Legal Question in Banking Law in India

Sir,
I am a doctor by profession.In 2007 my younger brother who was then unemployed opted for a loan through Govt. Self employment scheme( Rani Durgawati swarojgar yojna in(MP)for SC/ST community) for a Diary Products shop,For that he puchased machinery of about 3-4 lakhs. He started the shop but unfortunately he died in 2008 at the very young age of 28 yrs. I informed the bank with Death certificate in 2008 only( within a month of that incidence).That time I gave in written that I will pay the standing debt which was around 2.16 L and requested the bank not to add the intert after the date of death. I asked few persons around me about this ,they told me that if I will pay 2.16L then also the bank will catch me for remaining interest.So I backed.The Bank just issued the cheques to the dealers whoes rates were submitted but didn't insurred the machineries and never told anything about it. When I asked the bank to get the machines sold and take thier money back, they refused & even didn't replied my letter telling me that they are asking thier higher official for this case.As long time has passed the bank never even visited the shop and asked for the machine.Now after 4 years they are asking me to pay the debt with interest as guaranter.It is impossible for me to pay that much amount as I myself have my family with 2 child & other resposibilities . Can you plz help me to get ride of this problem legally.I will be very greatful. Dr.Mahant PD.

Asked on 6/15/12, 9:07 am

3 Answers from Attorneys

M.P. SANJAY M.P. SANJAY M/s. Sanjay

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Dr. Mahant

I have gone through your legal problem. As per banking rule if the principal debtor does not pay the loan payment it will fall on the head of gurantors. As you said that you have asked the bank not to add interest. But generally as per banking rules is concern bank will add interest. You could have asked the bank to reduce the interest rate. If you make further delay for making the payment then bank will attach your immovable property. It is better to go to the bank and asked for final settlement. I will suggest you do't belive any body directly approach the bank.

M.P. SANJAY

Advocate

Ph 9392465234

Answered on 6/16/12, 5:44 am

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Pravin Vaidya Independent

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You could have approached Banking Ombudsman office in your area and lodged a complaint against the ny way you may now do so. However please note genuine dues of Bnak will have to be paid. Only you can REQUEST the Bank to reduce/forgo interest and bank can consider as a package under its sole discretion

Answered on 6/24/12, 9:35 pm

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