Sarfesy act

Querist : Anonymous (Querist) 11 May 2022 This query is : Resolved
I have bank loan of 200000 since 2016.interest is 13%.Loan tenure is 15 years.i was paid EMI properly up to 2019.due to covid crisis remaining EMI are become dues.now i got demand notice total amount of 232000.it mean there is interest dues 17000 up to now.
Is this dues sufficient to take action by sarfesy law?Loan tenure is 15 year.i already paid around 150000 as interest in last 5 years.how can I free from sarfesy act

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Quick Summary

This discussion concerns the SARFAESI Act and its application to bank loans. The original poster has a loan from 2016 with a high interest rate, and missed EMIs due to the COVID-19 crisis have led to a demand notice. They are asking if their current outstanding amount is sufficient for the bank to initiate action under the SARFAESI Act and how they can prevent this. The advice given is that SARFAESI action can be taken if the loan agreement is breached and the principal and interest are not cleared within the agreed tenure.

kavksatyanarayana (Expert) 12 May 2022
As stated facts, if you have not cleared the principal amount with interest thereon without exceeding 15 years, then only sarfaesi question arises. So without breaks you shall clear the loan in EMI with interest.

N.K.Assumi (Expert) 15 May 2022
Once there is a breach of written contractual agreement between the parties, the Bank can take action under the said act.

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