Hi, You can not ignore legal notice. Receive the legal notice and understand it. Banker can initiate criminal action also for non-payment of loan. You can get back to us with legal notice.
Thanks,
Adv.Niranjan,
Mobile - .
Education loan
Sir, I got education loan from SBM (SBI) Oct 2012. And after that I'm jobless and I'm preparing for exams in government sector. Sometimes bank staff are came to my house at native. They are asking for the recovery. After that last month I went to bank I requested to manager that I will start payment every month without fail because recently I got job in Bangalore (private sector) but he said your recovery time is already over and you need to pay immediately as total outstanding. 2days back I got phone call from postman his saying it's legal notice from advocate. I didn't get the notice because they want to my signature. Please advise me what I can do. -Shankar
Asked 8 years ago in Civil Law
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7 Answers
1. There is no harm in receiving the notice issued by the lawyer of the bank. Accept the notice and reply to it through your lawyer.
2. Since you have defaulted in payment of EMIs the bank will not settle for anything less than a lumpsum payment of the outstanding amount. If the bank files a civil suit then you can request the court to refer the matter to Lok Adalat for mediation.
you should receive the notice and submit your detailed reply
2) seek time to pay the loan .
3) mention you were jobless and hence not in position to repay the loan
4) seek rescheduling of loan
It is your duty to receive the notice and reply to it through your lawyer if needed.
Banks extend loans based on the capacity to repay. This is usually based on the employment potential of the student after completion of the course. You have to comply with the loan agreement.So you must pay back your student loan even if you do not graduate, you do not get a job or your education did not meet your expectation.Other wise bank will move to the court and attach property for realisation money.
You must request your bank to extend the tenure (time of repayment) of your education loan. You can negotiate with your bank to pay only simple interest on your education loan until you find a suitable job.Also seek rescheduling of loan or extent the time.
-Sooner of later you have to repay the loan because it was public money which was lent to you by the Bank.
-Ask you bank to extend the time for repayment of loan.
-In case, they've sent you the legal notice, it means that the bank is taking a legal recourse in the matter.
-Send a reply to their legal notice, requesting them to give an extended window for repayment of loan.
-Explain clearly in this reply the difficult situation you are going through. Assure the bank of repayment provided yu are extended some extra time.
It becomes your duty to repay the loan since you have availed it for some purpose during the time when you were not able to afford that amount required for your education.
You may once again contact the bank manager and request for restructuring the loan and allow you to repay the same every month.
If he is not listening, let the bank approach court with a suit for recovery of money, you can inform court that you are ready to repay the same on installments, the court may permit you to do so, but that will include the delay interests too.
You receive the legal notice and send a reply to the same otherwise they will initiate the process of recovery without your notice which will become a headache for you. If you will send a reply to the notice it will be a good reason for you to defend the case also if the bank proceeds to file recovery proceedings.
Regards
