Legal Question in Banking Law in India

loan on creditcard

I had taken loan of 5 lakhs over phone on my credit card & later personal loan of Rs.2 lakhs from same back.I was regularly repaying EMIS till 3 months back.Due to econimic crisis ,now I am unable to pay my EMIS.I have requested authorities for settlement which they are not agreeing & threatening me for recovery.Please guide for course of action


Asked on 11/14/08, 4:20 am

3 Answers from Attorneys
Aniruddha Pawse Aniruddha.P.Pawse Advocates

Re: loan on creditcard

Ask time to repay the loan and if you think you cannot file insolvency petition.

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Answered on 11/14/08, 9:43 pm
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: loan on creditcard

It is not clear what "settlement" you have requested. They are entitled to recover the loan amount in terms of the agreement executed by you.

If you do not have the capacity to pay, you may consider filing an insolvency petition.

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Answered on 11/14/08, 7:39 am
Nasir Butt Nasir Law Associates

Re: loan on creditcard

If the settlement means rescheduling the loan, authorities must realize it, otherwise the term "settlement" must be clearly mentioned. Bank has right to recover the loan. Keep in mind insolvency petition may harm. It is also notable, insolvency against Banks is not permissible under law and will be dismissed, if filed.

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Answered on 11/14/08, 11:21 am


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