Legal Question in Credit and Debt Law in India

i took a personal, unsecured loan in July 2005 for an amount of Rs. 50,000.00 with ECS mode of repayment from a private sector bank. I also had to give them undated and blank checks at that time.After 4 months of prompt payments amounting to slightly over Rs10000.00, due to financial problems, i was unable to repay the rest of the amount. End of February 2006, I got a letter (the only communication) from my bank informing me that the payment for the EMI did not go through & I had to pay the amount. At that time, due to severe financial crunch and failing health I was unable to communicate to the bank about my inability to pay them. In the year 2007, I relocated to a new area within the same city where I still reside. The bank had not contacted me any more during my stay in my old house in any way. After I shifted to the new house, due to conitnuing financial constraints, i was unable to contact the bank. Now, after 5 years, the banks have contacted me(I dont know how they managed to get my new address) and informed about my default status & bounced checks status and have threatned me with a 138 warrant( I dont know what that means). I have tried to negotiate a sum with the bank, they are unwilling to negotiate an amount or a means of payment comfortable to me as I have just got a job and trying to straighten my finances. I have expressed my willingness to pay the bank(though not the entire amount) the terms the banks have set now is impossible for me to meet. I would like to know where I legally stand in regards to the loan.

1 Answer from Attorneys

Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in India

Looking for something else?