kumar (engineer) 04 November 2014

Education loan defaulty

Dear sir/madam,

I've taken education loan 3.8lakhs on Nov 2008 from INDIAN BANK. I did my B.E aeronautical engineering (2008-2012) but still i dint get any good job.

I am working in a BPO industry for 12k salary. I don't have any family support because my father passed away when i was 12year kid. Now i am the one who is taking care of my family. So i am unable to pay my education loan even after completing my graduation.

Recently i got a notice from INDIAN BANK that i should appear in court. On behalf of me my mother appeared in court and judge said to pay the education loan with in 6months.

I don't have any source to pay the education loan of 3.8l within 6months and before getting any good job, Sir.

Wat punishment i will get if i don't pay my education loan. I don't have any idea about wat action The bank and the court will take against me if i cant pay my education loan, Sir.

Please give me ur valuable advice, Sir

Thanks,

Kumar

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3 Replies

V M DAHAKE (PROPRIETOR) 04 November 2014

Dear Sir,

Please negotiate with bank, explain them exact situation with all the facts ( BE and 12 k salary do not reconcile).

P.THANGAVEL (ADVOCATE & LEGAL CONSULTANT) 05 November 2014

Please do not get panic that the matter went to the court. Engage the services of a good Advocate to represent you and put before the court valid defense by pleading the factual situation. Only after passing the decree by the court and on filing of EP, bank can take steps for attachment of salary and/ or arrest warrant provided they could establish that you have sufficient means to repay the loan. In your case, the maximum attachment would be normally does not exceed 33% of the latest net salary drawn.
Arrest warrant is not that much easy for the bank if you are living in a distance place. In the meanwhile you may approach the Zonal Manager of the bank and seek for possible OTS.(one time settlement) and sort out the issue if the offer made by the bank is acceptable to you.

All the best for early resolution.

P.Thangavel, Advocate & Former senior Manager of a leading PSB.

Sudhir Kumar, Advocate (Advocate) 07 November 2014

It appears you might have got some calls/visits from the bank. You knew there is a loan which is to be paid. You have not indicated whether any portion of loan is paid or not.

arrangement payment whatever you can ad then negotiate with the bank. Once you have lost civil suit then bank cannot negotiate and as they will be in a position recover loan from your property and salary.