Upgrad LLM

npa education loan on my sister's name

salaried Employee

Dear Sir,

We are from poor family. I have studied on education loan of 50000. I fully repayed my education loan. My sister also studied on education loan from SBI of 3.43 lakhs in 2005. I got a  job, but my sister is still jobless. My mother is housewife and my father had a small business. Due to my father kidney failure we got into lot of debt. My father expired due to his illness. Now I have arranged by taking new loan for my sister's marriage. I am unable to repay her loan and arrange her marriage amount.

Bank has no mortagage property or any security deposit.

My father was guarantor at that time.

My sister is still jobless.

What should I do. If I start repaying it will be huge debt and will able to repay in 12 years of salary.

Can bank take any action on her or her married life will be disturbed.

We have one ancestral house on my father's name and some land altogether worth of 20lakhs.

I want to know what action can be taken on her. She will become housewife and will not do any job in futrue.

 
Reply   
 
Retired employee.

Let the Bank initiate action and then face the situation, as you can not do any thing now.   They can proceed against legal heirs of your father, as he is a guarantor.  They can even get attachment of propertie standing in his name.

Members can not anticipate the action Bank may take for recovery.  The money advanced to you is depositor's money and Bank is  accountable for recovery at any cost.  Now that your father is having Rs.20lakhs property, they may not remain silent as personal sympathy is different from duty and responsibility.

The same story from each and every NPA of Educational loan without exception,  may be real but sounds like filmy problems.


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Retired Manager

I agree with Shri G L N Prasad.  However, my advice to you and your Sister is that you should meet the Bank Officials and find out the position. Ultimately, they will take action and before taking action they will make enquiries and find out about the properties that shall be inherited by your Sister and may proceed against suchproperties.

 

Therefore, its better to approach them and work out a compromise proposal with some concession in the interest and pay out the amount in final settlement and take a clearance certificate.  


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salaried Employee

Thank you sir for your kind reply..

I want to know if they can disturb my sister's married life or they can simply attach my father's property as he is no more. Should I talk to the manager about this because they don't know about my father's death. Or I should do arrangement for her marriage first then will go to bank for some help of settlement. I am just worried for her.

 
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salaried Employee

No property is inherited on my sister's  name. Land is also on Mother's name after death of my father. Only house is still on the name of my father. After marriage can bank inspect her husband income or their property. if yes then first I should settle loan then go for her marriage

 

 
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Chief Lawyer

I totally agree with Sri GLN Prasad & Sivaram Prasad Kappaganthu. They have advices correctly. At the time of getting the loan, the creditor appears as GOD. Be thankful & greatful to the Bank that they helped you to become capable to sustain yourself. You shd now think of ways to repay it may be by bargaining a little with the Bank. Remember many others also will be in que to get such help from the Bank, think about them. As said by Sri GLN Prasad every loan has the similar story. Time is now calling for your duty & Resposnsibility. Good luck

 
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Retired Manager

 Mr.Rajeev Singh,

Your intention should be to repay the loan.  How bank will come to know of our assets, what they will do are not your concern. They have their methods.  To answer your specific query, after marriage, Bank may not proceed against the husband of your sister.  You are informing that the house property is still in your father's name.  Your sister also shall inherit part of it. Therefore, the house is in her name also.  Bank shall attach the property. Your father being the guarantor to the loan, in his absence, his legal heirs, including you,  are liable to the loan.  Please ensure that the loan is repaid at the earliest.

 
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Retired employee.

You are more worried about preserving your property, and your sister's welfare, and not even a word has been stated about repayment of Bank loan. This use and throw policy is not proper.  The Banks may entrust this work of assets to private detectives and outside agencies to investigate into your financial assets / standing, and they provide the entire information with such certified copies at a cost to Bank.  All these costs should also be debited to the account.   Please do not under estimate the capabilities of a sincere banker, and as the money belongs to public, without any fear and favour they perform theri duty in such recovery.

So far so good, In future they may even sell away these NPA as special purpose vehicle to outside agencies, and they have got their own way to recover the money with their threats and tactics and mercy is not in their dictionary.

 
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FIN

Agreed with above advises.

Use the land and house to generate some income and pay the installments.

After marriage your sister need necessarily to be housewife.

It is always better if grils are working and financially independent.

Find ways and means to work to generate extra income and pay the debt.

 
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Advocate

Bank can file suit in civil court for recovery of dues and get property standing in the name of your father attached. 

 

My view is allow your sister to complete her education and repay her loan. Why are you worried about her marriage?

 
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