Vijay Shankar 06 August 2021

Execution of loan renewal documents while bottowwer in jail

Can Bank can renewed loan documents while borrower is in jail for any reason.
Please confirm procedure for the same.

Quick Summary

This discussion explores the possibility of a bank executing loan renewal documents when the borrower is incarcerated. It suggests that renewal might be possible if the account isn't an NPA, with the bank potentially obtaining necessary forms from the borrower via jail authorities. The due date could be extended for genuine reasons if operations are satisfactory.

2 Replies

G.L.N. Prasad (Retired employee.) 07 August 2021

A peculiar doubt. If the borrower is in jail, how the operations are being conducted. You can seek clarification from the superior authority, and the due date can be extended for genuine reasons if the operations are satisfactory. The manager can take such forms necessary from the borrower by taking permission from Jail authorities. It is presumed that the account is not disclosed as NPA and renewal is not possible if it was disclosed as NPA