Legal Question in Banking Law in India

I asked this Question earlier now I'm providing some details.

Hi Sir,

I've taken education loan from SBI. Now its repayment is due and SBI is levying high interest rate.

My earning isn't good enough to repay the loan. Please provide me what will be the legal implications if I'll not repay it and is there any possibility of settlement for some amount between us.

"My father act as a gaurantor for this loan. Initially loan was disbursed @ 9% pa but now it is 14.25% pa. Moreover no property was mortgage against the loan."

pls help so I can go for settlement with the bank

PREVIOUS ANSWERS

1. The bank will take action if any property has been mortgaged for the loan, under the

SARFAESI Act. If there is no property mortgaged, they will file suit. Better approach the bank

putting a poignant account of your circumstances for rephasement of the repayment schedule.

J. Radhakrishnan

2. in case you cannot repay, you may wait for the bank to initiate legal proceedings and then you

may seek help of a lawyer.

RAJIV GUPTA

3. u can talk to them regarding settlement

UJALA VISHNOI

4. the bank may take action so pl go for settlement with Bank if possible

Aniruddha Pawse

5. You had sighed an agreement at the time of taking the loan and now you cannot say the

interest is high.

Sanjay Kalra


Asked on 8/24/11, 1:47 am

2 Answers from Attorneys
Sanjay Kalra Sanjay Kalra & Associates

If you are not in a position to pay back you debt then go for a settlement with the bank.

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Answered on 8/24/11, 2:00 am
KarVai Legal Solutions Rajiv Gupta 9811284735 Ch.No: 359, Western Wing, Tis Hazari, Delhi www.karvai.in

first go to the bank.... for settlement they themselves will give u the best possible way ...to resort issue if u find any illegality than u can tell usually in loans what matters is terms and condition u signed ... we here dont knw that was ur loan was subject to market increase or not.

so talking to them wuld be first opportunity..u shud avail

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Answered on 8/24/11, 2:31 am


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