I had taken an Education Loan from SBI in the year 2006 to the amount of Rs. 17 lakhs. I went abroad for my studies and came back in 2007. As I understood from the banking norms, the moratorium period is supposed to be 1 year from completing the studies or 6 months from obtaining a job, whichever is lower. After one year of completing my course, I applied for the extension of the moratorium period which was granted by the bank. In short, my EMIs were supposed to start from October 2009. Till then, no amount was paid into the loan account whatsoever. Our family was in the worst state during that time till almost the beginning of 2013, where in my father and I were in a position to start paying the loan amount. All the while, the bank was informed in some way or the other about the current position.
As of April 2013, the bank stated that I had a total outstanding of Rs. 41 lakhs, including interest, calculated from the first day of the disbursal of the loan till April. I contacted the bank for a settlement since I have been able to amass a certain amount of money, more than what the bank had originally given me. I was offered a decent settlement of Rs. 32 lakhs, but on ridiculous terms, stating that I have to pay Rs. 20 lakhs upfront and pay the remaining Rs. 12 lakhs in six months installments, amounting to Rs. 2 lakhs per month. I informed that this is ridiculous and it is impossible for me to be able to shell out that kind of a money. I was shrugged off by the bank and they have sent a legal notice to my current employer seeking permission to attach my salary to recover the loan amount.
There is a legal case going on in DRT and we have appointed a Lawyer to contest the case, and even after this, with the legal proceedings goin on, the bank is still pressurising me for payment of the entire amount of Rs. 42 lakhs now and it is impossible for me to be able to pay that kind of money. Also, we had mortgaged a property (current valuation Rs. 70 lakhs), and the bank says that they can't sell the property off as there are some issues in it and without selling the collateral they are wanting to take money off my salary through my company which would be really embarassing for me. I already offered them a setllement of Rs. 25 lakhs, but that effort was in vain.
Kindly help me as to what can I do in this situation. I am willing to make a one shot payment to them, but the bank is reluctant now and says no settlements can be done. I am still contesting the case in DRT and trying to fight it, but I would still appreciate any help that I could get from this community.