Educational loan
nitya chandra
(Querist) 14 September 2014
This query is : Resolved
Respected Sirs,
There is a Educational loan in the name of my brother for his btech. He has completed his graduation this year itself. Fees of only IInd year and IIIrd year was paid through the loan. Whereas the fees of Ist yr and IVth year was paid by the father. How to claim deduction of those amount which was not used to pay the fees? He does not have any papers related with the loan, not even passbook of the respective bank account. All the documents are kept by the father. He has denied to pay the loan as well as have denied to give the legal documents. (our father has his separate living.)
What are the grounds on the basis of which it becomes the duty of Co-Obligant (father) to pay off the Educational Loan? Note-1) The person on whose name load has been taken is not having any job yet and preparing for further studies.
2) Co-Obligant is father.
3) Father has good income.
4) He has bank account of his firm in the same bank (same branch too) with transactions in lakhs.
Please guide what should my brother do.
Kumar Doab
(Expert) 14 September 2014
Banks are required to give authenticated copies of documents executed by you free of charge. (cf. para 8.11.1 of Code of bank’s Commitment to Customers)
e.g;
• letter of offer
• copy of filled in loan application
• copy of loan agreement
• terms and conditions governing the housing loan
• other documents such as schedule of fees and charges
Default is not recommended........................the deliquency may remain in credit history and lenders study it carefully.
In case of default bank shall approach Co-Obligant.
Your father is giving good business to bank and BM may favor him...............
Better pusuade with father to help his son.
ajay sethi
(Expert) 15 September 2014
your brother is entitled to bank statement of amount due under loan . bank will furnish you a copy . if your brother dosent have job request father to repay loan . if your brother defaults bank will take recovery proceedings against father and son
Rajendra K Goyal
(Expert) 15 September 2014
1. Your brother is entitled and ask for the copy of account statement.
2. Bank can debit only the amount disbursed and charges, interest from the account, not disbursed portion is not to be debited.
3. Bank is not concerned with the income after completing of the studies, it has to be paid as agreed.
4. If the principal borrower is not repaying, Bank may proceed against the borrower and the co obligant.
nitya chandra
(Querist) 16 September 2014
Thank You Sirs. Your suggestions cleared a lot of doubts in my mind.
But what about the deductions (part of loan does not used to pay fees)? Does bank mentions the deductions by themselves?
And father does not gives us even rs50 for our basic neeeds including food. Asking him to pay the loan will be just like begging with zero result.
T. Kalaiselvan, Advocate
(Expert) 21 September 2014
If your brother is not able to repay the loan, the bank as a next step will approach your father being a co-applicant, he cannot claim innocence or request to exclude him from it, he has to oblige or the bank will initiate legal action against him.
