Legal Question in Banking Law in India

I ASKED BELOW QUESTION AND GOT A REPLIES AS MENTIONED BELOW

hi, I took a education loan from PNB of RS 340000 in OCt 2005, to study abroad. But i didn't got the visa, hence i applied again and got the visa for Sep'06 batch, in the mean time the DD got returned and bank issued the fresh DD and sent to university. Some how I was not been able to complete my studies and returned to India, then i spoke to Bank and returned their principal amount of INR 340000/- in July2008, on one go also paid INR 45000/- as interest till date, now still i am getting call from the bank saying you need to pay Rs 100000/- more as interest. Now I m not in a position to pay any further . I spoke to the bank manager, but they are not ready settle the same.

Please advise what can I do in this case and also what steps bank can take in this matter

Regards

Pankaj

Answer (1 of 1)

file a case before the Banking ombudsman against the Bank. Before that appeal to the bank chairman to waive off the excess demand. Only if that does not give any relief, then file a case before banking ombudsman

J. Radhakrishnan

independent Practice

Priya Mahaall, New 27, Old 12/3, Deivasigamani Street

Chennai, NUS 600014

NOW, I WANT TO ASK, IF I WILL FILE THE CASE BEFORE THE BANKING OMBUDSMAN AGAINST THE BANK, WILL MY NAME COME UNDER CIBIL OR IT WILL AFFECT TAKING LOAN IN FUTURE

India | 110018 | Banking Law

9/16/10, 9:42 am

Answer (1 of 1)

you have to consider filing a case for declaration before the court that your loan has been paid off and that the demand is illegal. It would be advisable to take the fact based advise showing the documents.

Vishwa Arya

Arya & Co.

Lawyers' Chamber No. 551, New Delhi Courts, Patiala House,

New Delhi, 110001

NOW I HAVE RECIEVED A LETTER FROM THE BANK WITH A COPY TO MY OFFICE (WHERE I AM WORKING), ASKING TO REPAY THE AMOUNT THROUGH MY SALARY. PLEASE ADVISE WHAT STEPS SHOULD I TAKE???

India | Banking Law

10/20/10, 7:56 pm

Answer (1 of 1)

write to the Bank that you will be paying the reasonable agreed amount in instalments and your employer is in no way liable to deduct from your salary and pay the Bank.

J. Radhakrishnan

independent Practice

Priya Mahaall, New 27, Old 12/3, Deivasigamani Street

Chennai, NUS 600014

THANKS FOR THE ANSWER, NOW I WANT TO ASK THAT I HAVE ALREADY PAID INR 45000 AS INTEREST APART FROM THE PRINCIPAL, SO WHY THE BANK IS HARASSING ME AGAIN AND AGAIN. ALSO PLEASE ADVISE IF BANK CAN GO LEGAL ON THIS???


Asked on 10/20/10, 10:43 pm

1 Answer from Attorneys
Rashmi Bhatia Sangare Private Practise

Yes, Bank can initiate legal proceedings against you. When you repaid the loan amount, you ought to have insisted for a no dues certificate from the bank. Now, as far as CIBIL is concerned, your credit rating is already in a negative side. You have to consider between civil suit and Banking Ombudsman. Preferably initiate Banking Ombudsman option as it is a consumer friendly remedy. Even after filing complaint before Banking Ombudsman, you can negotiate with bank for settlement.

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Answered on 10/21/10, 12:25 am


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