• Personal loan

Dear Sirs,

I've taken a loan of Rs. 2 lakhs from Citibank 4 years ago an account of my wedding, paid loan for approx 2 years. I could not repay it now because after the wedding I faced many financial issues and I am now separated because of family problems.

I got calls from recovery agent and I called up back explained about my issues and asked some time period to repay it, however, some representative said the full settlement is needed, the bank has lodged a loss against the loan. 

Initially, I paid insurance for my loan of Rs. 2000 approx, hasn't this been claimed by the bank people. Now someone threatening badly saying he is a lawyer and I need to appear before the court. One of my colleagues gave security for my loan even he is being penalized. 

They somehow managed to get my wife's number,(Not sure how) claims that they are from citibank the is a gift from DTDC courier wants the address of her place!!!

This ruined my family problem even worse, kindly help how to deal with this.

my email address:
Asked 4 years ago in Civil Law

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17 Answers

1) make an application for rescheduling the loan

2) obtain detailed statement of account from citibank

3) as and when any case is filed against you contact a lawyer and file detailed reply

4) contest the suit proceedings

Ajay Sethi
Advocate, Mumbai
87894 Answers
6207 Consultations

5.0 on 5.0

In the name if bank many can put you in fear. Firstly, visit the bank and talk to the manager or loan officer of the branch from where you had taken the loan. If ask you to repay the loan asap then you can ask for some grace period.

If the loan is nit paid in time then a grace period is given, still if the loan is not paid then it becomes NPA, to recover the loan, the banks follows the steps as per the law.

As for example, Suppose, a case is pending before the court for loan recovery, if you have mortgaged something then if you cannot pay the loan within the specified date then if the authority want can give you some more grace period, if still the loan is not paid if the higher authorities gives any order then with the permission from the higher authorities/Tribunal/Court, the bank can take step to sale the mortgage property to recover the loan. The extra money, if earned from the sale is given back to you.

Moumita Mitra
Advocate, Kolkata
366 Answers
1 Consultation

4.0 on 5.0

Hello sir , the bank officials cannot resort to threatning and violence for the recovery of amount ... All they can do is , file a civil suit for recovery..if they threaten or resort to any illegal means you should register a police FIR under section 506 IPC of criminal intimidation

Hemant Chaudhary
Advocate, Gurgaon
4619 Answers
67 Consultations

4.9 on 5.0

Dear Client,

Hard recovery is banned and no such threats and calls can be made and amounts to criminal intimidation u/s 506 of IPC.

U can file criminal complain or through wife. Tell them straight if again they called or came to your house, u will file Criminal Complain. Bank can recover through valid legal process .

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

I must be certain reason and the payment of insurance amount for the loan does not allow you do not to pay the money barrowed. There will be a case in this regard and you need to appear before the court as you are a defaulter and you need to present your excuses for non payment.

The story as narrated by you and any family problem will not help you in this regard and you have to go for settlement of loan account as directed by the court

Vimlesh Prasad Mishra
Advocate, Lucknow
6848 Answers
23 Consultations

4.9 on 5.0

Let them approach the court for recovery, this way u automatically get more time. And court will permit payment in installment.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

Apply for rescheduling of Loan as you have lost your job

Mention it is not possible to make any lump sum payment

Ajay Sethi
Advocate, Mumbai
87894 Answers
6207 Consultations

5.0 on 5.0

Dear Client,

The bank cannot resort to coercive major for recovery in case they do so file police complaint against the bank under criminal intimidation.

Further the bank is asking you for address to send a demand notice to you for recovery.

You should give bank for rescheduling loan on account of problem and if bank ask you can furnish some security,

Further if bank initiate any recovery proceedings than hire a lawyer file appropriate reply, recovery proceedings takes time you will get time to arrange for money.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

- Limitation period for the recovery of loan is only 3 years from the last deposit made by the borrower.

- If you have taken loan 4 years ago and further you not refund any amount within the period of three years ,then the Bank cannot recover the amount from you as per law.

- If you have taken loan , then why the official of bank calling your wife ? This against the norms, you should complain against this act and further no bank etc has power to threaten its customer to recover the amount .

- Better to take help with any lawyer or call me , as you have not provided full details for a better solution.

Mohammed Shahzad
Advocate, Delhi
9872 Answers
121 Consultations

5.0 on 5.0

Let them go legal that will help you to ask time for repayment in court.

Vimlesh Prasad Mishra
Advocate, Lucknow
6848 Answers
23 Consultations

4.9 on 5.0

Dear Sir,

i assure you that you cannot be touched by the recovery agents. Be assured.

ICCI Bank Limited vs. Prakash Kaur case,

The Supreme Court in a landmark judgement reiterated its earlier stand that banks cannot deploy musclemen for recovery of loans from defaulters thus forcing them to end their lives.

"We deem it appropriate to remind the banks and other financial institutions that we live in a civilised country and are governed by the rule of law," a bench comprising Justices Tarun Chatterjee and Dalveer Bhandari said.

The court while dismissing the ICICI Bank's plea refused to delete the Delhi High Court's remarks that held the bank and its musclemen responsible for abetting a youth to commit suicide by humiliating him and taking away his motorcycle financed by the largest private sector bank.

It also asked the ICICI Bank to to pay Rs 25,000 as cost of this litigation to the respondents within three weeks and directed the Delhi Police to conclude the investigation against the bank expeditiously within three months, keeping in view the gravity of the allegations.

The court also directed the concerned Deputy Commissioner of Police to submit the investigation report in the Delhi High Court.

According to the court, complaints received by Reserve Bank regarding violation of the above guidelines and adoption of abusive practices followed by banks recovery agents would be viewed seriously.

Reiterating the RBI Guidelines on Engagement of Recovery Agents, the court said, "The Reserve Bank may consider imposing a ban on a bank from engaging recovery agents in a particular area, either jurisdictional or functional, for a limited period. In case of persistent breach of above guidelines, Reserve Bank may consider extending the period of ban or the area of ban."

"RBI had expressed its concern about the number of litigations filed against the banks in the recent past for engaging recovery agents who have purportedly violated the law," Justice Bhandari, writing the verdict for the bench, stated.

RBI in a letter accompanying its April 24, 2008 Guidelines had stated that it might consider imposing a ban on a bank from engaging recovery agents in a particular area, either jurisdictional or functional, for a limited period.

ICICI Bank had moved the apex court seeking deletion of some paragraphs in the High Court order which had said that "...the proximate cause of death of the deceased that led him to commit suicide was on account of humiliation caused by the Bank people from where loan was taken by him."

"The modus-operandi employed by the banks like ICICI for realisation of their loan amount and for recovering the possession of the vehicle against which loans are given is extra legal and by no stretch of imagination they can be permitted to employ musclemen and goons for recovery of their dues even from a defaulting party," the High Court had observed.

The High Court order had come on a petition filed by Shanti Devi Sharma, the deceased's mother, seeking a probe against the ICICI bank and its staff for the unlawful action, which led to the suicide of her 34-year old son Himanshu Dev Sharma.

Sharma had committed suicide in October 2005 by hanging himself at his house after he was allegedly intimidated and humiliated in front of his neighbours and family by recovery agents employed by the bank for recovering the loan amount taken for his motorcycle.

The ICICI Bank had contended that it was within its rights to recover loans and had followed the required procedure for reco

Kishan Dutt Kalaskar
Advocate, Bangalore
6050 Answers
381 Consultations

4.8 on 5.0

Firslty, no need to worry about the callls as per the Supreme Court judgments bank people can’t force you to pay.

Secondly, they can only go before the court to ask you to pay the amount.

Thirdly, if they still harass you then please file criminal complain against them.

Fourthly, and yes court can ask the bank to have the amount including the interest in instalments as per your problem stated by you.

Sanjay Baniwal
Advocate, South Delhi
5464 Answers
13 Consultations

5.0 on 5.0

If the bank is asking for full settlement, then tell them about your situation and request for EMI option, because if you Right now don't have any property or job then how you will go for full settlement!

Moumita Mitra
Advocate, Kolkata
366 Answers
1 Consultation

4.0 on 5.0

Hello there!

Thank you for putting query here. I am answering considering you as client on the legal angle and twist here. As you mentioned you took a personal loan for wedding. Now you are unable to repay the loan amount. In this situation, first talk to the representative of the bank with your problem and detailing out the problem due to which you are unable to repay back the loan amount. Further, since you have paid loan for 2 years so it establishes a worth to your argument and confidence to bank that you would pay. In any case bank altogether refuses to heed at all to any of aforementioned fact. Ask them for non-legal solution in your condition. If not at all listening in any form and just resorting to legal threat.

Come to the legal angle..Let them notice you to repay the loan. They have been asking your address just to deliver you a legal notice. You can't avoid that as you have default on payment. Just consult a lawyer in case you get notice on which send a reply through a lawyer. A notice a basic intimidation to the other party to send them to settle the claim/issue within a specified time else the matter would be taken to the court.

After the notice, the matter if they file recovery suit which would be basically a plea in court to order other party to settle the amount. This process of notice to filing a recovery suit to summon you would take 1-3 months . Get a lawyer and appear on the summon date and file reply of suit for recovery wherein they must have ask the remaining amount to be paid with certain percent of interest.

Since, all these process of you replying (written statement) to court and then they would file a rejoinder would take at least 6 months depending and varying from court to court. After the Rejoinder, you would have to come for evidence and denial stage which again would take months . In the evidence stage, show the judge all the strong evidence like you don't have a job and have been surviving without it. Judge would take the consideration at this stage and after that pass an order in the final argument....before Final argument ask your advocate to be put all your consideration before the judge to pass the order.

Furkan Ahmed
Advocate, DELHI
16 Answers

4.0 on 5.0

If the recovery agents are trying to use illegal means for recovery, you can contact a lawyer and issue a legal notice to them warning them with strict legal actions if they indulge in such illegal activities.

They can be instructed to follow due process of law for recovery and not to adopt such tactics which are considered to be crime under criminal law and they would be liable for all consequences if a criminal complaint is lodged agaisnt them for this.

T Kalaiselvan
Advocate, Vellore
78048 Answers
1543 Consultations

5.0 on 5.0

I dont own any property and lost job recently. Is there anyway to start paying for the loan again once I get my job in EMIs.

Bank people didn't agree for EMIs however demanding for full settlement.

If they dont agree for the any terms, let them proceed legally for recovery by following due process of law, by which you may get breathing time to settle the loan amount or can request the court for settlement of the same in easy instalments.

T Kalaiselvan
Advocate, Vellore
78048 Answers
1543 Consultations

5.0 on 5.0

Hi,

You are suggested to pay the defaulted EMIs and then start paying regularly. You are also suggested to appear before the court and present your proper situation.

Ganesh Singh
Advocate, New Delhi
6646 Answers
16 Consultations

4.5 on 5.0

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