Regarding education loan

DEAR MR. JINU

                             THIS IS WHAT THE BANKS ARE DOING FOR A VERY LONG PERIOD IN ALL TYPES OF LOANS INCREASING THE RATE OF INTEREST OF THE LOAN BY 2% PENAL INTEREST FROM THE DAY THE LOAN WAS GRANTED WHICH IS AGAINST THE GUIDELINES ISSUED BY THE BANKING CODES AND STANDARDS BOARD OF INDIA . YOUR LOAN MUST HAVE BEEN GRATED AT THE PRIME LENDING RATE OF 9% OR 10% WHICH WAS AT THAT TIME . ON THOSE DAYS ONLY, THE RESERVE BANK OF INDIA WILL FIX THE PRIME LENDING RATES . EDUCATIONAL LOAN IS A PRIORITY SECTOR ADVANCE AND THEREFORE IT MUST MUST BE AT THE PRIME LENDING RATE ONLY . BUT LATER ON RESERVE BANK OF INDIA HAD DE LINKED EVERYTHING AND ALLOWED THE BANKS TO REVISE THE RATES AND THAT IS CALLED BENCH MARK LENDING RATE ( BMLR ) . THIS IS REVISED EVERY QUARTER . AFTER YOU HAVE FINISHED YOUR EDUCATION , THERE WILL BE A HOLIDAY PERIOD OF 6 TO 12 MONTHS FOR STARTING REPAYMENT OF THE LOAN . ON COMPLETION OF YOUR EDUCATION , BANKS WILL COMPOUND THE INTEREST RATES EVERY MONTH WITH THE PRINCIPAL AND INTEREST AS ON THAT DATE . ONLY WHEN THE LOAN BECOMES A NON PERFORMING ASSET , BANKS SHOULD CHARGE 2% PENAL INTEREST FOR THE OUTSTANDING . BUT  BEFORE FILING THE CASE THE BANK WOULD HAVE FIXED THE PRESENT BMLR AND ADDED TO THAT 2% PENAL INTEREST RIGHT FROM THE DAY THE LOAN WAS GRANTED PLUS 6% STAMP DUTY CHARGES PLUS THE ADVOCATE FEES EVERYTHING AND THEREFORE THE DECREE HAD BEEN PASSED FOR 2,70,000.00 [ TWO LAKHS SEVENTY THOUSAND ] . SINCE THE JUDGEMENT HAD BEEN DELIVERED YOU NEED NOT ATTEND THE LOK ADALAT . IF YOU ADMIT TO PAY A CERTAIN AMOUNT IN THE ADALAT , THEN THERE IS NO APPEAL FOR YOU EVEN IN THE SUPREME COURT . NOW TO EXECUTE THE DECREE THE BANK HAD TO FILE AN EXECUTION PETITION FOR WHICH THE BANK HAS A VERY LONG PERIOD TO FILE THE PETITION . NOW BANK WILL NOT FILE THE EXECUTION PETITION TO EXTRACT FROM YOU 2,70,000.00 .                

OUR HONORABLE FINANCE MINISTER HAD GRANTED YOU A BONANZA IN THE RECENT INTERIM BUDGET PRESENTED IN FEBRUARY 2014. FOR THOSE WHO AVAILED THE EDUCATIONAL LOANS PRIOR TO 31ST MARCH 2009 AND THE LOANS ARE OUTSTANDING AS ON 31ST DECEMBER 2013 , THE GOVERNMENT WILL REIMBURSE THE COMPLETE PORTION OF INTEREST AND YOU NEED TO PAY THE PRINCIPLE ONLY . THAT IS YOU HAVE BEEN GRANTED COMPLETE INTEREST WAIVER AND IT IS ENOUGH IF YOU PAY THE PRINCIPLE ONLY . DON'T ATTEND THE ADAALAT OR PUT ANYTHING IN WRITING TO THE BANK . IF THE BANK ASKS YOU TO PAY YOU, INFORM THIS NOT THROUGH PHONE OR BY ANY OTHER FORM BECAUSE BANK HAS TO RECORD EVERYTHING AS PER SUPREME COURT GUIDELINES . YOU SEND SOMEONE AND ASK THEM TO FINALIZE THIS WITH THE MANAGER IN THE BRANCH . BUT DON'T GIVE IN WRITING . YOU ASK THE BRANCH MANAGER TO OFFER YOU THIS FACILITY AND ASK HIM TO PUT IT IN WRITING . THEN YOU ACKNOWLEDGE AND PAY THE DUES TO THE BANK AND GET RID OF THIS PROBLEM . BANKS HAD RECEIVED THE CIRCULAR IN THIS REGARD . WHATEVER YOU HAVE PAID SO FAR , YOU DEDUCT THAT AMOUNT FROM THE PRINCIPLE AND ANY INTEREST YOU HAVE PAID ALREADY . THIS YOU HAVE TO FINALIZE , BEFORE ACKNOWLEDGEMENT OF THE REPAYMENT - JOSEPH WILFRED - 09/03/2014 AT 20.37 HRS  

You cannot escape the bank debt.  They will sell your immovable properties as per the SARFASI Act.

Attend lok adalath and convince them to take only principal amount and waive the interest amount.  Deduct the amount whatever you paid to the Bank.

It is better to appear before the lok adalat, negotiate for a lesser amount, settle the issue once for all so that you do not have to keep lingering about it in the future too.

DEAR MR. RAVINDER / KALAISELVAN

                                                                THE DECREED AMOUNT WAS 2,70,000/- WHERE AS THE LOAN AMOUNT WAS ONLY 86,000/- . THE PERSON IS NOT EVEN AWARE OF THE INTEREST WAIVER GIVEN BY THE GOVERNMENT OF INDIA RECENTLY . IN SUCH A CASE ASKING HIM TO ATTEND THE ADALAT IS INVITING TROUBLE FOR HIMSELF . IN THE ADALAT EVEN ADVOCATES ARE NOT ALLOWED . WHATEVER A PERSON SPEAKS THEIR IS JUST LIKE SPEAKING TO A DEAF PERSON . WHATEVER THE BANK DEMANDS WILL BE RECORDED . HE CANNOT ESCAPE AFTER THAT . IF THE BANK FILES EXECUTION PETITION , THERE THE ADVOCATE CAN FILE THE COUNTER STATEMENT AND REFER THE GOVERNMENT ORDER AND THE AMOUNT PAID BY HIM SO FAR AND PRAY FOR PAYMENT OF THE REMAINING  AMOUNT IN SO MANY INSTALMENTS . THE BANK WILL NOT FILE THE E.P. NOW BECAUSE OF THE GOVERNMENT ORDER . BECAUSE BANKS TRIES TO EXTRACT AS MUCH AS POSSIBLE FROM THE MIDDLE CLASS BORROWERS ONLY WHEREAS THE HIGHER ONES ARE LEFT OUT . TO BE FRANK I WILL TELL YOU AN EXAMPLE FOR THIS . WE AVAILED AN EDUCATIONAL LOAN OF 98,000/-  IN 2009 AND PAID THE INTEREST AMOUNT REGULARLY . AT THE END OF EACH FINANCIAL YEAR WE WILL GET A CERTIFICATE FOR INCOME TAX PURPOSES . IN JUNE 2012 ONLY THE COURSE WAS COMPLETED . THERE IS A HOLIDAY PERIOD OF ONE YEAR . THE INTEREST RATE WAS 10.5 % ONLY AT THE TIME WE EXECUTED THE DOCUMENT  . THAT SHOULD NOT BE HIKED BECAUSE WE ARE MAKING PAYMENT FOR THE INTEREST AMOUNT REGULARLY . THE NEW MANAGER WHO CAME AFTER JUNE 2012 CHANGED THE INTEREST RATE TO 14.5 % FROM THE BEGINING THAT IS ABOVE THE BENCH MARK LENDING RATE . EVEN WHEN WE AVAILED THE 3RD INSTALMENT THE BALANCE OUTSTANDING AT THAT TIME WAS ONLY 98,000/- SINCE WE ARE PAYING THE INTEREST . WHEN WE WANTED TO CLOSE THE ENTIRE LOAN AMOUNT IN ONE SHOT IN THE FIRST WEEK OF DECEMBER 2012, THEY HAVE HIKED THE OUTSTANDING AS 1,07,000/- BY CHANGING THE INTEREST RATE FROM THE YEAR 2009 . EVEN THEN WE PAID IT ONE SHOT AND CLOSED THE LOAN .

          NOW AFTER THE INTEREST WAIVER HAD BEEN ANNOUNCED , I SPOKE TO THE MANAGER TO REFUND THE INTEREST OF APPROXIMATELY 40,000/- WHICH WE HAVE PAID . WHAT HE IS TELLING IS THAT INTEREST WAIVER IS ONLY FOR THOSE LOANS THAT ARE OUTSTANDING AS ON 31ST DECEMBER 2013 . WE CLOSED THE LOAN IN THE FIRST WEEK OF DECEMBER 2012 . IS THIS A PUNISHMENT FOR CLOSING THE LOAN IN ONE SHORT . WE HAVE LOST MORE THAN 40,000/- IN THAT ITSELF .

           REGARDING MR. RAVINDER'S CONTENTION THAT THEY WILL ATTACH THE PROPERTY UNDER SARFAESI ACT IS NOT CORRECT . THAT ACT COMES ONLY WHEN THE BORROWER CREATES A SECURITY INTEREST IN FAVOR OF THE SECURED CREDITOR BY DEPOSIT OF THE TITLE DEEDS OF A MOVABLE PROPERTY FOR AVAILING A LOAN FROM THE BANK . IN THAT ACT THE WORD MORTGAGE WILL NOT COME . EVEN IMMOVABLE PROPERTY CAN BE GIVEN AS SECURITY. 

       IN THIS CASE SINCE THE BORROWER HAD NOT GIVEN ANY PROPERTY FOR AVAILING THE LOAN , THE BANK CANNOT BRING IN THE PROVISIONS OF THE SARFAESI ACT . EVEN IN THE CASE FILED BY THE BANK , THE BANK HAD NOT FILED ANY MISCELLANEOUS PETITION FOR ATTACHMENT AND GET ANY INTERIM INJUNCTION ON ANY PROPERTY. SO IT IS ADVISABLE FOR THE MEMBER TO WAIT TILL THE BANK FILES THE EXECUTION PETITION . BUT SINCE IT WILL TAKE TIME , AS A GOOD CITIZEN , HE CAN SEND SOMEONE TO THE BRANCH AND FINALIZE THE AMOUNT FOR A ONE TIME SETTLEMENT BASED ON THE WAIVER GIVEN BY THE GOVERNMENT OF INDIA - JOSEPH WILFRED - 12/03/2014 AT 00.00 HRS    

in the year 2009 i took educational loan amount of 250000 for engineering studies from indian bank  .i completed my graduation in 2013 .since 2013 i didnt get a job till now .now i got selected in BOB as a clerk .my joining date is 1st july .i will pay my loan amount from july 1st onwards sir .but bank send notice to me to appear infront of  lok adalat for dispute .this will affecct my job ..during police verififcation no cases will there in my names right ?