Mortgage loan plus cash credit
Dolly
(Querist) 15 June 2017
This query is : Resolved
My uncle took a mortgage loan of 19.75 lakhs on my property from Deccan Merchants Co-operative bank and my name is put as a guarantor in that. After which he also took a cash credit loan of 38 lakhs, in which i was made the guarantor again and my property was linked to it. Now he is unable to clear the loan. total outstanding amount is around 46 lakhs and bank has asked us to settle the loan. they are not agreeing to do a one time settlement. He has surrendered his FDs and LIC policies already to the bank. So the only asset left with the bank as security is my property.
I would like to know the guidelines for One time settlement for co-operative bank and what should be done in this scenario.
Dr J C Vashista
(Expert) 16 June 2017
You are equally liable to repay the dues.
Dolly
(Querist) 16 June 2017
Thanks for your reply. How can we push the bank for a one time settlement as they are saying they cannot do a one time settlement. What are the RBI guidelines for one time settlement for co-operative banks NPA accounts?
Rajendra K Goyal
(Expert) 16 June 2017
Borrower can not enjoy one time settlement
facility as a matter of right if he is not ready to pay full amount. Bank has to agree for OTS scheme.
Discuss in detail with the concerned Banker.m
Rajendra K Goyal
(Expert) 16 June 2017
Borrower can not enjoy one time settlement
facility as a matter of right if he is not ready to pay full amount. Bank has to agree for OTS scheme.
Discuss in detail with the concerned Banker.m
rajeev sharma
(Expert) 17 June 2017
One time settlement is a prerogative of lender . Borrower can not force lender to make a settlement. There are no universal guidelines of OTS. Every bank has its own policy. As a guarantor you are equally liable to pay loan so sit wit banker and discus the matter with them
krishna mohan
(Expert) 19 June 2017
Well advised by experts as OTS can not be at the option of the borrower. However you can ask for total dues payable including interest as on the date of discharge. If any penalty is included that you can represent to say Chairman of the Cooperative Bank and that may be within their power to waive. Better you try to avoid auction as that may deprive your interest being mortgaged property and work for a win win situation if necessary with the help of a legal counsel specialized on property matters in your area.
