Legal Question in Banking Law in India

I am applying For Education Loan in OBC in 2001, But due to late sanctioned of loan, I am return the Cheque to Bank.

Now after 9 years, they are forced to me for pay Rs. 6500(Approx).

As per talking with Branch Manager, He said that this is charges and interest on Life Insurance Premium Which is paid by bank For 3 years.

I do not understand why they charged to me for premium if could not get loan,

why they are paid Premium for 3 years.

When I am Return cheque next day when it issued and intimate them to close loan account.

What can i do?

Am i liable to Pay them or not?

Please advice me


Asked on 7/22/10, 10:56 am

1 Answer from Attorneys
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

If you did not avail the loan, you may negotiate the charges. However, the first year premium is paid prior to disbursement of loan. There are some processing charges also. You should try to settle the matter amicably with the Bank.

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Answered on 7/25/10, 6:17 pm


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