Legal Question in Banking Law in India

how terms and conditions of loan are governed ?

higher education loan applied - many papers/forms etc.filled - many terms and conditions discussed - mentioned/signed/supporting papers for income etc.submitted - finally a final SANCTION LETTER was issued by the bank stating all the terms and conditions - and was acted upon for all the loan purposes - is this sanction letter terms and conditions final ? whether in-between agreed and modified terms may be applicable ? does this sanction letter happen to be the final loan offer and loan acceptance to be treated ? kindly confirm.

this final sanction letter also has signatures of all the applicants and the guarantors, whereas initial supportings does not have all the signatures of all the applicants/guarantors, but do have of individual parties. kindly clarify.


Asked on 6/21/09, 12:20 am

4 Answers from Attorneys
J. Radhakrishnan independent Practice

Re: how terms and conditions of loan are governed ?

A final sanction letter signed by the applicants and their guarantors is final. Of course, the same can be modified. It has also to be read with the loan documents taken by the Bank after the sanction letter. Ultimately the loan documents signed by applicants and guarantors would govern their rights and liabilities. The same can be modified by supplemental documentation signed by all parties to the loan documents.

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Answered on 6/21/09, 12:24 pm
Rohini Kumar Tenneti R.K.1080 LEGAL SERVICES

Re: how terms and conditions of loan are governed ?

If a bank or any nbfc sanctioned any educational loan or for that matter any sort of loan will be bound on by rules framed by the bank/nbfc and agreed by the parties and duly signed by the applicants is final.If any dispute arises after the grant of loan and the bank poses any new rules are not valid and you may approach the banking Ombudsman of where the bank jurisdiction lies.

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Answered on 6/22/09, 4:01 am
Pranav Desai PD Legal & Associates

Re: how terms and conditions of loan are governed ?

Final sanction letter will be considered to be the final loan offer and acceptance.

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Answered on 6/22/09, 6:00 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: how terms and conditions of loan are governed ?

There are no legal issues involved in your statement.

The terms and conditions of a loan depends upon mutual agreements and about finality of sanction, you may ask the lending institution concerned.

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Answered on 6/21/09, 3:36 am


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