Personal loan default

This query is : Resolved 

Online (Querist)
23 November 2020

I had taken a personal loan from Axis Bank. For few months EMI was correct. Unfortunately everything turned upside down when I joined a new company. There was a hike of Rs. 8000/- so I thought my emi can be paid without effecting my family expenses. But the salary I used to receive in my new company was in installments. I couldn't pay my emi properly. They had sent a legal notice. The due amount is 2,87,000/-. For last two and half years my salary was in installments except one month. Due to this issue I left the job and has joined another start up company. I had asked them for one time settlement of Rs. 1lac but they negated it. I have received a recall notice from their advocates through mail on Saturday. I don't know what to do. I don't have any money to pay. One lac was offered by my friends but now when asked they refused. Please advise Sirs.

Rajendra K Goyal Online (Expert)
23 November 2020

If the Bank file recovery suit, all expenses would be yours.

Who is guarantor for the loan? Bank can also proceed against the guarantor.

If you can arrange, clear the loan, it may be a better option.

Santhosh Chandran Online (Querist)
23 November 2020

Sir, there is no guarantor. And also on my salary statement they had given me loan.

Isaac GabrielOnline (Expert)
23 November 2020

You can go in for onetime settlement when it is taken to court.

Santhosh Chandran Online (Querist)
23 November 2020

Thanks Sir. I have consulted an advocate here. Can I be imprisoned for this

Advocate Bhartesh goyalOnline (Expert)
23 November 2020

If you don't pay the loan amount,interest and court expenses inspite of court judgment then bank may pray to court to pass an order to send you civil imprisonment.

P. Venu Online (Expert)
24 November 2020

The Bank can approach the Court in a recovery suit. Decree from the Court would allow only normal rate of interest.
However, the real problem could be from the recovery agents.

Rajendra K Goyal Online (Expert)
26 November 2020

Agree, these days Bank sell the NPA (non performing assets) to companies, which try to recover through recovery agents. Agents pressurize a lot to recover.

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