Educational Loan

I availed an educational loan of ₹4,00,000 under the Cent Vidyarthi Scheme from the Central Bank of India for my B.Tech course (2014–2018). The loan was sanctioned based on my admission under the government quota, and as far as I recall, no collateral was provided. However, my father is the co-applicant. My grandfather owns a house, but it was not pledged as security for the loan. Until 2023, I did not receive any communication from the bank regarding repayment. When I was contacted by the bank, I immediately started repaying the EMIs and successfully completed 17 installments. Unfortunately, due to increased financial commitments and a job layoff, I was unable to continue paying on time, leading to the loan being classified as NPA (Non-Performing Asset) in August 2024. Before the loan became an NPA, I had reached out to the bank manager requesting loan restructuring or a settlement to facilitate repayment, but no action was taken. After securing a new job, my financial situation remained challenging, as I am the sole earning member of my family. In January 2025, I received an advocate notice demanding full repayment within 15 days. I responded, explaining my current financial constraints and requested a restructuring plan. However, the bank manager informed me that they are proceeding with a civil suit and insisted on payment within 7 days, failing which I would have to discuss the matter in court. I am deeply concerned about the potential legal consequences and would like to understand: Will the court mandate repayment of the entire outstanding amount in one lump sum?Can the bank take legal action to sell my grandfather’s property to recover the loan?Are there any potential criminal implications for me or my father in this matter? I sincerely seek your guidance on the best course of action to resolve this issue. I am willing to negotiate a feasible repayment plan but need assistance in dealing with the legal implications. Looking forward to your advice.