Legal Question in Credit and Debt Law in India

Repayment of personal loan

I dont have money to repay personal loan taken. What is the legal step that the bank can take against me. I am uncontactable by the bank as well as I am not residing at the same place as I was when I took the loan more than a year ago. Can I just ignore it, or settle for a lesser lumpsum amount to settle the account? What about this loan is on a credit card or an outstanding balance on a credit card?


Asked on 1/30/09, 5:53 am

2 Answers from Attorneys
Homi Maratha N.N. Maratha & Co.-Advocates

Re: Repayment of personal loan

Hello.

First of all it seems you dont want to repay the amount.

Make up your mind then escaping from the fact.

You may contact the Bank authorities and might be they help you out.

The Bank with the help of court can issue a summons or an arrest warrant.

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Answered on 1/30/09, 5:58 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: Repayment of personal loan

You may neither ignore your liability nor may settle for a lesser amount as a matter of right.

The bank may take harsher steps and may effect recovery by auction of your assets / property after obtaining court order.

The bank may also debit all the expenses that may be incurred on litigation.

It may be better for you to contact the bank and reach an amicable settlement about payment of the loan amount as soon as possible.

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Answered on 1/30/09, 10:20 am


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