Legal Question in Banking Law in India

Recovery of personal Loan After 7 years. Is it legal to recover loans after 7 years? what does the law of limitation says on recovery of Unsecured Loan?

For the past 7 years the Bank was not able to file any suit against me for recovery or has issued me a legal notice. Very recently, they had contacted me through mail for the time ever by issuing a Recovery Notice by offering one time settlement or else pay all total oustandings with interest.

How the status of my CIBIL will be closed for this unsecured loan? or should I drag the bank and CIBIL to Court?


Asked on 2/16/16, 8:35 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

16.02.2016

Dear Sir / Madam,

Although I have already answered this query earlier, I will answer it again for the purpose of brevity. Inaction by the Bank does not absolve the borrower of his / her liability towards repayment and settlement of the loan. Your Credit Information Bureau of India Limited (CIBIL) report cannot be altered or closed without payment, settlement and closure of your unsecured loan. Since wasting time and money on Court can and may prove futile, one time settlement of outstanding loan is advisable and recommended.

Regards,

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Answered on 2/16/16, 9:10 am


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