Education loan
UNNIKRISHNAN
(Querist) 23 January 2014
This query is : Resolved
Sir,
My wife have taken education loan from SBT. She took this for her BSc. Nursing Course (2003 - 07). She had secured 75% marks in Plus Two. Loan amount is 3.45 Laks. The bank authorities have took our property documents for sanctioning loan. Till Sept – 13 we had remitted 1.7 laks in bank. One day bank authorities came to the home and said that they will settle the loan if we pay 5 laks. We did not ask for one time settlement. The branch officials directly contacted us for the settlement. Thus we have remitted 5 laks by pledging her ornaments and from taking loan. Bank said that to come in adalath on 09.09.13 for finalization. But in the adalath they said that we have to remit 1.2 lak more for settlement because they have our land documents. (As per our govt. norms NO GUARANTY NEED FOR EDUCATION LOAN TILL 4 LAKS). And also they said that if they sell our 6 cent of land they will get the double money than our dues. The same bank released the land properties of loan holders in past due to the agitation form the holders association. They now said that why we not took our documents in that days. They said that if we fail to pay this amount before 31.01.14, the bank will proceed with the recovery. Till now we have remitted Rs. 6.7 lac(1.7 + 5) for my 3.45 laks education loan. The bank authorities also agreed that there is no other loan holders are remitted this much amount in education loan in the same bank. We think that this is clearly a cheating from the Branch authorities because with 5 lacs they have assured that they will surely close the loan. In past 2 months so many times we got call from bank that we have to pay the amount before 31.01.2014. Otherwise bank will go for further proceedings. What can I do in this matter.
ajay sethi
(Expert) 23 January 2014
please note that loan amount of Rs 3.45 lakhs has to be rapid with interest . you must be receiving annual bank statement for your loan amount . what is total amount outstanding as on date ? did bank send you any letter of one time settlement that if you paid Rs 5 lakhs loan will be closed . please clarify . if bank has not done so you have to pay total outstanding dues as on date
Rajendra K Goyal
(Expert) 23 January 2014
Agree with the expert, if the Bank has not conveyed its intention to settle under One Time Settlement at 5 lacs you should not have remitted the amount. Now the Bank is at upper hand.
You may meet higher officials of the Bank, possibly you may get some relief.
V R SHROFF
(Expert) 23 January 2014
Clarify with Bank official and close the chapter by paying any agreed amount.
UNNIKRISHNAN
(Querist) 23 January 2014
We did not get any letter for OTS. They directly came to our home and discussed this matter. Our balance before settlement is Rs.7.05lacs. Today they said that the settlement criteria is Principle + 50% of the interest. Our Principle is 3.45 lacs. As per the calculation on existing balance is Rs. 5.25 lacs. But during the settlement they said that The amount is Rs.6.2lacs. How it happen? Today again I contacted with the regional officer about this unclear calculation. Now they are telling that They have added an additional Rs. 70000 as reversal interest (I am not clear about the term). But this interest is not in our statement till now. If we adding 50% that amount to the settlement, It is only Rs. 5.6 Lacs. Pls give me your opinion. I am ready to share the statement also.
UNNIKRISHNAN
(Querist) 23 January 2014
Just now I have confirmed one more thing. They have calculated compound interest during the entire period of the loan. I think simple interest have to be calculated during the moratorium period (from Oct 2003 to Mar 2008).
ajay sethi
(Expert) 24 January 2014
you have not received any letter for OTS . balance amount before settlement is RS 7.05 lakhs . you have paid Rs 5 lakhs after oral talks . balance would be Rs 2.05 lakhs . bank want additional 1.25 lakhs . your property is mortgaged to bank . pay them amount of rs 1. 25 lakhs claimed and close the chapter
krishna mohan
(Expert) 24 January 2014
You demand for detailed account statement, verify and pay dues as per loan agreement. If bank is demanding more than what is in the agreement you can complain to Ombudsman detailing the additional claim and seek for refund. Now your land is mortgaged better to settle under protest and approach Ombudsman. Also check whether the period is exceeds the agreement period and that is reason why they are asking for one time settlement.
Guest
(Expert) 25 January 2014
Most probably, you are the target of some recovery agents on behalf of the bank, who are interested more on earning their commission and had been acting only on the direction of those agents in connivance with some dishonest bank officials.
So, instead of going on hit & trial basis, you need to review the case in entirety.
For that purpose, you may --
1) Check whether the property was duly mortgaged, or simply copy of the proerty documents were handed over to the bank;
2) Ask for the calculation cum debit/credit & balance statement on quarter to quarter/ annual basis of the loan account from beginning till date;
3) Copy of agreement with bank;
4) Copy of the bank's education loan rules/policy; and
5) personally check the calculations of the bank as per the education loan policy or get the documents reviewed from some expert locally to guide you properly to tackle with the problem.
malipeddi jaggarao
(Expert) 27 January 2014
I agree with the advice of Mr.Dhingra.
I would like to throw more light as follows:
You have taken education loan in 2003. Even in the case of Bank deposits, the amount will be double within seven and half-years. 2. Since there is default, the Bank might have treated your account as Non-Performing Asset. In such case they can not post the entry of interest directly in your loan account. They will post the entry only at the time of repayment of full settlement. The Rs.70000 in question is reversal interest on receiving the repayment. You can not dispute that.
3. The Bank might have given you sanction letter wherein the terms will be specified for charging interest. Normally, the interest is to be paid as and when applied. Simple interest is normally applicable till the completion of course or till the end of gestation period.
4. You can recalculate the interest and if any dispute, go with calculations and resolve the issue with the Branch Manager.
5. When you could pay Rs.5 lakhs in one shot, why you defaulted the loan instalments? Your plea that others have not paid etc., are not tenable. It is public money and education loan scheme facilitates merit students to pursue their higher studies. When you have availed the loan, completed the course, got the employment what prevented you to repay the loan amount.
6. However, as you say, the Bank officials have approached you with OTS, you can go to the person who assured you, and have a talk with the Branch Manager along with him. If he denies, you have no option except to recalculate the interest and ask for adjustment and pay the remaining balance, especially if your property is taken as mortgage.
UNNIKRISHNAN
(Querist) 08 April 2014
Thanks for all your advices, especially Mohan Sir. We have approached the banking ombudsman. Finally we got a favorable decision from Ombudsman. BO ordered to the bank that immediately release the property documents and repay the excess interest received. So the bank officials called us to collect the documents immediately. And also they have closed our education loan without paying a single money. Many many thanks to all....................
krishna mohan
(Expert) 08 April 2014
I am really happy to note the positive out come after approaching Ombudsman based on our advise. Have a peaceful time and all the best.
Guest
(Expert) 08 April 2014
Best of luck!
malipeddi jaggarao
(Expert) 10 April 2014
Best of luck. Positive and immediate outcome from the advice of this forum.
T. Kalaiselvan, Advocate
(Expert) 25 January 2014
