Legal Question in Banking Law in India

Non payment of loan
My father is a retired person and took a loan of 5 lakhs when he was already retired from HDFC bank. Now he is living only with pension to run his family. It is surely not possible to repay loan amount. Can you please tell me how to handle this situation ? How to defend my father.

Asked on 9/26/08, 9:28 am

4 Answers from Attorneys

Satyajit Patra Satyajit Patra

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Re: Non payment of loan

Please let us know what was the loan for? & how many years back had he taken the loan?

Answered on 9/26/08, 2:49 pm

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Sudershan Goel India Law Offices of Sudershan Goel - Advocate

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Re: Non payment of loan

There is no way to defend a loan except payment as per terms of the loan contract.

Answered on 9/26/08, 11:34 pm

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J. Radhakrishnan independent Practice

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Re: Non payment of loan

You mean to say that your father had taken a loan of Rs.5 Lakhs from HDFC Bank and he is now retired having been left with pension. I assume that he has no property. Or is it that the loan has been taken for house purchase. If it is later HDFC Bank will proceed to take possession of the house under SARFAESI Act. If your father is unable to pay the debt, the better solution is to apply for being adjudged as an insolvent and in those proceedings work out for some structured repayment or if your father has no assets, get a discharge order from court within the time stipulated by it to apply for discharge.

Answered on 9/27/08, 12:51 am

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