Legal Question in Banking Law in India

Hi sir,

I am an Indian citizen.I applied for an education loan to a nationalized bank for 1,40,000 in 2004 for my engineering studies. They sanctioned the loan for a year of 2004 to 2008 educational period. For security they took my mom and dad signs as Co-obligation for this loan. Every year starting from 2004 , they sanctioned 25,000 rupees as annual fee up to 4 years(i.e. up to my final year 2008) and extra 40,000 rupees as fund for computer & travelling charges. I didn't got any job from 2008 to now also. So, i couldn't pay my EMI's yet. I will pay my loan , once i get job. I want to know, will the bank provide me the required time? Or it will take any action against me or my parents? What do the banks do when any customer is unable to pay education loan? Even my dad's salary is in attachment to personal loan in another bank. He is getting only 1/4 th of his salary amount. We don't have any other income yet. I don't want to be a burden for them. I will pay the loan once i get job. But, in advance i want to know everything about any legal action/ proceedings will be taken by the bank if any? Your valuable reply guide me for my and my parents better future.Thank you, sir, in advance.


Asked on 6/25/11, 2:28 am

2 Answers from Attorneys
Professor SOMNATH MUKHERJEE MUKHERJEE ASSOCIATES(Cell +91 9874753359/ 9477781578)

you if you fails to pay then the bank will attach your father and mother salary

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Answered on 6/25/11, 9:43 am
Pravin Vaidya Independent

Please explain to the bank, the circumstances under which you are not in a position to repay the loan and seek some more time. Submit your time-bound plan to repay the dues and if possible offer some immoveable property as collateral security.

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Answered on 6/28/11, 8:03 am


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