Forcing to decrease period of loan.
k n singh
(Querist) 31 March 2011
This query is : Resolved
Dear,
Good morning,
I wish to inform you that I have taken loan against property from karvy Finance in the month of Oct. 2010 for 20 years (240 months). Now within 6 months they are forcing me please sign another agreement for 15 years period (180). In this way they are trying to increase my monthly instalment amount. At present circumstances I am not able to increase my EMI. Please give me legal guidance what should I do now?
Thanks & best regards,
K n Singh
bhagwat patil
(Expert) 31 March 2011
DONT SIGN THE FRESH ONE,Most of the Bank officers are ignorant of laws and also arrogant against the borrowers. After the enactment of the draconian SARFAESI Act, bank officials are thinking and acting, as if they are more than Courts and judges. That is why they dictate any terms with the borrowers and customers. In this context, the legal fraternity has greater role to play,to make them customer-friendly.
Devajyoti Barman
(Expert) 31 March 2011
Once the loan agreement is signed a concluded contract has been executed. Now if you are reluctant then the Karby can not execute another once. So only advice is not to sign any new agreement and for your refusal nothing could be done by them through lawful recourse.
This is mere proposal for which though no suit breach of contract lies.
R.Ramachandran
(Expert) 01 April 2011
I entirely agree with the views of Mr. Barman.
RAJU O.F.,
(Expert) 01 April 2011
Once agreeing for 240 EMI, the bank cannot force you to reduce the period to 180 months. Do not sign any fresh documents authorising bank to deduct more amount as EMI. If you have anything in writing from the bank compelling to reduce the loan period, you may approach the Banking Ombudsman for remedy.
malipeddi jaggarao
(Expert) 05 April 2011
Mr.Patil and Mr.Barman are correct. You do not sign any fresh agreement. If they ask you in writing, you can deny the same in writing. For more details in such type of matters please visit website of Rkannan personal. All the provisions relating to Banking are enumerated lucidly in that website.
