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Bharat (NA)     22 January 2014

Personal loan - default

Hi all,

I am in need of some advise.  I took a personal loan in 2012 and that was going fine. After 6 months I was offer a topup on that loan which I went ahead with.

Since 2013 June, I have not made any payments towards that loan.  I left my job in March'13 and now doing odd jobs as a freelance and not making much of money.  My wife, after our kid was born could not rejoin the work due to medical problems. 

I have recently got a good offer to work for a firm and I took it and should get paid any day.  Today 22nd Jan 2014 a chap from HDFC back "Rahul" called me up (he has been following it up with me for some time now) to ask for the payment and I told him that I still have not got my pay.  He went crazy and said and I quote "mai tere ghar akar tere kapde utar ta hu kal, tu aise nahi mane ga, tere ko summon de kar jail me dalta hu, 6 mahine see pagal banna rakha hai, tu ruk kal milte hai".  He was not abusive, but his tone was really threatening and scary if you ask me.

I have 2 question:

1 - I have recently got a job and I have prepared to pay the loan, but starting next month, this month salary will go on Electricity Bills and other more urgent expenses.  What can I do in this case and what should I do in this case

2 - I do not have any assets and is it true that I can be jailed for this non-payment due to loss of job.  I am the only bread earner in my family and I am really worried.

Request you to please advise ASAP.




 3 Replies

2BHelpfull (Other)     22 January 2014

As Per RBI Direction bank can adopt only legal mean for recovery of the money .

if bank file a case then court will give u  time  to make the payment .n file ur reply to the case. and u will not directly adjudicated insolvent or go to jail.


first notice calling payment  will be issued .

if u fail to make payment as per notice then case will be filed in court ,here Court will give to time to make the payment .


it will take time but as u said u had job ,make ur problem understand to concerned authority for giving few more days.


donot worry .

Anand Bali Adv. (Advocate Solicitor & Consultant)     14 April 2014

Dear Friend,

Do not worry at all. No body can threaten any body like that. Up to most bank can file a recovery suit against you and you will be first asked to pay the entire money. however on your grounds of unableness you can be given time for that or bank can come for the out side court settlement of the lesser due amount which also can be negotiated in case the good Advocate mediates for you. Your intention to pay is enough in the recovery suits.

If you think I can represent you in this case for the court appearance and settlemet in your favour .

Advise, always take assistance from an experienced and well educated Advocate of the field.
Click "LIKE" in appreciation of the above answer.

Anand Bali, Adv.
(B.Com., M.A., LL.B., M.B.A.)

Supreme Court Of India,
High Court & District Courts of Delhi, UP & UK.
For Civil, Criminal, Property, Recovery, Consumer,
Service & Family Dispute Matters.

malipeddi jaggarao (retired banker)     23 April 2014

Go to the Bank personally and explain your stand.  Give an application for rescheduling the instalments.  You represent in writing that you are not a willful defaulter but because of the circumstances, you could not repay the loan in time, now that your financial situation is improved and you will start paying regularly hereafter.  You ignore the threats.

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