into instalments for up to an year without any addional interest burden, but you may have to forgo some down payment benefits. Yours is an unsecured loan, at the most the Bank can go for litigation and reporting your default to CIBIL, there is no need to worry as Litigations in India get prolonged to decades, by that time you would have earned much more to pay even the Banks unjustified demand

B Bold, B Brave, Banks just try to over power the weak persons, they kneel down before the cronic defaulters, in fact, I got a default case of of Rs. 6.5 Crores coming since the year 1987 settled under OTS in the year 2010, for meager amount of Rs. 13.50 Lacs in OTS, on 4th Oct. 2010, and got bank from the Bank, the collateral documents of proerty lying under their custody

There is no hard and fast rule for OTS for Edu loans. Better have amicable settlement with bank. Bank is entitled to claim the dues as per your agreed terms and conditions, including penal interest if defaulted.  If you can prove that the dues calculated by the bank was wrong, then only you may try for legal remeady.