• Personal loan issue

Hello  ALL,

I need your advice on how to solve my personal loan problem which i did not pay. As i am working in IT the bank people are threatening me saying that we will come with police into your company and arrest you and you will loose your job. Please guide me on how to fix this. I am ready to pay but not the amount which they are asking to pay as i am working for a very less salary i cannot pay the money what they are asking. And also is that allowed to come into a company and arrest a person for Personal Loan. 

Note: I want your advice on how to reduce the Maximum amount to be paid to the bank. And who can help me with this ?
Asked 1 year ago in Civil Law from Chennai, Maharashtra
1) what was amount of loan taken by you?


2) when was last payment made by you ? 

3) has period of 3 years passed since last payment made by you?

4) if so claim of bank would be barred by limitation 

5) if 3 years have not passed bank can file summary suit against you for recovery of loan amount with interest .

6) bank cannot arrest you for non payment of loan 

7) if you have issued post dated cheques bank can in default file complaint under section 138 Ni for cheque bouncing 

8) you can contest the case on merits 

Ajay Sethi
Advocate, Mumbai
23291 Answers
1220 Consultations
5.0 on 5.0
1) you can make offer for one time settlement to bank 

2) in personal loan bank does not have any collateral security from borrower 

3) hence if you default in making payment bank may settle with you as litigation is long drawn process

4) if you are threatened by bank officials record the threats 
Ajay Sethi
Advocate, Mumbai
23291 Answers
1220 Consultations
5.0 on 5.0
no need to worry, they have two option to recover their money they may file a cheque bouncing case against you if you issue any cheque against the loan or  they may file any civil suit for recovery aginst you before civil court after issue a legal notice to you, when you received any notice from them then immediately send a reply of the same with the help of the lawyer and you may get more then 2 years to repay the loan in legal fight. nobody can arrest you until & unless warrant of the court.
Nadeem Qureshi
Advocate, New Delhi
3534 Answers
130 Consultations
4.9 on 5.0
first you should file complaint before banking ombudsmen, because creditor shall not be arrested in default of repayment.

thereafter you  should file application before DRT for amicable settlement of loan. DRT shall issue notice to the bank and fix a date for reconciliation.

if bank is ready to accept repayment in installment or give some more time to pay or remove penal interest from the due amount then you'll be exempt from current situation. Bank will sign a new conciliation deed with you and you may be liable to repay accordingly.
Shivendra Pratap Singh
Advocate, Lucknow
2752 Answers
41 Consultations
4.9 on 5.0
Who threatened you with the reported action through police and arrest etc. Do you have the particulars of the person who made this threatening call?, if yes, you can either issue a legal notice to the company mentioning the undesirable threats and activities by the named company's staff or can lodge a complaint with local police about the threatening calls i the name of recovery action.
The company has no right to make such threats, if at all they have to recover the outstanding loan amount they have to approach court of law only and not to resort to such illegal methods. 
How much is the outstanding loan amount?, whether your requests to the company to repay installments have not been considered by the company?
T Kalaiselvan
Advocate, Vellore
14069 Answers
127 Consultations
5.0 on 5.0
The loan was taken and paid 16 installments the last being in 2007, right?
Whether you had any communication or any commitment from your side after that till this date?
The loan appears to be barred by limitation hence they cannot file a money recovery suit, that is why they are trying to use illegal methods to recover the loan amount with the exorbitant interest.
T Kalaiselvan
Advocate, Vellore
14069 Answers
127 Consultations
5.0 on 5.0
1) which year was last instalment paid by you 

2) you have stated you paid 16 instalments which means you have not made any payment after 2009 

3) claim of bank is barred by limitation 

4) don't give any letter admitting your liability to make further payment 

5) if bank files any case for recovery take the plea of limitation 
Ajay Sethi
Advocate, Mumbai
23291 Answers
1220 Consultations
5.0 on 5.0
1. You have taken loan by agreeing to pay interest at a specified rate,

2. After availing he loan duly agreeing to pay the interest at specified rate, youcan not claim now not to pay he same and pay as per your wish,

3. You can certainly refuse to pay the amount which the Bank has charged in excess of the amount which you have agreed to pay,

4. However, the Bank can not harass you illegally by aproaching your office or home. Police will not come to your office to arrest you since it is not a criminal case,

5. The Bank has to act legally and ecover the amount with due process of law backed by Court order,

6. Settle the matter amicably with he Bank.
Krishna Kishore Ganguly
Advocate, Kolkata
12123 Answers
231 Consultations
5.0 on 5.0
1. Do not be scarred about he hreat of police arrest,

2. However, you shall have to repay he amount you had taken on loan with the interest at the rate you had agreed to pay  while taking the said loan.
Krishna Kishore Ganguly
Advocate, Kolkata
12123 Answers
231 Consultations
5.0 on 5.0
1. The best guidance to you is to repay the loan,

2. It is wrong to assume that lawyers can suggest you how to evade repayment of loan. Had thatb trick been known to the lawyers, they themselve would have taken loan and refused to repay,

3. Talk to the Bank and submit a one time settlement proposal depending on your current repayment capability,

4. Banks have provisions to waive interest on certain grounds. try this easiest route first.
Krishna Kishore Ganguly
Advocate, Kolkata
12123 Answers
231 Consultations
5.0 on 5.0
After stopping of repayment interest for more than 6 months and principal amount for more than 12 months converts loan into NPA. 

NPA is governed under SARFAESI Act, your loan might be transferred to recovery cell (generally called recovery agent) but these agents have no power to confine you in order to recover loan. 

file application before debt recovery tribunal (DRT ) for settlement of loan. consult with a good lawyer and initiate proceeding before DRT as soon as possible.
Shivendra Pratap Singh
Advocate, Lucknow
2752 Answers
41 Consultations
4.9 on 5.0
1. Unless there is a warrant of arrest issued against you you cannot be arrested. 

2. The maximum which the bank can do is file a case for recovery against you in a court of law, which you can contest by entering your defence. 

3. If a lawyer's notice is issued to you put it up to your lawyer to have it answered. 

4. These are very common tactics employed by the banks to intimidate the debtor to repay the amount. Do not succumb to it.
Ashish Davessar
Advocate, Jaipur
18158 Answers
449 Consultations
5.0 on 5.0
1. If the loan was taken in 2007 a claim by the bank cannot sustain in the court now. The right of the bank to initiate the legal proceedings is now foreclosed by the law. 

2. Only the bank can either re-schedule the installments, or waive a portion of the loan.

3. Tell the bank to do whatever it wishes to do. The bank will begin with the issue of a lawyer's notice to you which can be answered by your lawyer. Thereafter, if a case is filed against you then you can fittingly contest it in the court. 
Ashish Davessar
Advocate, Jaipur
18158 Answers
449 Consultations
5.0 on 5.0
Hi, you must verify what is the nature of case your banker has filed against you, whether it is a cheque bounce case or Recovery of money.

2, It is better you can contact local advocate for do the needful.
Pradeep Bharathipura
Advocate, Bangalore
4105 Answers
133 Consultations
4.3 on 5.0
A. Don't worry about threatening calls. Normally, Recovery executive would make a call to recover the amount, especially NPA cases by using threatening methods.

B. The bank has two options to recover the amount viz., Presenting security a cheque and filing a suit for recovery of money. When the criminal case was filed under sec 138 for dishonour of cheque that you will have  received a summons and warrant towards the inquiry of the case. Secondly, in civil cases, only summon would be issued to you. In such being, there is no question of arrest from the police.

C. Issue a legal notice to the bank towards the threatening calls and draw the attention of RBI rules and regulations and guidelines to follow at the time of recovery of money.
B.T. Ravi
Advocate, Bangalore
736 Answers
30 Consultations
5.0 on 5.0

Ask a Lawyer

Get legal answers from top-rated lawyers in 1 hour. It's quick, easy, and anonymous!
Ask a Lawyer

Civil Lawyers

T Kalaiselvan
Advocate, Vellore
14069 Answers
127 Consultations
5.0 on 5.0
Ajay Sethi
Advocate, Mumbai
23291 Answers
1220 Consultations
5.0 on 5.0
Ashish Davessar
Advocate, Jaipur
18158 Answers
449 Consultations
5.0 on 5.0
Krishna Kishore Ganguly
Advocate, Kolkata
12123 Answers
231 Consultations
5.0 on 5.0
Nadeem Qureshi
Advocate, New Delhi
3534 Answers
130 Consultations
4.9 on 5.0
Rajgopalan Sripathi
Advocate, Hyderabad
868 Answers
43 Consultations
5.0 on 5.0
Atulay Nehra
Advocate, Noida
436 Answers
15 Consultations
4.7 on 5.0
Shivendra Pratap Singh
Advocate, Lucknow
2752 Answers
41 Consultations
4.9 on 5.0
Ajay N S
Advocate, Ernakulam
1916 Answers
19 Consultations
5.0 on 5.0
S J Mathew
Advocate, Mumbai
1950 Answers
65 Consultations
5.0 on 5.0