Bank not allowing me to close my gold loan account & not releasing my jewels

Hello Kingsley, I acknowledge your question. Here if you have paid all your interests regarding the loan, you can file a complaint under section 12 of Consumer Protection Act to the Consumer Protection Board of your jurisdiction alleging the deficiency in services provided by the bank manager even though there was no default on your side.

I hope I have answered your query, if you have any further query do drop here.

Have a good day.

Come out with fundamental facts, no bank dares to act in such an Arbitrary manner to you alone.  Either your account or some other account guaranteed by you might have already been declared as Non-Performing Asset, and the bank might have exercised its right of general lien.

So, basically why the bank is doing this because,

I have taken a educational loan in 2013 amount of rupees 2,75,000.

I have been paying the loan correctly when I got the job. I was not able to pay for a period of time as I was jobless., during the period of covid. I had explained the situation and they had extended the period for paying it. 

But then, I have paid the principle amount of 2,75,000 + almost half the amount of interest. Even though paying off all these I still have Interest and balance accumulated around 2 Lakhs. I have been requesting the bank for concession to close the educational loan. 

(I have the proper statement of my educational loan) 

On the other side I pledged the jewels in the same bank. I haven't payed any interest yet. I went to the bank at the time of renewal to pay off all the interest and principle to take the jewls out., So here the branch manager says it's your account and the educational loan and gold loan is merged and henceforth you are allowed to renew or take your pledged gold out. 

I even wrote a letter to the branch manager, Stating my situation and I was not able to pay off my educational loan because I was jobless and requested 3 months time for me to continue paying off educational loan as I'm likely to get a job., And therefore I had requested the branch manager to release my my gold out. 

Even after agreeing and requesting the branch manager, the branch manager sends me a separate legal notice for educational loan and auction notice for pledged gold. 

Even after the auction notice I visited the bank to take my jewels out, the branch manager is rude and not allowing to take my pledged jewels out. Branch manager says do whatever you want. This is our procedure. We can't release your jewels. He wants me to pay the educational loan fully. And he says he can't give concession for the educational loan. 

Name of the Bank : CANARA BANK, Titan Branch, Hosur

Now, the query is what is the solution to take my pledged jewels out ? Is there any rule for the bank to stop a person from renewing or taking out his pledged gold out ?

Is there anything I can do for solving this.

Approach to District Legal Services Authority for proper guidance and list the case in Lokadalat for a compromise as you are jobless and can not fight with a mighty PSU, who are equally justified in the tough stand as the money advanced to you is public money deposited with them.  During covid, there is reschedule for all loans, and if there are no overdue installments, you can convince the Lok Adalat.  Also, explore getting additional security or third party guarantee of a person with good worth for the educational loan and negotiate for releasing the jewels.  The bank is legally proper in exercising the banker's right of general lien and you can only negotiate through Lokadalat and filing this as a grievance in their bank online portal.

You may take up the matter with the Banking Ombudsman or bring the matters to the notice of the RBI.

Do you have their official contact / email / grievance column

In the light of the full facts of the case, the Bank is in its right to exercise a general lien. You may approach them for a one-time settlement of Educational Loan with a waiver of penal interest etc. Normally Banks permit a compromise if the proposal by the Borrower is reasonable. Please resolve the matter amicably with the bank.