Legal Question in Banking Law in India

PARTY GOT LOAN FROM BANK UNDER DEFERRED PAYMENT GUARANTEE (D.PG) .AGAINST

I.D.B.I. REFINANCE SCHEME PAYABLE IN 4 YEARS IN Qtly. INSTALMENTS PRINCIPLE PLUS INTEREST . THE PARTY CLEARED LOAN IN 4 YEARS. IF SOME INSTALMENTS FAILED ON DUE DATE , PARTY LIABLE TO PAY INTEREST AGAIN? ALREADY INTEREST COLLECTED FOR 4 YEARS. ALSO LET ME KNOW WHAT IS CONCEPT IDBI REFINANCE SCHEME UNDER D.PG. IDBI REFINANCE SCHEME MENT FOR SMALL SCALE INDUSTRIES TO DEVELOP . CAN ANY EXPERT OPIINION PLEASE


Asked on 5/27/16, 10:48 pm

2 Answers from Attorneys
Fca Prashant Chavan Expert Edge LLP

28.05.2016

Dear Sir / Madam,

If the party has already cleared the loan (principal plus interest) during the loan tenure and has the Bank letter of closure of the loan A/c, the party is in no way liable to repay any subsequent claim by the Bank on any account. If the party does not have loan closure document, the party has to check the interest charges, discuss, negotiate and settle it with the Bank and obtain the loan closure letter from the Bank.

Regards,

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Answered on 5/27/16, 10:58 pm

1) Failure to pay EMI on due date attracts penal interest which the borrower has to pay.

2) After loan closure, if there is genuine banks mistake in calculations, the same can also

be recovered.

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Answered on 5/28/16, 2:50 am


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