Legal Question in Banking Law in India

Hi,

I took a loan from citi financial of Rs:65,000 my installment was 2900/- i was paying my loan regularly for almost 1year and after that a guy from citi called me and told your interest rate is increasing.

while taking the loan he told it will be 13% flat interest rate and it will not increase however these guys called me and told it has increased so i stopped paying the loan from past 1year.

Some people were calling me and telling if you want to close through arbitration we can closed it for 42,000,at that time(5month back) i contacted citi financial and they told if you pay the principle amount 54,000 we can close your loan.

Now they have send me a notice in that they say that you need to pay 63,000 with interest and need to meet a lawyer.

MY questions are:-

1) Will they put me in default list.

2) Will i get loan in future if i pay the principle amount.

3) Will they remove my name from Cybil.

4) Do i need to meet the lawyer who has send the notice.

5) If i close for the amount what they say ex: 40000-50000 will that harm me in getting the loan in future

Please help me.

Thanks in advance.


Asked on 9/29/09, 6:12 am

2 Answers from Attorneys
J. Radhakrishnan independent Practice

Instead of putting hypothetical questions, meet the Bank Officials with a representation making an offer to pay the principal amount, explaining your difficult circumstances. If they agree and you pay off, your name will not figure in the CIBIL list . Depending upon your otherwise credit worthiness and the securities you can offer, you may get a fresh loan.

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Answered on 9/30/09, 9:21 am
Seshadri Srinivasan www.lawconcern.com

You have to issue a reply lawyer notice explaining the factual and legal position and asking for a settlement amount and terms. Then proceed accordingly.

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Answered on 10/04/09, 6:26 am


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