Hi I have taken loan of rs 5 lacs frm co-operative credit soc. In January 2016 for 36 months with an monthly emi. Since I have paid 6 emis out of them. But from JULY 2016 to till date I m unable to pay any amt. To the credit soc. In last 12 months I m in huge loss and can't pay my debts currently.
Soc. Is demanding money and they have sent legal notice under sec. 101 to me and my 2 guarantors . Due to very huge loss in mkt. And no income since last 12 months I m unable to pay my debts. I also don't have any property or asset with me.
One more thing I was taking loan since 2003 from this credit soc. Regularly and I have fully paid them before time without any default in last 13-14 years. Every time I have taken loan. But this time due to loss in business and no proper job or any source of income I m unable to pay them.
So plz suggest what should I do and what is section 101 notice procedure. Plz reply urgently.
Your bad financial position does not absolve you from your liability to repay the loan in terms of agreement. You may discuss with the bank asking for some concession. Bank has power to proceed under SARFAESI Act