Deepak 16 June 2016

Abroad education loan

I bought educational loan from corporation bank for UG and PG.. For UG loan they gave me 2 lakhs and for PG they gave me 12 lakhs..I have paid around 4 lakhs till now..the outstanding amount for my loan now is 25 lakhs..is that any possible I can go for settlement or lok Adalt..I already speak to the managers for past 1 year and they are not ready to come for settlement..they are saying ur account is not in NPA..I gave my flat document as security..I did'nt pay any emi for past 1 year..but I can make a arrangement if they are ready to go for one time settlement. I gave a form for subsidy every year to cut off my interest. I have asked whether I got any subsidy for my account mean, they are saying government will say only in front of tv, we didn't get any mail or letter from the bank officials.once we get the mail let you know that. for past 4 years they are getting a signed documents from me and not gave any subsidy on that..i'm willing to go for one time settlement and I'm working on a salary of 12000 . they are asking me to pay what I afford, if I pay around 6000 mean on what basis they will take my money. monthly interest itself it goes for 24000. if I pay 6000 they are saying they will pud 5000 on my PG Loan and 1000 on UG Loan.i don't want to pay 6000 and going again with penalty. I need to sell the property and then only I will go for settlement. property will goes for around 18 lakhs only..please guide me on this as soon as possible sir..

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G.L.N. Prasad (Retired employee.) 17 June 2016

While availing educational loans,though educated, students do not study the interest impact and further problems that they may face in future and most of the defaulters in educational loan are the results of improper planning, over confidence, greediness and wilfully defaulting as the amount is heavy, when compared with loan. The fact that has to be remembered is that you have agreed to the terms and conditions and was confident while availing the loan.

You can not demand for one time settlement if the loan is not NPA, if the loan becomes NPA, the doors of financial institutions will be permanetly closed as you can not avail any type of financial help from any institution due to CIBIL poor rating.

Please remit the agreed installments as agreed and as you are capable and you have to weigh the benefit of educational qualification and easy money you got when you are in need. Repay money in your own future interests and keep obliged to the Bank for timely assistance.