Dear Client,
Limited amount is left, you should have paid it,
Or let the account become NPA, than bank will itself approach for settlement.
Don`t agree with any demand and say straight, can`t pay more than 40,000.
Settlement cant be done by banks
My daughter had taken a personal loan of 2 lakhs in 2016 from catholic bank hyderabad and because of losing her job and having and issue with her lungs she is unable to work with great difficulty she had paid 166000. she is unable to pay further. however she had spoken to the recovery agent and asked fr a settlement 2 agents are involved one says its 61000 the other says 41000 and in a span of 4 days they call and say its 81000 and they also said interest is calculated on a daily basis. when asked for a settlement they say they bank doesnt accepts settlements and the system wont accept it. to pay 30000 now and in 10 days the remaining amount. they have called all the relatives and friends and told them the entire story thinking the amount would be paid by them. now we are unable to pay the 81000 but they say to write a letter stating monthly what can be paid will pay. but this will continue life long and i do not ahve the means to pay the interest life long. this doesnt seem to end. please advice what can be done.
Asked 6 years ago in Civil Law
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15 Answers
You should directly contact the bank branch or administrative office and settle amount under compromise and waiver of interest.
If that is not working to your favor then approach Lok Adalat of the area and try to negotiate with bank there.
In case recovery agency is mentally harassing your daughter, tell them that you will lodge a police complaint against them.
I fail to understand how a loan for recovery is assigned by bank to 2 agents.
Please verify veracity of it from bank
the bank manager its self has spoken and said 2 people are assigned towards the recovery, also since my daughter in unwell she might not survive long. when i told the bank manager the same he says in case of a death the people who stood as surety will have to pay the amount.
Asked 6 years ago
Ask bank ru give in writing amount it would accept as one time settlement
2) in alternative make an offer to pay Rs 41000 in full and final settlement
3) bank does not have any collaterals as security
4) let bank file suit to recover balance amount
It is true that guarantor would be equally liable to pay loan amount with interest
Amicable settlement is best option
Hi, they cannot use recovery agents to recover the loan amount .. The legal process is to file a civil suit in court ... If they tend to harass you again file a police complaint for threatning and crminal intimidation
Hi
Since it is a personal loan and that most of the principal amount has been paid and also that your daughter is Seriously ILL, you should write a letter to the bank(ccing bank manager, General manager etc) asking for one time settlement of dues .
Also the conduct of the bank manager is inhuman and against the principles of natural justice.
The bank manager is duty bound to respond to your letter and if no response is received, you can file a case at Lok adalat against the bank (with all relevant proof's) asking for one time settlement.
Hope this information is useful.
u can file petition before lokadalath seeking settlement against bank
There may be two persons of same recovery agency and you should approach their controlling office for compromise settlement and remission of interest, else approach Lok Adalat.
your can take legal proceedings to declare an insolvent under provisions of insolvency and bankruptcy code
Sir serve bank a letter/notice on behalf of the daughter stating and asking settlement and stating that you are ready to pay 41000 that amount in instalments as asked by there recovery agent.
If they dont agree let them file a suit and you can contest the interest amount in that. Further if you will press the bank shall be ready for the settlement.
Further any harassment by recovery agents file a FIR.
Yes the guarantor/surety shall be liable to pay in case of demise of your daughter,
1. If someone stood as a guarantor then surely the liability of a guarantor is co-extensive with that of borrower. The bank can only file a suit for recovery of money against the borrower or guarantor.
2. They have asked you to write a letter to mention what can be paid by you on monthly basis. So tell your daughter to write this letter to the bank manager and pay whatever she can on a monthly basis.
3. If the bank sues her for recovery in the civil court then she can contest the lawsuit.
Nobody is responsible for her personal debt. can`t be recoverable. And she is unwell, so till she do not rejuvenate, recovery from her not possible.
The collection agents cannot contact the relatives of the debtor for any reason.
They have to follow due process of law for default in loan repayment.
If they indulge in excesses then you can issue a legal notice to them.
If the bank is not ready to accept the terms, you may ask them to proceed legally and you can seek time before court for settlement in installments.
If the bank manager is rude or harsh in his behavior you may issue a legal notice to him to refrain from indulging in such illegal activities and to follow due process of law for recovery.
You endorse a copy to the higher officer seekig intervention against this unruly act.