I had availed an Education Loan of Rs 4 Lakhs for pursuing MBA from Allahabad Bank in 2004.
After course completion in 2006 I started repayment of loans starting April 2007 via EMI of Rs. 7000 per month.
Owing to job loss I stopped paying EMI from November of 2009.
When I checked with bank on the outstanding in Dec 2011 I was told that it is 7.5 Lakhs which I find hard to believe for I had dutifully paid EMI for 30 months.
I had requested bank to waive of late fee & penal interest but according to bank they have not levied any late fee or penal interest.
By the grace of God , I can settle this account just that I expect bank to provide me some concession/rebate towards the total outstanding.
The Bank manager says that if I pay 7.5 lakhs in one go he can offer me a rebate of 7%. As a goodwill gesture & amrk of my intent I have deposited Rs. 50,000 already in December 2011.
I can afford a payment of a lakh a month (not easy but manageable) but not 7.5 lakhs in one go.
Will I still qualify for relief under the RBI OTS scheme?
Is a lump sum payment must or can I have it in 6-7 installments.
Can anyone please quote the circular number for my reference?
Appreciate any help.