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Legal action can govt. banks take on default student loan

Jiten Rahul (Designer) (25 Points)

19 March 2014

hi

I had borrowed education loan of Rs 4 Lac in 2007 for pursuing MCA from a Govt. Bank .I belong to a poor family and the bank issued loan for me without any security on behalf of my merit and my father's pension.I completed MCA without any campus recruitment and struggled a lot for a job .Recently my father expired due to high BP.I am the only future of our family and I am doing a job of salary 8 thousands Only.The bank is calling to my family and threatening them .I am ready to repay the loan ,once I will get good salary.
The interest and principal combined amount is Rs 6 Lac now.It will take too time to repay.

Can the bank issue any legal action against me or my family?
Can it send me to jail ?

Please help me.

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4 Replies

Unnikrishnan B (Branch Manager) (740 Points)
Replied 02 April 2014

Hi,

first i would like to inform you that most banks allows concession of interest for prompt payment of interest during the study period .and banks can vary the repayment period from 10 to 15 years .In some exceptional cases.some banks have a scheme of top up/Step up repayment to the loan let me tell u that

first 3 years -repayment as per the present capacity of the borrower.that is 50% of the net income

next 3 years -repayment 60% of the net income available to the borrower

balance EMI is calculated the balance present at the end of 6 years

Kindly contact the branch manager and tell your present situation and convince him to restructure the loan to suit your situation

Another thing if educational loan is outstanding it will be difficult for you to get other loans from banks as PAN is asked every bank for educational loan and loan appears in your CIBIL Report

And it is easy for you to get a good job .be confident!!!!!

Best wishes

1 Like

Jiten Rahul (Designer) (25 Points)
Replied 24 May 2014

hi sir

Thanks for your valuable information.I am very confident and eager to repay the loan .I am working very hard to get a good job.I need some support from bank also to extend my repayment period to atleast 3 years. I have shared my problem with branch manager ,he is asking to settle whole amount within one year ,Otherwise they will file a case against me.Please, give me more clarification about the consequences.While issuing loan the bank,I did n't have PAN card.Now they are asking for my PAN details.Can they really drag me to court or spoil my CIBIL score or attach my salary .Please giude me.

Maryrose Fruge (staff) (25 Points)
Replied 07 June 2014

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