Pravin (Associate) 14 January 2015

Personal loan

Hello Experts

I have a hypothetical question just out of curiosity. I have taken a personal loan of 160000 and will top up for 50000 more next month, so the total personal loan amount would be 210000. Now I have a good job with a good salary so I am able to pay the monthly EMI's. I've been paying properly since last 3 months. Just wanted to know, if I have no money/job, and if I am unable to pay the EMI's in future (assuming) what can be the consequences. Would I have to go to jail as I have given them 8 bank cheques as security? I have good intentions to pay and clear off the loan but just assuming if I am under such a circumstance that I am unable to pay.

Thanks.

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6 Replies

naveen arya (member) 14 January 2015

Hahaha...it seems your intention is not to pay loan. Of course you will be asked to pay it back or sleep in hail for few months.

SIVARAMAPRASAD KAPPAGANTU (Retired Manager) 14 January 2015

First of all, hypothetical questions need to be discouraged. For discussing any point of law forums are available.

Please understand that any person defaulting a loan is committing an offense under civil law and he is liable to his creditor to repay the loan as per the agreement between them.

Coming to your hypothetical events, I just wonder which Bank/Creditor gives a loan to somebody who has no job to repay ("...Now I have a good job..." denotes that you were not having proper job when you took loan) and give a top up too. Its too hypothetical to be true. No bank gives loans merely on the basis of some bank cheques (Post Dated Cheques). There will be collateral and/or personal security or guarantee. Banks have a standardized procedure to go after the defaulter or potential defaulter. Do not be under any impression that one can take a loan and just get away without repaying.

G.L.N. Prasad (Retired employee.) 14 January 2015

Remember, all borrowers will not be sent to Jail simply for the inability to pay a loan. There is an accepted procedure, and they have to make demands, file a suit , and it is the Judiciary that has to take ultimate action if the borrower is a wilful defaulter.

Once the loan becomes a bad, credit rating will be Zero and you can not be granted even single rupee loan for any of our urgent needs in future.

SAINATH DEVALLA (LEGAL CONSULTANT) 14 January 2015

OOH DEAR,

Gentleman, so you want to become a willfull defaulter,which will abstain you from availing any kind of loan from any financial institution.Beware,don't unneccessarily keep standing at the doorsgteps of courts endangering your carrier.

Anand Bali Adv. (Advocate Solicitor & Consultant) 14 January 2015

The willful defaulters are treated very badly in the court in 138 NIA cases as they unnecessary increase the burden of the court with their deliberate offences.

Yes, you will be charged for the payment plus Jail for some days and if you will not refund the dues with interest the jail term also will be increased in that proportion . So it is advised not to do this and as these are criminal proceeding you can loose your Government Job and also the opportunity of getting any further Loan against your mane as your name and ID will be listed in the defaulter's list.

T. Kalaiselvan, Advocate (Advocate) 18 January 2015

Do not seek advises for doing a wrong thing. You very well know that the loan availed has to be repaid, then why are you taking opinion from here to not to pay?,