I secured a loan of Rs. 18 Lakh from SBI in 2005 for my foreign education. At that time the interest charged was around 9% and at present it is 14.35%. At the time of securing the loan the instalments were calculated at 40,000 Rs (60 EMI in total). From 2005 till 2010, when I finished my degree my father and I kept paying the interest that was incurred on the amount. From 2010 onwards right up till Jan 2015 I kept paying the EMI’s on time. There were few that we missed but everything was cleared up till Jan 2015. I lost my job in Dec 2014 and found another one in Jan 2015, but my salary is not that much and I can only afford to pay 15,000 Rs a month against the 40,000 Rs EMI. I have spoken many times with the bank and every time they have either refused to extend the instalment period or negotiate on the EMI amount. At present my total outstanding with the Bank is 4.5 lakhs. They have sent me a notice asking me to clear the Rs.71, 000 due amount from the instalments. Can they take me to court for this or confiscate our house which we put my as a collateral? Please advise what options I have.
Saurabh.bhonsale@gmail.com
