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(Querist) 22 June 2009 This query is : Resolved 
Respected members
I borrowed Rs. 50000/-against my property from co-op. bank in 1995,no any instalment was deposited by me,now i want to repay the loan amount alongwith reasonable interest i.e. 20000/- or 25000/- Rs. but bank officers are demanding 150000/- Rs. that is very excessive,but i want to clear my account/loan but bank is not giving any concession to me,i have listen that bank can not demand the interest amount more than principal amount,is it right,can i file any civil case in this regard for depositing and clear my loan.Plz help
A V Vishal (Expert) 22 June 2009
Dear Vinod

It is apparent from the query that u have defaulted the loan since 1995, what makes you to think that interest of 25,000 is reasonable for a loan of 50,000 which has been defaulted for the last 14 years. Moreover, you are aware of the interest and penalties for default. Moreover you have mortgaged your property, the bank can proceed legally under securitisation act. Advise you to strike a settlement and close the matter once for all.
Y V Vishweshwar Rao (Expert) 23 June 2009
I agree with Mr Vishal opinion

For all Co- Operative Agri Loans there is a Scheme ( In Ap so far I Know ) but Your loan appears to be not Agri Loan . The Loan agrement terms will have to be considered and the Loan account to be settled under Govt Co- Op Bnaks Schems, if any in your state , for recovery of Loan . The Duoble Interest principle not applicable in your case
sanjeev murthy desai (Expert) 23 June 2009
Yes i supporting Mr. Vishal and Mr. YVV Rao
Swami Sadashiva Brahmendra Sar (Expert) 23 June 2009
you may try to take a direction from the court on the basis of Rule of "Damdupat". according to this rule interest more than principal amount can not be charged at a time. this rule is seldom used and often misinterpreted by ignoring the words "at a time". pls note it bars demand at one time and not forever.

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