19 October 2011
I am not been able to pay back my Education loan. Pls tell which type of legal proceeding can be taken againt me and my father. help please.
19 October 2011
Education loan has long gestation period. The repayment starts from the month when you get a job or one year after completion of the course. Why are not able to pay the instalments? What are the reasons. If you have completed course one year back and till unemployed, you/your father can serve the interest repayment and request the bank to reschedule your repayment showing genuine reasons like incapability of father to repay the instalment and your unemployment. They will certainly reschedule it once you repay the over due interest. The second of the question - the answer is if the default is willful and if any securities are given to the Bank they will take steps to appropriate the securities. If the securities are immovable and mortgaged to the Bank they will take action under SARFAESI Act which gives power to the Bank to sell away the mortgaged property after giving prior notice in the auction. If no security is given, they may file a civil suit for recovery attaching all movable and immovable properties of you and your father (I presume your father is co-borrower or guarantor in the account). After receiving court decree they will file execution petition for sale of movable/immovable properties. If nothing is available, they may even request the court for awarding imprisonment (very rare practically).
What I advise you is, start a personal dialogue with the Bank, repay the overdue interest amount, represent your genuine difficulties asking for reschedulement of instalments, if you have intention to repay the amount. If you want to be wilful defaulter, the Bank will take its actions suggested as above and you will have to defend the same.
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