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maneesh   19 September 2016

How to bring back loan defaulter to india

One person has taken an education loan to study abroad.After completion of studies he got employed at UK itself.But he is not at all repaying the loan EMI and whenever contacting ; speaking aggressively.How we can bring him back to India or recover the money

 6 Replies

P. Venu (Advocate)     20 September 2016

The Bank can file a recovery suit.

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     20 September 2016

It is not known who is asking this question. Is it a Bank? Banks do not give educational loan just to the student alone. Educational Loans are given jointly to the student and his parent (normally father) and an independent guarantor or coobligation also is taken.  In your case no such details are available.  If the loan crosses Rs. 7.50 lakhs mortgage of the property also is taken.


If loan is jointly given, you may proceed against the joint account holder who may be father or mother. As suggested by other expert, you can file a suit for recovery.


However, effective steps are as follows:


1. Write a letter to the High Commissioner of India in UK giving full particulars of the defaulter, loan given, his present address, phone number in UK.

2. Write a letter to the Passport Authority about the default, duly giving details of loan and his present address.

3. If you know the details his present employer, you may report the matter to such employer also requesting their help to recover the dues.

1 Like

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     20 September 2016

Address of the High Commission of India in UK is as follows:

High Commission of India

India House

1 Like

Ms.Usha Kapoor (CEO)     23 September 2016

Bank  while filing reovery suit can send summons to th eloan defaulter  trhrough  Indian High Commissioner and also apprise his loan defaulting status to his current UK employers things can move towards his returning  to India to pay back loan and face the courts.If you  appreciate  this  answer please click the thankyou button on this forum.

maneesh   23 September 2016

Dear Sivaramaprasad Sir,  Thankyou very much for your matter to the fact reply.As you said there is a coobligator which is the father.But unfortunately his father was involved in some fraudulent activities and absconding.We heard that he is now at United states.Since the loan was sanctioned for 4 lakhs(balance amount he has managed) no other guarantor or collateral is there.The sanctioning authority has also done some mistakes.But our prime objective is to get our money back.(want a practical solution)

 The problem is we don't have the persons present address but we have his passport no.,The student id etc.We even tried sending a mail to the college authorities asking there help in tracing the student.But the initial reply is not that much satisfactory.

So as you said first we may send letter to our passport authority and the High Commissioner of UK na.Kindly guide me about any other things which also may help in getting the money back by putting pressure on him( some pressure tactics)


SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     24 September 2016



Normally High Commission/Embassy of India help the banks in locating the borrower. What about limitation. Now that he is out of the country, the period he is out of the country is not counted for calculating the limitation period. But, are you sure he is in UK!? If he is just giving that impression to make you believe that your limitation is in tack, your organisation may lose the chance to file suit. If possible first file suit immediately and then initiate these steps to report to High Commissioner,Passport Authority etc.


If you have any Correspondent Bank agreement with any British Bank, you may consider taking their assistance.


Take similar steps to track down the father who is in USA by reporting to Embassy of India in Washington and follow up till result comes. Mere writing a letter will not do any purpose. Follow up is the key.

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