Legal Question in Banking Law in India

I have availed educational loan for my engineering studies during the period of 2005-2009. Amount is 2,80,000 INR. Since I took the loan, I kept paying the interest portion (First semester INR 35,000 - I paid 350 INR as interest for 6 months and for next semester, the next 35,000 INR is released and I paid 700 INR and so on). My 4 years of studies got completed. In 2009, there was a government law stating that the educational loan will be waived off by government. I approached bank and they told me to stop paying and wait for the confirmation from government to their bank. I submitted 1 lakh fixed deposit xerox copy as my security. last year, I paid one bulk payment of 1 lakh. Totally I have paid back about 2,76,000 INR so far towards the loan. I told the manager that I will not be able to pay further and asked for settlement. Lok adalat was given and I told that I will pay max of 1 lakh in 6 months time and close off the loan.. The manager was very stubborn in saying that I have to pay 1,86,000 and not a single pie less than that or else you can walk off. Since I was not able to commit, I informed manager and walked off. There were so many who came with me who has not paid a single penny since they took loan and they were now granted discount on the principal amount itself. I paid this much and ended up in disappointment. My mother is a divorcee and she is the co-borower. Now I got a notice from lawyer saying that I have to pay or else legal action will be taken. Please suggest me what to do.

Asked on 10/25/16, 3:23 am

Fca Prashant Chavan Expert Edge LLP

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25.10.2016

Dear Sir / Madam,

You should politely negotiate the payment and settlement of your loan account with the Bank's Manager and close the matter.

Regards,

Answered on 10/25/16, 3:40 am

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