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Sonia   10 January 2024

Notice 13(2)

Hi, I received 13(2) notice on 04.12.2023 and I sent reply on 30.12.2023, through mail. but the bank didn't replied yet. please let me know what to do now, as home loan is taken from Elder Brother and he denies paying the loan installments because of family disputes, and I am the loan guarantor take all home loan responsibilities in absence of brother to save and secure my family and home,brother has run away from home leaving all the repayment responsibility on me. In light of the circumstances, I kindly request your prompt attention to this matter and would appreciate your guidance on the necessary steps to initiate the loan settlement process. 

in reply of Notice 13-2 i requested bank an extension of total loan tuner and reduce loan installment in half of total monthly installment to explore potential solutions to regularize the loan account, I was paying more than half of installments from last 7 months for bank convenience.

please advice me what to do now for process of extension Loan and reduce loan installment.


 1 Replies

anjali tamrkar   23 January 2024

If you are facing a financially distressing time, you can negotiate and modify the terms of your loan to avoid defaulting on payments. This process is known as loan restructuring. It is a better way to extend your repayment tenure. However, you must note that your lender may consider your request based on many factors such as your repayment capacity, past payment history, nature of the loan taken, etc. Usually, such solutions are only provided to certain types of term loan borrowers.
However, due to the COVID-19 pandemic, the Reserve Bank of India (RBI) announced a one time loan restructuring policy for all borrowers whose accounts were classified as standard as on Feb, 2020. This policy has once again been reintroduced on May 05, 2021 in light of the economic distress caused by the 2nd wave of COVID-19 and the subsequent lockdowns. As per the RBI guidelines, loan restructuring applies to individuals who do not have outstanding for more than 30 days, and are under financial stress due to the pandemic. Furthermore, lenders will have their own policies to evaluate the eligibility of applicants for loan restructuring. It may seem a great idea if you are adversely impacted by events like the financial instability induced by the COVID-19. However, keep in mind that you will have to incur loan restructuring fees and higher overall interest payable, as your tenure increases.

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