Legal Question in Banking Law in India

Disability unable to repay the loan.

Hello. Recently my uncle had brain stroke due to this he has been permanently disabled. He is out of employment and there is no income further. But he is having Housing loan in one private bank. And now my question is As he doesnt hold any income in future due to disability caused will there be any exemptions or reliefs towards the monthly EMI or on a total amount.


Asked on 3/06/09, 12:56 am

4 Answers from Attorneys
J. Radhakrishnan independent Practice

Re: Disability unable to repay the loan.

while we pity about the condition of your uncle, no relief can be claimed in respect of him towards repayment of the loan. Anyhow, make an appeal to the Bank for some relief. It is upto the Bank to show sympathy. No use in writing to this forum.

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Answered on 3/06/09, 1:23 am
Pranav Desai PD Legal & Associates

Re: Disability unable to repay the loan.

Unfortunately, no relief or exemptions are granted. You may consider requesting the bank to reschedule the same or reduce the rate of interest.

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Answered on 3/08/09, 12:23 pm
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: Disability unable to repay the loan.

In case of NPA accounts, there may be some relief, if any, announced by RBI.

Since the loan in your case is secured - backed by mortgage of property, the bank may be entitlted to recover the loan from sale of mortgaged property.

You may consider filing for bankruptcy. The court may allow you to live in the house till the case is pending final decision about insolvency.

You may also examine about 'insurance', if any, available with the loanee with regard to payment of loan amount.

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Answered on 3/06/09, 8:08 am
Aniruddha Pawse Aniruddha.P.Pawse Advocates

Re: Disability unable to repay the loan.

depending on circumstances get him declare as an insolvent.

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Answered on 3/09/09, 5:21 am


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