Legal Question in Banking Law in India

Dear All,

I need some legal help and advice on my situation. I took a secured education loan in 2007 and 2008 for a total amount of 13 lacs and gave few agricultural lands as security. Bank has been charging an interest of 18% and 21% respectively since then. I completed my course in 2008 but due to recession in aviation industry I am unable to secure a job in the same however in 2011 after selling few lands we paid a total of 23 lacs to the bank and left with the balance of 2.5 lacs and at that point in timewe asked for a one time settlement to which they denied.

Now the amount outstanding is 6.5 lacs and recently my father who is the guarantor on the accounts has met with an accident due to which he is completely bed ridden now and after couple of months he will be in wheelchair( permanently physically challenged).

We as a family has exhausted all our savings and took few personal loans for the surgeries he went through and in couple of months he has to go through few more surgeries.

I need to understand my options at this time and

1. The interest rate charged by the bank, was it correct..? if not,then what are my options.


Asked on 7/05/16, 8:12 am

2 Answers from Attorneys

1) No. First obtain total bank statements from the beginning and check

the interest charged with penal interest, as per the rate of interest as per RBI

norms.

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Answered on 7/05/16, 10:48 am
Fca Prashant Chavan Expert Edge LLP

06.07.2016

Dear Sir / Madam,

If the Bank has levied interest @ 21% it is high. You should visit the Bank and recheck all the interest calculations with them, derive the final loan outstanding amount, repay and settle it.

Regards,

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Answered on 7/05/16, 8:54 pm


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