Personal loan and property
I had taken personal loan from barclays finance. I didnt pay emi as i lost job. the loan tenure is finished in 2013 only. Now they initiated some legal action against me. they are letting me that they are going to seal my residential property under the arbitration and consiliation act 1996
it is possible? personal loan is non secure loan. if yes how i will stop this?
Asked 3 years ago in Property Law from Mumbai, Maharashtra
1. Your default in making payment makes you liable to legal action for recovery by the financial institution. When you take loan, you have a contract with the bank/financial institution to repay it, as per the terms and conditions agreed upon. If you do not make payment to the bank/financial institution then it will first issue you a legal notice and ask you to make payment. If you still fail to do so the bank/financial institution will start a recovery proceedings against you which does not take much time. Moreover the mortgaged property can be got auctioned to recover the arrears.
2. Any default continuing for 3 months or more is treated as the non-performing asset of the banking/ finance company. The matter gets reported to the CIBIL, as defaulter/ bad debtor. That affects the credit rating of the defauter, which becomes hurdle in getting further loan from any bank/ finance company. So, to avoid bad credit rating by the CIBIL, my advice is to better repay the loan somehow or the other and or get it re-scheduled.
1) what is the amount of personal loan you had taken ? what is amount of loan repaid by you ?
2) what is the total outstanding amount due and payable ?
3)did your agreement contain arbitration clause?
4) whether any notice was issued invoking arbitration ?
5) whether you have participated in arbitration proceedings ?
6) whether you have any residential property standing in your name ?
please answer the above mentioned queries
default in making payment makes you liable to legal action for recovery by the financial institution
Advocate, New Delhi
1) what is the amount of personal loan you had taken ? what is amount of loan repaid by you ? loan taken 1,75,000 paid-35,000
2) what is the total outstanding amount due and payable ? as bank saying 2,50,000
3)did your agreement contain arbitration clause? i dont know i dont have any agreement copy
4) whether any notice was issued invoking arbitration ? they r saying they sent notice, but i didnt receive any. i inquired in post office also.
5) whether you have participated in arbitration proceedings ? no i was not aware at all
6) whether you have any residential property standing in your name ?yes 1 bhk flat in mumbai
Asked 3 years ago
1) pay sum of Rs 2,50,000 to Barclay bank if you are in position to pay .
2) negotiate with bank to repay loan amount in EMI . or arrive at one time settlement with bank
3) if you dont have funds dont keep any flat in your name . sell if before attaches your flat in repayment of bank loan taken by you .
can they seal my flat under the arbitration law
Asked 3 years ago
They certainly can seal and sell it at a throwaway price.
yes they can attach your flat in execution proceedings . hence i have advised you to sell your flat