Legal Question in Credit and Debt Law in India

Re: Unable to repay personal loan

You arwe request to file a suit for declaration ofaccount and injunction.

Re: Unable to repay personal loan

Sir,

Please note that, you should have signed the Terms and Conditions for obtaining the personal loan from the bank. Please go through the same and find if any defualt clause is stated for you rescue. If you would like to pay the money you seek for the time for payment, then you may preclose the loan account and try to negotiate for easy installments where you can pay.

Further, I wish to state that you have not cheated but are not able to pay the same, this does not attract Sec.420 of IPC. The only remedy by the bank is to file a Civil Suit and claim the money from you with interest.

With regards,

E.VENKATESH BABU

ADVOCATE, CHENNAI

Re: Unable to repay personal loan

For default of the loan, the bank can only file a suit for recovery. A 420 criminal case would not be attracted.

In case you feel that you can come out of your losses and repay the loan amount, there is no harm in defaulting as ultimately even if a suit for recovery is filed and a judgment granted in favour of the bank, the entire process would take some time. However if you feel that you cannot repay the loan at any rate, you have the option of filing an insolvency petition.

Re: Unable to repay personal loan

Your statement is incomplete.

It is possible that he has threatned you 420 because you might have issued advance cheques.

They are entitled to recover your loan and you may have no escape but to settle your liability.