Education loan
Abhishek Raorane
(Querist) 29 June 2014
This query is : Resolved
Hi, I have finished MBA from Coventry university London Campus from united Kingdom. i have taken education loan from state bank of India in January 2011 7 lac 40 thousand. the time i have taken loan i was not present in India. I have finished my course in November 2012 till date that is from January 2011 till November 2012 we did not receive any call neither any legal notice from bank regarding interest charges. Suddenly, in March 2013 during closure of year ending we have received call from the bank that interest rates has already been started and we need to start paying it immediately. We paid initial amount of 25,000 as requested by the bank. Since i was jobless for almost 8 months i couldn't pay anything. I also requested bank authorities to reduce EMI or interest charges, they were not ready to help. There behavior was very rude and helpless. now, when i got job in December 2012 I started paying EMI regularly. Suddenly we received letter from the bank stating that your education loan account is irregular, you need to pay Rs. 2,55,788/- to make it regular. We went to discuss the same with higher authorities they informed we have to pay minimum Rs. 1,75,000/- for settlement. My mom is single parent we cannot afford so much of money. We get many harassment calls from the bank everyday. Instead of requesting them they are not ready to help us. I have also informed that we will pay regularly EMI made ESN with salary A/C for education loan but they are asking us to pay Rs. 9,50,0000/- in total. Please Help.
Rajendra K Goyal
(Expert) 30 June 2014
You said, you were not present when loan was disbursed, Do you mean you did not signed the documents and your signatures are fraud, and the Bank people has embezzled the loan money? Bad Excuse for your own fault of non payment.
Bank start charging interest from the day any amount was withdrawn. You did not served the interest to the Bank during your studies or even after studies. Bank has given loan for your studies, as per agreement you should start paying back as from decided date after studies, you did not paid back, you have excuse, you were not employed.
Bank has to keep its NPA low, the manager has to show his performance being this as a major criteria, Bank has to show low NPA to its stake holders, they are justified in calling you again and again. You have not kept your promises done in writing as agreement to Bank. You can not blame others for your fault.
Better try to regularize the account as soon as possible.
ajay sethi
(Expert) 30 June 2014
express your inability to pay sum of Rs 9,50,000 demanded . let bank file recovery proceedings . in proceedings taken by bank make application for OTS .
malipeddi jaggarao
(Expert) 30 June 2014
How the Bank could sanction loan to you without obtaining documents like D.P.Note etc. Have they sent the documents for your signature abroad?
The loan is granted for studies abroad. The Bank might have given you or your representative sanctioned letter wherein the sanctioned terms would be elucidated.
Your EMI will start immediately after finishing the course if you got the employment or after 3/6months moratorium period even if you do not get the job. You have finished course in Nov.2011 so the Bank is right to keep quite till such time and started following-up for recovery in March 2012. What is wrong in it.
You have paid only Rs.25000 and kept mum for 8 months on the pretext that you were jobless.
Nobody can ensure employment and can wait till you get the job. The moratorium is fixed to take care of such eventualities for a short time. After that it is for you to manage the repayment. When the Bank could support a person for higher education, it is the duty of the student or his parents at least to repay the installments regularly irrespective of the fact that the student gets a job or not.
You are telling total Rs.9.50 lakhs - that the total repayment. If want one time settlement, you are required to pay that amount. If you wish to pay by EMI, pay all the EMIs due till date and from next month start paying EMI.
You have borrowed 7.50 lakhs in January 2011. Already 4 years overs. Even the term deposit if you keep this 7.50 lakhs it would be more than 9.50 lakhs.
Education loan is a social measure and the scheme is designed by IBA and Government of India extending financial assistance to the needy students whose parents could not afford to provide higher education though the children are meritorious. As interest is the lowest, there will not be further concessions.
Hence my suggestion is instead of trying find fault with the Bank or somebody, pleadings like your mother is single parent, you did not get job immediately after studies, it is better to clear the overdue EMIs by paying one time and henceforth stick to the repayment schedule. If you have any genuine difficulties like ill-health, sudden termination of job etc., you can request the bank to reschedule your EMI.
T. Kalaiselvan, Advocate
(Expert) 01 July 2014
The views expressed by Mr. Ajay Sethi sounds meaningful, you may follow his advise.
