• Loan default

I have my 2 properties under construction. Both builders are delaying possession and i have no clarity on if they will ever give possession or not. This way knowingly i am paying EMI's without even knowing if i will ever get my house. I have huge EMI's burden on me since i am staying on rent and my monthly savings are zero. I have already filed court case against both but these are time taking activity. 

I hence have stopped emi of one bank (last 10 months) and they have sent a cheque bounce notice to me and have levied heavy penalty on my outstanding if i pay them.

Is there an option where i can request banks to hold my emi through legal way. I dont want such hassles in life
Asked 8 months ago in Criminal Law
Religion: Hindu

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12 Answers

See you cannot hold emi you have to pay same and clear your dues though you can recover your possess interest from builder though the loan cannot be stopped.

Shubham Jhajharia
Advocate, Ahmedabad
25202 Answers
105 Consultations

5.0 on 5.0

Emi will not hold. Heavy penalty will reduce by court. what was the date of possession ? 

If date of possession is passed, issue builder notice for refund with interest. If not paid, appraoch RERA.

Consumer court will grant compensation with interest.

On three default, account becomes NPA, no interest chargeable.

heavy penalty on my outstanding - don`t worry about it. 

Yogendra Singh Rajawat
Advocate, Jaipur
20144 Answers
28 Consultations

4.5 on 5.0

you are liable to pay EMI on loan taken by you 

 

2) if you fail to pay bank can take recovery proceedings against you 

 

3 settle with bank and pay EMI . seek waiver of penalty imposed upon you 

Ajay Sethi
Advocate, Mumbai
76975 Answers
4621 Consultations

5.0 on 5.0

1. You can request the Bank to "restructure" your loan schedules, citing reasons of builders delay, rent liabilities etc....

2. Typically the Bank considers it and allows the same with new terms & conditions.

3. Stopping EMI payments are going to affect your CIBIL ratings and create prosecutable offences against you, as well as seizure /auction of property. This will result in double losses.

4. You can also consider selling of your properties in "as it is where it is" condition with Loan (transferable to new buyer) and get rid of immediate problems.

Hemant Agarwal
Advocate, Mumbai
4973 Answers
24 Consultations

5.0 on 5.0

upload cheque bounce notice

and also tell reason y u didnt pay ur emi

Arun Kasana
Advocate, Delhi
32 Answers

Not rated

There is no such option available under law. You can claim all such losses from the builder itself in your ongoing cases as the bank is not at fault 

Siddharth Jain
Advocate, New Delhi
5534 Answers
64 Consultations

5.0 on 5.0

1. No you cannot stop bank for deduction of EMI or stopping the same in any condition.

2. You can make application to bank for putting hold on EMI for some time but it will be choice of bank that your application will be allowed or not. 

Mohit Kapoor
Advocate, Rohtak
9322 Answers
3 Consultations

5.0 on 5.0

When the home loan is in default, banks do not seize the assets of the borrowers immediately. They send a notice to the borrower stating that the EMI payment has been missed and strict action will be taken in this regard

Even one or two missed payments can negatively impact your credit score, and a continuous default will dent it severely, making it difficult to get loans or credit cards in the future

A loan default can be considered as a crime under Section 420 of the Indian Penal Code (IPC). The Bank can file a case against you for cheating if you intentionally refuse to pay back the loan amount and are considered as a willful defaulter. But this is not the usual practice in default cases.

As per the RBI guidelines in case the home loan EMI is not paid for more than 90 days, the entire home loan becomes a non-performing asset and the bank may ask you to repay the whole of the home loan amount outstanding. It is only continuous failure to pay your EMI, which constitutes a default. Home loan default consequences are not so severe and mere isolated cases of a default in payment of an installment are not taken seriously. However, for a serious defaulter, the home loan default consequences in India could emerge in various forms, including legal action against loan defaulters:

T Kalaiselvan
Advocate, Vellore
66984 Answers
884 Consultations

5.0 on 5.0

You can go to consumer court and get the emis stayed and the builder penalised. You can make the builder pay you compensation and interest with bank have charged you. 

Prashant Nayak
Advocate, Mumbai
20589 Answers
38 Consultations

4.4 on 5.0

1. Bank is not to be made a scapegoat by the buyer if builder does not honour his contractual obligations towards the buyer. Your remedies are against the builder, which you have already adopted.

2. Now if you dishonour your contractual obligations towards the bank then latter can adopt its remedies against you.

Ashish Davessar
Advocate, Jaipur
29804 Answers
856 Consultations

5.0 on 5.0

you are liable to pay emi But you can obviously request the bank for settlement of your account which is totally their discretion to do. Legaly there is no way. 

Mohammed Mujeeb
Advocate, Hyderabad
17332 Answers
11 Consultations

4.5 on 5.0

No, There is no legal Way by which you can approach bank or direct bank to hold your EMI's transaction. Bank is a financial Institution and interest on Loan is its income so you have to pay EMI regularly.

 

if there is any hurdle or problem from getting possession within time you may approach RERA or file cases against the Builder. suppose, you got possession of your properties than you have to pay the installment, so this is not excusable that due to non delivery of possession of the properties, you will not pay EMI's of the Loan.

 

Feel Free to Call

Nadeem Qureshi
Advocate, New Delhi
5740 Answers
268 Consultations

4.9 on 5.0

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