Hi, I have taken education loan of 2 lakhs from bank for the period 2008 - 2012. I didn't start the repayment as i didn't get any job. My loan went in NPA- Non profitable assets as per bank policies.
The bank forces me to take OTS - one time settlement of 2.5 lakhs (Total out standing 3 lakhs)
My friend who have the same situation told the bank that they are not going to pay.. He is telling me that bank will write off the education loan after some time, so he is not going to pay.
I am in dilemma for whether to pay (borrowing from private lenders) or do like him.
My questions are,
1. if i don't repay the loan what will happen?
2. My friend told that he didn't give his PAN card details and their family moved to some other town totally., so bank people cant go and ask in his current plan. Is this true? can he escape from repaying education loan?
3. What is the actual procedure of recovering education loan when we don't provide any security?
4. I asked for some more time as holiday period as i can pay after some time when i get a job, but the are demanding OTS asap. what can i do in this situation?
5. y financial situation is too bad, what should i do in this?