Banking

khalid jaffrey (Querist) 11 May 2014 This query is : Resolved
Dear Members,
Please help me with a little query--
one of my friend took educational loan of rupees 200000 from syndicate bank in the year 2009 for pursuing B.tech. unfortunately he did not get a decent employment till now.A week back from now he received a notice from bank to repay the loan amount, along with arrears at the rate of 2% within seven days.This is the first notice that he has received from the bank demanding repayment of loan. my question is-
1.can he buy some more time from the bank to pay the amount?
2.can he apply for exemption regarding payment of interest & arrears?
3.what legal steps can bank initiate after serving the notice & the legal remedies available to my friend.

Best,

Khalid jaffrey,
Advocate.

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ajay sethi (Expert) 11 May 2014
make application to bank for rescheduling of loan . reduce the amount of EMI payable as borrower does not have decent job as on date .

R.V.RAO (Expert) 12 May 2014
yes,he can ask for more time to repay the principal loan, after explaining his present financial position in writing.he must first meet the lending banker ,in person to explain the circumstances which led to present position.if the banker is satisfied, then the bank may reschedule loan outstanding to a future date.first the bank should be satisfied with the borrower's actual state of affairs, before doing any required hep .
he can also ask for remission /waiver of interest in full or in part.
if the bank insists some part payment, before recommending the case to their superiors,he may arrange same to the possible extent.
if any security is given to the bank , for the loan or any collateral is offered to secure the loan, the bank may be forced to encash or invoke the same to liquidate the over dues.
bank's main worry is the loan should not be a bad asset(NPA) in their books.that is why the borrower should comfort the bank , with his positive actions and convince banker about his sincerity of purpose and honest efforts for repayment as early as possible.

Rajendra K Goyal (Expert) 12 May 2014
You may apply to the Bank for rescheduling of the EMI, partly or fully waiving of the interest. The decision depends upon the Bank to which extent it want to use its discretion.

Meanwhile approach the Bank to pay some money in the account.