NON PAYMENT OF PERSONAL LOAN

Querist : Anonymous (Querist) 03 May 2010 This query is : Resolved
Dear All,
Please help me out in in this regards as stated below:
I had taken a personal loan from a private bank for 3 years,but due to some financial difficulties ihad only paid 19 months EMI against that and from last 4 months i am not able to pay EMI back,bank has said that they will process some legal action against me.
I want to pay the loan back but need some time,can you please help me in this regard.
Please let me know what legal action can be taken against me and how i can come out of it by the best possible way,and in future what difficulties i will face kindly help me out in this case urgently.

Regards
Pradeep

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Parthasarathi Loganathan (Expert) 03 May 2010
Since you have the right intention to repay your debits, you need not worry about any legal action which normally any bank finds it as a last resort after exhausting all means for recovery. Please apprise your difficulties to the corporate head office of the bank and seek their permission to rephase your repayment plan and after remitting the overdue interest.

Guest (Expert) 03 May 2010
NANDKUMAR B.SAWANT.M.COM.LL.B.(MUMBAI),ADVOCATE
MOBILE.9271971251
e.mail.adv.nbsawant@yahoo.co.in
e.mail.nandkumarbs@sify.com

REGARDING THE BANK LOAN ARREARS OF 17 MONTHS KINDLY NOTE THAT.

1.YOU HAVE ALREADY REPAID MORE THAN HALF THE INSTALMENTS.
2.YOU MAY APPROACH THE BANK AND DISCUSS THE MATTER WITH THE AUTHORITIES AND PRAY FOR RESCHEDULING THE BALANCE LOAN .THE BANK MAY CHARGE SOME INTEREST AND MAY ALLOW.
BUT IN CASE THEY ARE NOT WILLING TO GIVE YOU ANY EXTENSION OF TIME AND ARE FORCING YOU TO REPAY THE ENTIRE AMOUNT IN ONE OR TWO INSTALMENTS AND DEMANDING CHEQUE FROM YOU BY USING PRESSURE TACTICS THEN KINDLY DO NOT ISSUE ANY CHEQUE WHICH YOU CANNOT HONOUR .IN SUCH CASE YOU MAY FILE A WRIT PETITION TO THE HIGH COURT AND PRAY FOR HELPING YOU BY GIVING LONG TERM INSTALMENTS.
KINDLY NOTE THAT THE MOMENT YOU FILE AN APPLICATION TO THE HC,IT MAY EXERCISE JURISDICTION AND ALLOW YOU LONG TERM INSTLMENTS AND ALSO LESSER RATE OF INTEREST.PLEASE NOTE.
GENERALY BANKS ARE NOT WILLING TO APPROACH THE COURTS WHICH GIVE HEARING TO BOTH THE SIDES AND GIVE JUST AND PROPER JUDGEMENT.PLEASE NOTE.
YOU MAY WRITE AND SEND DETAILS OR CALL.
THANKS.

nishad (Expert) 03 May 2010
Hi..as per the NPA provisons of the RBI, your account will be treated as NPA since there is more than 90 days overdue on the instalments..ROI charged on the credit facility will change into penal nature...but do not lose hope on this...try talking to head of regional office for rescheduling the loan facility..or you may pay a substantial amount at one go and try for writting off the outstanding amount....bank can make an appliation to bring attachment to ur salary,garnishee on ur bank accounts and even can proceed against ur disclosed assets...but these are all last resorts of the bank and they are also human and can understand ur problems, if genuine..