It is necessary peruse terms of loan agreement entered into by your friend with bank 

if no payment has been made for period of 11 years claimappears to be barred by limitation 

Dear client, 

The maximum tenure for an education loan is usually 5 to 7 years (including moratorium period). Considering the fact that your friend borrowed less than 4 lakhs and assuming there is no guarantor or security involved, their credit score will decline once they become a defaulter. Additionally, they will be added to the Credit Information Bureau (India) Limited's (CIBIL) list of defaulters. It will ensure that they do not get a loan in the future or until your credit score is good again. As a result, they will find it tough to secure any sort of loan for a considerable amount of time.

Thank you. 

The bank may have obtained the necessary documents from your friend for acknowledging his liability on a continuous basis. Therefore, you cannot assume limitation bar here. Ask your friend to negotiate with the bank for a one-time settlement, explaining his present financial position convincingly. RBI has laid down clear-cut, non-discretionary and non-discriminatory norms governing OTS, especially in the case of PSBs.

He can raise the limitation ground and contest the same. But there years will start from the scheme of the loan and his last payment 

Some banks even provide a relaxation period of 6 months after securing a job or a year after the completion of studies for repayment. The repayment period is generally between 5 and 7 years, but can be extended beyond that as well. During the course period, the bank charges simple interest rate on the loan.

Like all other loans, failing to repay your education loan EMIs on time, leads to several negative repercussions. From a black mark on your credit report to losing your pledged asset, the consequences of not repaying an education loan are many.

The consequences vary based on the amount taken, type of loan, etc

Generally, when the loan amount is small – usually less than Rs. 4 lakhs – the lender sanctions unsecured education loans. When the loan amount is low, the borrower can take an unsecured education loan – without submitting collateral or requiring a co-signer.

If this is the scenario, the lender initially sends you notices when you don’t repay the EMIs on time. If you do not respond, then the lender considers you as a defaulter. Once you have been classified as a defaulter, your credit score starts to fall rapidly. 

When your credit score falls, it becomes challenging for you to secure other loans or credit cards in the future. Unless you repay the outstanding amount and settle all the penalties, your credit score will continue to remain low.

The concept of limitation would come only when you may have to ascertain the facts of signing the loan papers with the conditions for loan.

Hence for now let the lending bank take legal action for recovery by which you will come to know whether it is barred by limitation or still valid.

In any case the lender bank has to follow the due process of law for recovery, if the loan recovery is barred by limitation the bank may not be able to file a money recovery suit

- As per limitation Act, the period of recovery is 3 years from the date of starting the emi , and further from the date of last payment .

- If he has not paid any amount after completing his course i.e. starting the emi , then legally the bank cannot recover the same. 

- Further, as per RBI direction the bank should give property time and facility if the borrower is unable to refund the loan due to sudden loss , unemployment , health issue.