Legal Question in Banking Law in India

Hello Sir/ Madam,
Good Morning.
I had availed an Educational loan from Corporation Bank in 2004. Guarantors for the loan were my father and his brother. No other securities were given. My father expired in 2008. The repayment was from 2010 onwards. As i joined for Post Graduation in 2010, the repayment got extended from 2013 as per bank rules. I'm supposed to pay the loan from 2013 June onwards. The Bank manager who took charge in mid 2010 is playing against us by sending notices telling legal actions. In the notice sent in July displayed the same guarantors name and mentioned 23 installments due. I approached Banking ombudsman. Meanwhile the bank manager sent a notice. In this he has changed guarantors name. He has removed that 2 names and written my mom's name (wrong middle name). Can a manager change guarantors name on his own? Please advice. I'm planning to move against this.

Asked on 8/21/13, 9:03 pm

2 Answers from Attorneys

Fca Prashant Chavan Expert Edge LLP

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22.08.2013

Dear Sir / Madam,

As already advised earlier, an educational loan is given for a maximum tenure of 3 to 5 years and not more. It seems to be your own sweet assumption that repayment of an educational loan granted to you in 2004 starts six years later in 2010, and more foolishly as you dream now, that it starts in 2013. I hope you are not doing a post graduate space scientist course in "rocket science" that it's taking you these many years to complete your academic education. At this rate, you might study for twenty years without taking up a job, and ask Corporation Bank to wait for repayment till you complete your education. No way. The Bank Manager is totally justified in his / her action of issuing you and your family a legal notice, replacing the name of your deceased father with your mother's name, and asking you to immediately repay up the entire loan amount. You should immediately settle the entire loan to avoid being arrested and put in jail.

Regards,

Answered on 8/21/13, 9:58 pm

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