Education loan

Arun prakash (Querist) 03 September 2024 This query is : Resolved
I took education loanin IOB in 2012. Now my loan sold to Reliance ARC. Now they threatening like legal action will be taken against me. So is there any rights to take legal action. Bank not informed us my loan will sold to ARC. What they can able to do actually, why I'm asking is to negotiate the loan to repay. That's why.

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If your education loan has been sold to an Asset Reconstruction Company (ARC) and you're facing threats of legal action, it's important to understand your rights. While ARCs can pursue repayment, they cannot legally harass or threaten you. You may have grounds to report harassment to the police. The limitation period for education loans can be complex and depends on factors like the course duration and repayment terms, so it's not a simple three-year calculation. Review your original loan agreement to understand the terms regarding loan transfer.

T. Kalaiselvan, Advocate (Expert) 03 September 2024
Since you have defaulted in loan repayment and this would have become time barred claim, hence the loan was transferred to ARC.
The agencies do not have any rights to threaten you or behave harshly.
You can give a complaint before police for the harassment meted out by them and ask them to proceed legally where you will get time to repay the loan with interest.

SIVARAMAPRASAD KAPPAGANTU (Expert) 04 September 2024
The loan given for Education are agreement based, not pronote based. Therefore calculation of mere 3 years from date of loan cannot be applied to decide limitation as far as Education loans are concerned.

What was the course for which the loan was given to you, what is the duration of the course and what was the repayment holiday given to you. How many instalments you paid so far and when was the last installment paid.

Unless these details are available, limitation cannot be calculated.

And, reagarding loan being taken over by another organization. This must have been covered by the loan agreement signed by you at the time of taking loan. Please verify your records of copies of documents signed by you for the bank loan.

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