Financially Unstable Can't Repay Loans

Originally posted by : Amrut Jadhav
	Hello i need a help.. i am in financial trouble from last 30 days i have taken unsecured business loan of 2 lacs FOR 24 months Emi i paid 6 EMI but now due to business downfall and personal issues i didn't paid EMI for September. Recovery person headed to my office and forced me to pay EMI i explained them and even showed them my current bank balance is 100Rs only and my EMI is 10800/-That person said he is legal manager he will seal my office if i dont Pay EMI. I told them atlest next two months including this EMI i cannot make Any payment untill financial conditions are stable.That person said me he will deposit my security cheque and will stretch you to court matter I have genuine problem My query is ( How can they seal my office if i have not mortgage it )( And how can they deposit final cheque without prior notice ? )I talked to their seniors they just saying ask any relative for money and pay EMI i said i cannot because I took loan for my growth i can not borrow money from any one I really don't have money to pay EMI what can i do next please guide me well.

 

did you took loan from any bank or NBFC ??

 

Banks give loans and they need to collect EMI as agreed. Incase if they are not able to collect 3 EMI's it will become NPA (non performing asset), as per RBI rules for Banks. If any client not pay regular EMI as per the due date, they appoint recovery agency to collect the amounts. If you don't pay, they have pressure from their official's to collect at the earliest. That's why they send a person for meet and collect, as per his information they do next step by depositing the Cheque and go Legal Action as per their Banking Guidelines. They are going to update the CIBIL and Credit rating agency about your account. (No other banks give any type of loan including credit cards). You took loan from Bank on EMI basis, you must have a repayment plan too. You have to make alternative arrangements / plans to repay in EMI. Other option you can settle the loan amount as OTS (One Time Settlement) at the earliest. Simply I can't pay now is not the right answer. Business loss is yours only. Please do have a plan to run your Business or do a job to repay Bank Loan. I don't know your age but, I can think you are around 30 years, you must have atleast another 20+ years. Please cheer up, do think to earn money pay at the earliest.

yes i took a loan from NBFC
i am not saying that i am not going to pay but atlest last and currently going EMI is not possible for me because of the financial conditions i will resume paying from next month which i used to do before regularly

@radhakrishna murthy k
i am not refusing to pay I asked/told them that i am capable to pay recent and current month EMI as i had no sources to earn money I will make sure I will make payment before 3rd EMI but they don't understand they said they wants the money

As a Lawyer, you can take time and meet the commitment. You need time to repay, they will wait, 2 instalments they can wait without any legal action. That means you can take time for two instalments only. Best of luck

As a Lawyer, you can take time and meet the commitment. You need time to repay, they will wait, 2 instalments they can wait without any legal action. That means you can take time for two instalments only. Best of luck

First, make an application through Regd Ack Due requesting for rephasing EMI due to unforeseen financial problems and request them not to present cheques if any given.  These are mere threats and they can not the possession of any of the assets and it is normal threats by NBFC.  They are aware that if they approach courts it may take years.  As your commitment for rephasing the loan is in writing, and as they can not get any remedy through court within one year, they have to accept.  But, they may levy a very heavy penal rate of interest.  If you can get such an unsecured loan from a bank, avail that loan and repay NBFC before they reduce your credit rating.  All this at the costs your credit rating and may pose problems in availing loans in the future.