educational loan
Querist :
Anonymous
(Querist) 30 December 2010
This query is : Resolved
i had completed my MBA. i had taken 4 lacs loan for my studies. now i dont have any job and bank is asking for repayment. i dont have any way to repay it now. but the bank is calling me and telling they will go for legal such as land recovery. but i dont have any land and i dont gave them a documents of land. only thing is my guarantor has signed in some papers what should i do. i can start repaying my loan when i get a job and it will take not more than 2 weeks
A V Vishal
(Expert) 31 December 2010
Generally the terms of the loan repayment is that the installments start after completion of the Course period + 1 year or 6 months after getting job, whichever is earlier.
In your case you have not mentioned when you completed the course.
In order to enforce its rights the banker may issue notice to you and the guarantor, in such case you need to impress upon the banker about the genuinity of your plea. Be advised that the banker can proceed legally against both of you jointly or severally to recover the loan.
abhishek
(Expert) 31 December 2010
Hi,
the bank can recover the amount from your guarantor, its better that you get started the loan as soon as you get job. the recovery procedure of bank will take several months if get started. you have plenty of time for repayment.
H.M.Patnaik
(Expert) 31 December 2010
As advised by Experts, the terms of repayment are indicated by the banker at the time of sanction of loan to which you have agreed along with your Guarrantor.Now, if you have defaulted in the agreed terms , the lender has every legal right for proceeding against you as well as your Guarrantor for recovering the overdue instalments.Better approach the bankers soon after receipt of notice detailing the actual position and arrangements you have made for due discharge of the loan . you must establish your sincerity in repayment of loan. Since it is a Educational loan, the higher authorities will take a lenient view in case there is justified ground for the delay, even the repayment arrangement can be rescheduled.
Advocate. Arunagiri
(Expert) 31 December 2010
It is your duty to repay the loan. What is the terms of loan. if the loan terms says that you can repay the loan after getting the job, you can repay after getting the job.
If otherwise the bank is having all such powers to initiate action against you and your guarantor.
s.subramanian
(Expert) 31 December 2010
I agree with Mr.Vishal. You can submit a memorandum to the banker clearly setting out all your dificulties and seeking time for repaymnet. The banker will certainly oblige.
bhagwat patil
(Expert) 31 December 2010
always get in touch of bank officers in higher level.clearly state your difficulties in WRITING,ther will be way out.
Kirti Kar Tripathi
(Expert) 31 December 2010
i agree with experts, you approach the bank authorities, explain your position in writing, i am sure, they will consider.
AA RAMAKRISHNAN
(Expert) 31 December 2010
Dear Member:
You need not be panicky. No Banker is interested in going for litigation. Their aim is to recover the money. They can wait for an enhanced period of repayment if positive action is taken to show your intention to repay. Please show the steps you have taken so far for getting a job and the plausible date of appointment or any positive convincing steps you have taken in this direction.
Legal aspect of the matter is discussed by experts.
Thanks.
aaramakrishnan
malipeddi jaggarao
(Expert) 31 December 2010
You should have provided the full information as to when you have obtained the loan and when you have completed your course. Normally your father/guardian is co-obligant for education loan. The repayment commences on expiry of course period plus one year repayment holiday (or) 6 months after getting the job which is earlier. What is the duration of course period? I suppose it is two years. Add one year. That means you got 3 years repayment holiday if you obtained the loan at the time of commencement of course. During this period interest is chargeable at simple rate and that accrued interest will be added to principal and accordingly the Bank will fix Equated Monthly Instalments and advise you the amount of EMI and date of commencement. On one hand you say the land will be put to sale, you have not given any land as collateral, and you do not know the position of the guarantor. Since your father is co-obigant, he should have started repayment. If your father repay the interest, and if you did not get the job even expiry of one year after the duration of course, the Bank will agree to reschedule the repayment terms in genuine cases especially in education loans. If you are really hopeful of getting a job in few months, make arrangements to repay the interest portion and represent the Bank for some more time. Constant contact with the Bank is necessary especially in education loans. You have not given the status of your parent/guardian. Since he is a co-obligant he has equal responsibility for repayment the Bank's loan. The argument that you can not repay the loan till you get a job (if at all if you are entertaining such idea) will not hold good. Bank can not wait indefinitely if you do not get the job. The repayment terms in education loan are liberal and one should make use of them so that Banks can execute the scheme in a better way extending these loans to the needy more liberally.
Parthasarathi Loganathan
(Expert) 31 December 2010
There are adequate scope for MBA graduates even in the Banking Industry. You can explore all such employment avenues to settle the loan dues as you have to establish your good intention to repay the loan as far as the bank is concerned.
