Settlement of loan

File  a case in  DRT against  the bank and court may settle your  debt in MUTUALLY AMICABLE TERMS THROUGH MEDIATION.Or file a  case in Lok Adalat attached to district court and if the bank consents and the lok adalat  may settle yourDebt in mutually amicable terms through speedy disposal-say within 1/2 an hour at the most and decree of lok adalalt is equal to the decree of civil court and is binding on both of  you. I mean the bank and you.

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Let the Bank make the first move.

You can not impose terms on a bank and should abide by the terms and conditions of loan sanction.

Generally bank accepts to such suggestions from borrower, if his position is such bad.

But at the same me if borrower is in a sound position, there is enough networth of guarantors, and if value of collateral security is more than the outstanding, they need not accept the request of borrower.

They have every right to get entire amount due till settlement, and if any proposal has to come, it should come first from the bank and then only you can accept.  If borrower say that he has borrowed one crore and after 10 years, if he comes forward with a proposal to repay one crore, no banker can accept such proposition, when borrower net worth is high.

(suggested on the basis of the first sentence in query "there is a secured loan")

Dear sir/madam

Am pooja kumari..

My husband got a personal loan for 5lac from hdfc bank. He was worked in a pvt company with good salary,  two yrs back his company has been closed due to finacial crisis. After that he didnt get a job like previous one.  So he goes for free lance.. he paid the emi upto 42 months ...18 months remaining....

Due to unavoidable cirumstances he s not able to pay the remaining emi...

His father heart attack and sister's marriage he spent lot of money beyond his level... even am also going for treatment dont hav kids yet

So he asked for settlement from the bank

We dont bother about cibil...

We want only stress free life....

The bank manager said they will give settlement of 76,900 that too pay in one emi

I said it is impossible i want atleast 3 installments

They are not accepting

What shall i do pls reply

He paid upto 505134Rs. Maximum we paid

Per month emi s Rs.12027

It is in between your husband's capacity to pay and the Manager's discretion to allow it.

Banker looks into assets already earned or in possession and in the name of borrower, and the asset purchased out of the loans Plus third party worth, a bank is not supposed to accept the proposal and terms dictated by borrowers, and in case of private banks , they are very strict and they want every paisa back.  For them, every defaulter has the same story to retell.  The only advice is unless your husband gets every thing in writing both proposal and acceptance, he need not pay.

Mr.G.L.N. Prasad has illustrated.

Prasad sir

I cant understand what u r saying... explain me in a simple way sir...  my husband didnt pay his emi for the past 7 months due to unavoidable circumstances thats y v go for settlement with concession

Now they are saying i hav to pay 45000 then next month 31900 loan will be closed.... for us this much of money is impossible to arrange so i asked 3 installments but they said no....... 

Or else they wiĺl arrest my husband.... they are saying

Give me a solution sir.... what shall i do further

Simple thing is if local officials are not accepting, go to the next higher official and issue such  post dated cheques as possible to you..

Unless a crime is involved, no one can get arrested.  CVC has specifically advised all banks one week back, never resort to criminal complaint if the total amount involved is less than one lakh.  So banker is just threatening you with arrest, and he can not be arrested for default.  (It is another matter, if he misused the money and produced fake receipts without any actual purchases)

Immediately approach Legal Services authority, and let the offer be recorded in writing.   LSA can decide on their own, as bank is a Public Utility concern, and LSA decision can not be challenged further in any court in India.

Sir right now total outstanding is 1,92,000 settlement is 76,900  so they are saying arrest my husband reallly i feel stressed sir

Once a reply is given in open forum, believe in the reply.   It is not easy to get any borrower arrested unless there is a crime involved.   Are not you reading in the news papers ?  If making default is a crime, most of the famous business persons should have been behind the bars now.

When certain guidance is given, take some time to ponder over the practicability with out apprehending or assuming something.

1.Immediately represent to the next higher authority through Regd post  of such Manager/field officer explaining the difficulties and seeking for a compromise.  But offer a reasonable amount, as offering less than 50% of outstanding appears too unreasonable.

2.Wait for 15 days and then go to Legal services Authority and file a Pre Litigation Conciliation petition (Not even one rupee cost is involved in this exercise)

3.The Secretary/President can decide on the issue, and even if the banker is not willing, they may order for accepting such sum, being a public utility  organisation the decision/judgment is binding on the bank.

(If you wanted immediate solution,  plan for a personal visit to the bank superior official.   Search website, get the mobile no. of concerned superior, fix appointment, visit the office prepared with a concrete proposal and with blank cheques,  Part with blank cheques only after the compromise is accepted in writing by the Bank)

Sorry. I stop here.  As I can not offer any more guidance in this issue.

Thanks for sharing in the forum Mr.G.L.N.Prasad.

thanks so much mam what would be more convenient in this regard to settle and the procedure because i dont want lenghty litigation as my father is very ill.