• Cash credit loan renewal

Sir
 I took a CC loan from andhra bank in 2008. I got sikhya sahayak job in 2011 august under Odisha govt which was contractual in nature. It took 5 years to me to close my stock and from 2016 there is no transaction . I paid the interest amount regularly . In june 2018 i cancelled my tin licence and officially closed my shop. The C C is still due. In mean while from in july 2018 I am declared as a regular employee in odisha govt retrospectively from august 2017.
 bank asks for yearly renewal . as there is no shop i can not renewal. Is it possible to convert my c c loan to a term loan .and is there any action from govt as I was a proprietor for a time being.
Asked 5 years ago in Civil Law

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9 Answers

Cash credit account is permitted to be converted to term loan only when you have incurred heavy losses specially due to Natural calamities and not due to wilful default to give you time to repay in instalments

2) you can apply to bank for conversion of your clown into term loan

3)during course of your employment with govt the you cannot carry on business . Disciplinary action can be taken against you

Ajay Sethi
Advocate, Mumbai
94520 Answers
7485 Consultations

5.0 on 5.0

CC loan can't be converted into term loan which please note. You have one option you go to bank and discuss with them that you wants to repay the CC amount via term loan so they may transfer the amount to repay CC loan if agreed be as it will be a fresh loan.

Koshal Kumar Vatsa
Advocate, Gurgaon
2283 Answers
3 Consultations

5.0 on 5.0

Hello,

There will no action from the government as after taking the job you are not a proprietor.

I would however advise you to take a personal loan and repay the CC loan at the earliest.

Regards

Anilesh Tewari
Advocate, New Delhi
18077 Answers
377 Consultations

5.0 on 5.0

If it was discovered that while in govt service you were carrying on business disciplinary action would be taken against 

Ajay Sethi
Advocate, Mumbai
94520 Answers
7485 Consultations

5.0 on 5.0

bank asks for yearly renewal . as there is no shop i can not renewal. Is it possible to convert my c c loan to a term loan .and is there any action from govt as I was a proprietor for a time being.


You can talk to the bank manager about it and request him to convert the same into term loan.
It depends on the manager's discretion to accept your request.
Most likely he may agree to it on the basis of your government employment because it would be easy for recovery in case of default in repayment at a later stage.

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

I am no way a business proprietor. Can any one bring a charge that I was a proprietor for a small time while in govt service after 2 or 3 or 4 years. And would there be any action?

Since you have quit the business even before getting this employment, there can be no action taken against you even if the authority is becoming aware of your past business.

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

Don't worry nothing can be done now.

Koshal Kumar Vatsa
Advocate, Gurgaon
2283 Answers
3 Consultations

5.0 on 5.0

Do not worry now 

Anilesh Tewari
Advocate, New Delhi
18077 Answers
377 Consultations

5.0 on 5.0

You can during course of employment not carry on any business 

 

govt would take disciplinary action against you  for carrying on business during course of your employment 

 

 

Ajay Sethi
Advocate, Mumbai
94520 Answers
7485 Consultations

5.0 on 5.0

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