Recovery of loans by banks
CA SUKESH BHATIA
(Querist) 24 May 2014
This query is : Resolved
Dear Learned Sirs,
I am a fresh Chartered Accountant who took 3 personal loans from 3 different banks in the year 2013.
My total EMI is Rs. 42,000 p.m. which I was paying for last 9-10 months. But as of now I have incurred a loss of about 19,00,000 rupees in my business and profession. Now, I am totally unable to repay dues to the bank. The bank officers has been continuously calling me, trespassing my office, visiting my house almost on daily basis. They are putting intense pressure on me.
What is the remedy available to me in case my requirements are as follows:-
1. I do not want to be harassed by banks in such a manner.
2. I need at least 12 months cooling period in which I need not to pay any money so that I can properly setup my newly started profession.
Regards
Sukesh Bhatia
Sudhir Kumar, Advocate
(Expert) 24 May 2014
If bank agents are merely visiting an calling to pay then you have no grudge. They have right to do so.
You never said that they are intimidating, abusing or threatening you.
You never said that some retired policeman approached you in threatening manner boasting of his in-service contacts?
If that is the case then course of action may be different.
Guest
(Expert) 24 May 2014
1) There is no escape without clearing your liability by paying your dues.
2) You can enjoy cooling period only if you obtain fresh loan from your friends and relatives for clearance of your bank loans.
The third option can only be to shift your office and residence (not recommended) without informing even to the neigbours and other related persons. This can give you some temporary relief for the time being, but by that you will be treated as fugitive. Better meet the Bank executives to sort out your problem with some amicable solution on mutual dicussions. Otherwise, problem is likely to aggravate, as EMI of Rs.42,000 per month is not a small amount that banks can be expected to forget huge amount of their loan.
Guest
(Expert) 24 May 2014
Either You approach the Bank's High level Officers to convert the Dues to Fresh Installments Or You could approach Lok Adalat.Consult your Local Lawyer.Other tactics would spoil your career being a CA your self.
Rajendra K Goyal
(Expert) 24 May 2014
You should dispose off your assets to pay, failing it would be difficult to pay even after your settlement in your new profession. Better get rid now.
ajay sethi
(Expert) 24 May 2014
request for rescheduling of monthly installments . if you are unable to make payment you can declare your self an insolvent
malipeddi jaggarao
(Expert) 24 May 2014
You are fresh CA
You took personal loans in 2013.
The total EMI is around Rs.42000 pm.
You incurred loss of Rs.19 lakh in business and profession.
You are unable to pay and would like to escape the so called harassment of the financial institutions.
Good!
First of all you are a fresh Chartered Accountant. What is loss you incur in your profession to the extent of Rs.19 lakh immediately after taking personal loans from different banks.
You must have lost the money in business - share market?
You might not have disclosed the full facts to the bankers. they might not be aware of other loans you availed.
What was the purpose you revealed to the Bankers for personal loans?
When you are not repaying the agreed EMI they have the right to contact you wherever you are available. You cannot call it as trespassing. In fact you have availed the loans by misrepresentation and misused the public money.
What are your plans for repayment even after cooling period? How you will generate income for repayment?
If you have any concrete plans for repayment in future, my sincere advice is to manage repayment of some overdue instalments and represent the concerned banks for rescheduling the EMI if you can give them genuine reasons.
Sankaranarayanan
(Expert) 24 May 2014
first you act with conscious you enjoyed the loan so you need to repay it with good manner
Dr J C Vashista
(Expert) 24 May 2014
1. This is not a legal query.
2. I agree with experts.
3. No escape but to repay the loan in a dignified manner, there is no harm in discussing the matter with Bank (Higher)officers with a request to give some relief.
4. Your averment that you have suffered great loss at the stage of your start of career, that too, as a chartered accountant is not digested properly.
5. Does a fresh chartered accountant really need Rs. 19 lakh?
6. Is the profession such demanding?
7. What did you do with the personal loan amount?
Your intentions seem to be malafide and dishonest.
Biswanath Roy
(Expert) 25 May 2014
It appears from your statement that you intentionally suppressed the material facts of misusing your personal loan money in some bad speculations and faced losses due to lack of far sight for which you are entirely responsible. Why Bank will suffer who gave you public money?Better you meet the MANAGER AND SETTLE UP THE MATTER AMICABLY.
malipeddi jaggarao
(Expert) 25 May 2014
Thanks to all experts for their unanimous thinking on the subject.
Guest
(Expert) 25 May 2014
You are welcome, Jaggarao ji.
K.K.Ganguly
(Expert) 25 May 2014
1. The EMI amount you agreed to pay to the Bank for its providing youthe said loan is not linked with your profit or loss in your business/profession,
2. Talk to the Bank for getting some time.
T. Kalaiselvan, Advocate
(Expert) 25 May 2014
You have to reconcile yourself to the factual observations made by expert Mr. Malipeddi Jagga Rao garu and plan your next step accordingly as suggested. You cannot expect a favorable reply from any expert here for the debacles for which you alone can be held responsible. Sort out the matter by agreeing to the alternative solutions made by the bankers as an interim relief, if any through talks with them.
