Unpaid cooperative bank loan

Susmita Devi (Querist) 10 March 2023 This query is : Resolved
My mother had brought a loan of Rs 20,000 at 19% interest in the year 1996 ... now from the loan amount she had paid Rs 12000 and rs 8000 were unpaid ...now the cooperative bank asking for Rs 3,50,000 because of rs 8000 was not paid on time ....now my mother is not able to pay the due amount and i don't know what to do now as my mother belongs to schedule caste and she is a house wife so she is not able to pay the whole amount ...so can i get some suggestions or help on this matter

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A user is seeking advice regarding a cooperative bank loan taken out by their mother in 1996. An initial loan of Rs 20,000 with 19% interest has ballooned to a demand of Rs 3,50,000 due to a small unpaid balance. The user's mother, a housewife from a scheduled caste, cannot afford this amount. Suggestions include seeking a detailed breakdown of the charges, investigating the statute of limitations for debt recovery (which is typically three years), and exploring options like consumer court or Lok Adalat for settlement.

Sudhir Kumar, Advocate (Expert) 11 March 2023
Pay the loan. If you feel there is mistake in interest calculation you can move to consumer court. in case the unrest is at compound rate then the calculation of interest would have been double of what they are paying.

T. Kalaiselvan, Advocate (Expert) 11 March 2023
If the loan amount has not been repaid for a long period of time then it would have the accrued compounded interest added to it.
However this seems to be exorbitant hence you may better seek the details or the breakup for this imaginary amount shown as outstanding.
Before that you may please note that the loan might be barred by limitation if the bank has not taken action for recovery within three years from the last date of transaction, hence do not sign any paper committing the repayment which would be treated as an acknowledgment for the outstanding loan, and the limitation will start afresh from that date.

Sudhir Kumar, Advocate (Expert) 12 March 2023
the above limitation will resume the moment when you or your mother acknowledge the debt at this stage by any written or verbal expression.

Dr J C Vashista (Expert) 12 March 2023
Settle the loan with Bank.
However, it is not a legal dispute for consideration and obligation of experts.

Isaac Gabriel (Expert) 12 March 2023
At the time of sanction of the loan, the terms and conditions for the settlement of principle,interest,penal interest and other incidental expenses for initiating legal process would have been incorporated in the MOD. The question of limitation etc., not arise.This is the procedure in respect of Housing loans.therefore try to settle the dues.Alternatively you can approach the Look Adalat.

krishna mohan (Expert) 10 April 2023
Morally loan repayment cast on the borrower and any failure will have its own impact. I see two options talk to bank ask for details and for such a claim if you would like to settle. Another option is wait for further claim from as admissible under law as it appears the claim is time barred. You also may check whether the communication address has been changed as bank would have sent to the address which declared in the loan application.

Sudhir Kumar, Advocate (Expert) 10 May 2023
non-payment of debt results in reduction of future chances of loan.

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