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Sunil Kumar (Law student )     24 January 2025

Regarding gold loan

Respected Sir/Madam,

With due respect, it is submitted that one of my friend has borrowed Gold Loan from a Govt. Bank amounting to Rs.5 lac against Gold Amount Rs. 9 lacs in the year 2024 and the Branch Manager did not provide one copy of sanction letter which mentioning terms and condition of Gold Loan. After one year, the bank at once demanded full payment of Rs.5 lacs at once and  compel the customer for repayment fo 5 lac alongwith interest amount. Even the Bank did not intimate regarding repayment of gold loan after 12 months as Gold Loan does not exceed the renewal term or upgraded.  Due to non having Rs.5 lacs the consumer requested the bank to extend the term about 6 to 12 months but bank is not ready.  

In this default of bank, the consumer why suffered a lot ? Kindly suggest what steps have to adopt by consumer for repayment of gold loan in this the bank is fully liable for their mis communnication to consumer. 

 

 



 6 Replies

T. Kalaiselvan, Advocate (Advocate)     25 January 2025

Answer to moot court question can be had from your tutor 

Sudhir Kumar, Advocate (Advocate)     25 January 2025

Are you sure gold is not embezzled?       

Dr. J C Vashista (Advocate )     25 January 2025

Your coach is the only and best person to guide you.

kavksatyanarayana (subregistrar/supdt.(retired))     25 January 2025

Your tutor can resolve it.

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     26 January 2025

A concerning situation where your friend is facing difficulties with a gold loan from a government bank.

Key Issues 1. *No sanction letter provided*: The bank didn't provide a copy of the sanction letter, which is a critical document outlining the loan's terms and conditions.

2. *Sudden demand for full payment*: The bank demanded full payment of ₹5 lakhs after one year, without prior intimation or renewal/upgrade options.

3. *No communication on repayment*: The bank failed to inform your friend about the repayment terms or options, leading to confusion and distress.

Steps for Your Friend to Take 1. *Seek a written explanation*: Your friend should request the bank to provide a written explanation for their actions, including the sudden demand for full payment.

2. *Request a copy of the sanction letter*: Insist on obtaining a copy of the original sanction letter, which should outline the loan's terms and conditions.

3. *Negotiate a repayment plan*: Your friend can try to negotiate a repayment plan with the bank, considering their financial situation and the bank's lack of communication.

 4. *File a complaint*: If the bank is uncooperative, your friend can file a complaint with the bank's customer care department, the Banking Ombudsman, or the Reserve Bank of india.

. Relevant Laws and Regulations 1. *Banking Regulation Act, 1949*: Governs banking operations, including loan agreements and repayment terms.

2. *Consumer Protection Act, 2019*: Protects consumers' rights, including the right to fair treatment and transparent communication.

 3. *Reserve Bank of India (RBI) guidelines*: Regulate banking operations, including loan repayment terms and communication with customers.

 By following these steps and seeking professional advice, your friend can navigate this challenging situation and work towards a resolution.

P. Venu (Advocate)     26 January 2025

The facts posted are less than convincing.


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