One time settlement for educational loan
Vasanth
(Querist) 18 May 2024
This query is : Resolved
Hi Sir,
Educational Loan - 9 lakh, Debt Amount - 30 lakh
Both the Borrower and Guarantor Died. As I was the Only Legal Heir to the guarantor, bank sent me a sarfaesi notice two months ago. I Sent an OTS Offer to Pay the principle loan Amount. Now the bank manager told me that they are going to auction the house in next 10 days. What am I supposed to do now?
1. How to Calculate Amount for One Time Settlement (Secured Loan)?
2. What Should be the OTS Amount that bank would consider if the Debt Amount (Principle + Interest) is 30 Lakhs?
Thank You
T. Kalaiselvan, Advocate
(Expert) 18 May 2024
The consideration of OTS amount is the discretion of bank authorities.
They may or not accept the request for OTS.
You talk to the bank manager and decide the terms.
There's no provision in law to follow it as guidelines on this subject
kavksatyanarayana
(Expert) 18 May 2024
Yes. You'll need to consult the BM and ask him to consider OTS, it's their consideration.
SIVARAMAPRASAD KAPPAGANTU
(Expert) 19 May 2024
The very fact that bank issued notice under SERFASi Act shows that bank is on strong ground to get its money by auctioning the property under mortgage.
Go to Bank and negotiate with them for a reasonable OTS. Mere promise of paying principal alone shall not cut any ice with bank as they are on stronger ground. They may or may not agree for OTS, as unlike earlier years it is easy for them to execute security without Court case and attendant inordinate delays and expenses.
So approach bank in a cordial manner and get the matter settled amicably for a reasonable amount under OTS.
