Regarding one-time settlement of loan with State Bank of India
I am 73 years old, residing in Kollam. This is regarding my loan account with the State Bank of India, for which I availed a loan of INR 35,00,000 at an interest rate of 12.70% on May 15, 2015.
I have been diligent in making the loan repayments, especially while I was still in employment in Gulf. Following my retirement in the mid of 2016 and the impact of the COVID-19 pandemic during 2020-2022, I faced significant challenges that hindered my ability to make regular payments. Despite my best efforts to catch up on my dues, I have been unable to maintain the repayment schedule.
Additionally, I have noticed that the bank has been increasing the interest rates (rate of interest increased from 12.70% to 16% by June 2024) which has resulted in the escalation of my Equated Monthly Instalment (EMI). While I have made considerable payments towards my loan, the continuous hike in the interest rates has dramatically affected my net outstanding amount, resulting in substantial dues once again.
I sought the help of the SBI top management to consider waiving some interest during the 2022-2023 period. I personally met with AGM, LHO, Trviandrum and AGM, RASMEC, Kottarakkara, and explained my situation. I was informed that there was no possibility of waiving or discounting the interest unless my loan becomes a Non-Performing Asset (NPA).
Since June 2023, my wife and I have been experiencing serious health issues. The sudden decline in my wife’s health led to her immediate hospitalization at KIMS Health, Trivandrum, on June 17, 2023, which turned our lives upside down. She was diagnosed with a stroke, resulting in right hemiplegia and aphasia. She was treated and brought back home in a paralyzed state (whole right body).
On January 1, 2024, I fell and broke my leg, resulting in fractures of both bones in my right leg. I was treated with ORIF (Open Reduction and Internal Fixation) using bridge plating with a lateral tibial locking plate.
Since June 2023, we have been completely dependent on our children for our food and medication. Additionally, they have assisted me in repaying my loan. Overall, I have paid a total of INR 42,45,445 towards my loan as of July 2024.
Recently, I have been receiving frequent visits from bank officials, which creates considerable discomfort for us. They often speak harshly and have threatened me with severe consequences. Despite my several attempts to negotiate a full and final settlement of my loan, the accumulated interest continues to increase my liability further. I am completely confused by the intermittent changes in the interest rate since May 2015 from i.e. from 12.70% to 16%.
I have emailed my situtation to many big shots of SBI including Deputy General managers. I have requested one time settlement. No one has replied to my email so far but some of the SBI representantives often call me and threaten me of legal proceedings.
Kindly advise me a suitable way out.
Asked 3 months ago in Civil Law
