Ria maliakkal (Na) 27 July 2019

Education loan turned npa repayment extension/reschedule

Hi, I had taken a education loan in 2011 from a private bank, and completed my engineering in 2015. Due to some family situations I wasn't able to go for a job and till now I didn't got a Decent job. The last payment was on 2017, and the loan turned into NPA. I got the mail from bank and I convinced them by informing my situation. Now in 2019, I got a mail regarding account linking, and I went there and they almost treated me like I was about to run away without paying their amount. I told them I will pay the amount within 3 years. But the new manager is not willing to hear, and he zaid they need to settle the the amount by OTS. Otherwise they will move to legal procedure. I know its my fault, but all I want is to get some extra time to pay the amount. I discussed with a bank employee regarding the same and he told to me that, he faced the same situation and he sent a registered mail explained his current financial sutuation and he got it rescheduled and extended for 5 years. Now it has been only 3 years. Is there any ways to get rescheduled the loan? If it's possible, it will be helpful for me to share the format of the application and the list of documents to be enclosed? Thanks in advance.

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3 Replies

jayakumar.j (advocate) 27 July 2019

Contact the banker. Nothing is impossible.

G.L.N. Prasad (Retired employee.) 28 July 2019

You can write a letter proposing for rescheduling the loan to a superior officer over the Bank and take a chance. You have to explain the reasons specifically of your inability to pay the loan and as to your proposed plan and the assets you are having. They may consider in all genuine cases. Even if Bankers go to court, there is no further harm to you as you can state the same thing before Lokadalat and it takes years to get a decision. If you have offered any type of security, then Bank is having such powers of taking possession of the property offered as security. The moment they have treated it as NPA your financial career came to an end as it is not possible for you to raise single rupee as a loan or credit from any financial institution with such CIBIL rating and branding as a defaulter.

Sudhir Kumar, Advocate (Advocate) 06 August 2019

actualy bank is not to blame if you couldnot get the salary as you expected from the course.

The bank may not be interested in delaying legal procedure to the extent that the recovery becomes time barred. prudently they should initiate proceedings now. You can just put before court that you are not pleading lack of limitation if the bank extends payiment schedule os that bank is cleared off the fear of limitation and is not compellled to start proceedings immediately.