About micro loan recovery
Querist :
Anonymous
(Querist) 24 March 2020
This query is : Resolved
Hi i am 28 year old boy from surat Gujarat
I have taken many micro loans from many different companies..
The interest rate is very very high for micro loans. They taking 20% interest only for 7 days loan..
And if i will not repay on the time then they will start threatening me and they will call from different different number and saying that they are from cibil department. And you should pay your loan amount before 12 pm
Otherwise we will forward your file to cibil department. And then they also calling to my all relatives and family members which contact are saved in my contacts books they call to all...
I have taken around 88000/- loans from different different companies.
I also paying interest around 23000/- monthly
On base amount of 88000/-
Now days here in Gujarat curfews is going so i am unable to pay my loans repayment now. Since 31st March. Because our office are closed. So i can't borrow money from anyone now..
I am in depression now..
Please help me or give me solution for this
Since - 4-5 days i have too much headache in tension of this
Please kindly give me solution
Rajendra K Goyal
(Expert) 24 March 2020
You have not stated for what purpose you have taken loan at such a high rate of interest. Generally loan is available ar 9 to 12% or so from Banks.
If you have taken loan for business purpose, approach some nationalised Bank after this period is over. Get working capital limit for one lac or so. Generally Bank does not ask for collateral for such loan if satisfied regarding your business.
Rajendra K Goyal
(Expert) 24 March 2020
You can remit the amount to concerned companies online. Arrange money from friend / relative / by disposing asset .
Try to avoid such high rate dealing.
Proper financial discipline and management can draw you out of this problem.
Raj Kumar Makkad
(Expert) 24 March 2020
No financer is permitted to charge such huge amount of interest. This is a crime as it can ultimately lead to the borrower to end his life so you have every right to make a criminal complaint against such persons.
Raj Kumar Makkad
(Expert) 24 March 2020
Repayment of the personal loan can also be got availed from the Nationalized banks who generally advance personal loan @12% per annum.
As the whole country is now under Lockdown so question of demand of recovery do not arise these days but after the expiry of the lock period, get the advances from the nationalized bank and get rid of the private financers.
P. Venu
(Expert) 25 March 2020
Charging such rates of interest is illegal. Please sum up the courage to ignore such empty threats.
Rajendra K Goyal
(Expert) 25 March 2020
After lockdown period is over, condition is normalised, it would be in best of your interest to try loan from some nationalised Bank.
T. Kalaiselvan, Advocate
(Expert) 25 March 2020
During this lock down period nobody will be allowed to travel to your home for recovery of loan.
If they are calling your rtelatives or friends then they only have to give strict replies stating that what these people do is an illegal act and if they don't refrain from indulging in such illegal activities,they may be sued and proper legal action through police will be initiated against them.
Even you can issue a legal notice to them for their such illegal threats and demands made in an illegal manner.
You can inform them that if they dont stop their threats you will lodge a police complaint against them.
In the meantime you can prepare to repay the loan amount within ther resumption of normal activities after the current lock down.
Sudhir Kumar, Advocate 
(Expert) 25 March 2020
It is surpirising how one can get loans beyond paying capacity.
Please make sure
whether there was any misrepresentation of facts while taking any/all these loans.
Raj Kumar Makkad
(Expert) 26 March 2020
Expert Sudhir! Majboori jo na kraye......It is seen that small shopkeepers and other poor persons have no approach to the banks and they are lured by the rich persons having musclemen as their recovery agents and they led money to such people on very high rates of interest which ultimately leads to either their suicide or auction of their small properties. This is bitter truth of not only rural but urban India.
T. Kalaiselvan, Advocate
(Expert) 26 March 2020
I agree to the opinion of expert Mr. Makkad sir.
The financiers exploit people by first inducing them to avail loan and then prevail upon them by all illegal means for recovery.
Sudhir Kumar, Advocate
(Expert) 26 March 2020
Yes views of Mr Makkar are true.
But the querist has stated that he has taken loan from companies.
He nowhere stated that the money is taken from musclemen.
He nowhere clarified why loan was taken.
P. Venu
(Expert) 26 March 2020
I have personal knowledge of such dubious companies operating from Surat in Gujarat, through internet. Their modus opernadi is in overawing the victims. And most of the victims happen to be homemakers.
The best cure is in avoiding them is ignoring them (unless the victim has handed over a signed blank cheque).
Sudhir Kumar, Advocate
(Expert) 26 March 2020
But the person has not given any vital information including
as to whether or not he signed cheque.
Rajendra K Goyal
(Expert) 26 March 2020
Views of expert Raj Kumar Makkad are true regarding MAZBOORI JO NA KARAYE.
Only way is proper financial management.
Some relative may be of help.
Through out ego and move to take their help.
Raj Kumar Makkad
(Expert) 26 March 2020
Throwing Ego is not a big job keeping in view the ongoing situation and we should not presume that the author is adopting egoism. We are here just for giving legal advice and not to undermine the status of any individual.
Rajendra K Goyal
(Expert) 27 March 2020
To get out of this mess, he can take help of relatives / friends even if he do not want to through away his ego.
So far as higher rate of interest is concerned, even reputed credit card companies charge higher interest some time upto 48% or above for default.
These companies charge interest as per their contract, details of which are seldom revealed to applicant or applicant seldom bother to know at the time of application.
P. Venu
(Expert) 27 March 2020
It is my understanding that the suggestions made and the reliefs suggested to the queries should be based on the legal elements inherent in the facts, as posted.
Based on this dictum, it is illegal to collect exorbitant rates of interest. The affected persons are entitled to evade or avoid such exploitation by unscrupulous elements. It goes beyond the confines of the known principles of law that what is illegal or unlawful could be permissible or permitted under a contract. It is well settled that what cannot be done directly, cannot be done indirectly, too.
Statutory legal provisions based on larger public policy cannot be contracted out.
Rajendra K Goyal
(Expert) 27 March 2020
Sir,
RBI in their master circular on credit cards have not fixed any highest rate of interest, have emphasised on transparency in levying of such differential interest rates.
Legally if the author feel the rate of interest is charged illegally, he must move to court.
Raj Kumar Makkad
(Expert) 27 March 2020
Circular of interest rate on credit cards is how applicable in the given case?
Sudhir Kumar, Advocate
(Expert) 27 March 2020
author never said that the has taken a legally enforceable loan.
Rajendra K Goyal
(Expert) 28 March 2020
Author has mentioned that he has taken loan from companies, it is doubtful companies provide loan through illegal way.
T. Kalaiselvan, Advocate
(Expert) 28 March 2020
The author has not reverted despite many suggestions, opinions and advises rendered by many experts above so far.
Let the author also give answers to the queries raised by some experts here in order to render more proper advises to his problem.
Rajendra K Goyal
(Expert) 29 March 2020
In the recent announcement EMI charging has also been postponed. The author must try to avail the benefit.
krishna mohan
(Expert) 29 April 2020
If the loan is from non banking financial companies you can send email for time as mandated during covid period. If from private parties, wait for some time to normalcy restoration and you can file a police complaint for charging and harassing higher rate of interest.
Rajendra K Goyal
(Expert) 29 April 2020
EMI can be postponed, yet interest has to be paid for the period for which EMI was postponed.
Raj Kumar Makkad
(Expert) 29 April 2020
The postponement facility has not been provided by GOI for the private companies so nothing can be done except to go to civil court after lockdown period and get the rate of interest re-settled,
Guest
(Expert) 29 April 2020
(With Reference to the Title in this Thread ) Micro Finance Institutions Network -- MFIN- Chairman Mr.Manoj Nambiar had announced MFIN had advised its members against sending the 2 lakh odd Micro Finance field workers to collect repayment at the time of present Crisis,
