Sub: Personal Segment Advance – under education loan scheme – term loan of Rs. 300,000 borrowed from State bank of Hyderabad, Masab tank, Hyderabad branch.
I wish to inform your kindself the following for legal guidance and your esteemed opinion.
1. The Education loan was taken in two installment @ 1.50 Lakh (on 5-7-2006) and Rs. 1.50 Lakh (01-01-2007) for higher studies (M.S.) @ 11% interest per annum.
2. Accordingly I have fulfilled the purpose of loan and successfully completed my M.S. from Sweden in 2008 March.
3. As per agreement repayment of loan commences one year after the completion of course i.e., March (2+1) =3 years moratorium 2009.
4. The loan is sanctioned on the basis of a 3rd party guarantor.
5. Unfortunately up till now I could not secure a salaried job. I am doing some odd job work hardly sufficient for my livelihood and parents care.
6. Nevertheless I have arranged some money and repaid about Rs.70,000 in various installment as and when I could afford.
7. But since last five months the bank agreed upon an amount of Rs. 4050 as an EMI on regular basis and it is being directly deducted by the bank from my Father’s pension who is a senior citizen and heart patient.
8. Now the bank in spite of accepting monthly regular payment of Rs.4050 issued a legal notice for the recovery of accrued interest of Rs.164,000 (as an interest from the date of the sanction of the loan i.e. 4 years 11% some where equal to 164,000 with penal interest).
9. The bank has informed that the loan is repayable in 90 months @ Rs 4050 EMI.
10. It seems the bank has not considered the Moratorium period and imposed interest from the date of sanction of the loan 05-07-2006
The serious concern is that the interest should be levied after completion of the course added with one year grace period but my bank is charging the rate of 11% interest from the date of the sanction of the loan and the total amount us as below: -
Loan Amount – 300,000
Interest 11% for – 165,000
Total due 4,65,000 (As per bank notice)
Although occasional payments around Rs. 70,000 before the commencement of regular EMI of Rs.4050 since last four months but still I have been given a notice for paying Rs.165000 in total 7 days and failure do it legal action will be taken against me.
So, I want your kind help in this regard. How I could settle this matter and how my interest will be deducted.