Demand letter from bank

KINGSHUK GHOSH (Querist) 25 May 2021 This query is : Resolved
Could not pay my dues from last 3 months and got a demand letter from bank. I had taken a CC loan from uco bank under MUDRA scheme 1 and half years back.. I really want to repay it, just due Covid I could not do it in time.. Just want some time to have some business.. What should I do now..

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T. Kalaiselvan, Advocate (Expert) 25 May 2021
Lenders do have a board-approved policy for restructuring loans. ‘But most lenders don’t offer restructuring to retail borrowers as there is a cost attached to it’
The Reserve Bank of India (RBI) has not declared a moratorium or any other relief for borrowers yet like it did last year.
If the borrowers have lost jobs or employers have cut their salaries, they can approach the lender or the card issuer and renegotiate the terms of payment.
Most banks will reject a loan restructuring application stating that their policies don’t allow it. The borrower must be persistent and approach the top officials in the bank, especially the general manager of the recovery department
for personal loans and credit card outstanding, the financial institutions must approach a court and file a civil suit for recovery.

“Courts can take years to issue orders for recovery. It is in the interest of the lender to help the borrower if he is willing to pay and seeking some relaxation,
Hence you can take steps accordingly or wait for the lender to take legal steps through civil court.