• Deferment of EMI

I have 3 personal loan EMI with different banks. Due to unpaid salary by employer(Jet Airways) i am unable to pay these. I am looking out for a job but that would take time. I read about EMI deferment but banks not helping. Is it possible to defer EMIs for 3 months?
Asked 5 years ago in Civil Law

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14 Answers


as of now only a request to bank can help you and in case you default the EMI then they may initiate the recovery.

is it a mortgaged loan or not?



Anilesh Tewari
Advocate, New Delhi
18069 Answers
377 Consultations

5.0 on 5.0

Dear Client,

No such deferment option while default in EMI`s. After 3 continuous default, account will declare NPA than no interest chargeable. Than will get enough time to repay as recovery proceeding is too lengthy.

Yogendra Singh Rajawat
Advocate, Jaipur
22551 Answers
31 Consultations

4.4 on 5.0

As you have availed loan with other facilities you have to repay the loan amount you cannot escape the liability to pay loan. But you can obviously request the bank for settlement of your account which is totally their discretion to do. Legaly there is no way but there are certain ways and tricks. 

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

What risks covers under insurance ?  Who is asking you to raise loss of job, manipulate the reason.

Yogendra Singh Rajawat
Advocate, Jaipur
22551 Answers
31 Consultations

4.4 on 5.0

When you took loan you executed a loan agreement which contained all the relevant terms and conditions and the same is binding upon both of you.

So any changes on repayment can only be done by making restructuring the loan by making a fresh agreement.

So talk to bank and make your own representation.

If the bank does not agree on this and you default in making the payment, the bank can initiate both civil and criminal proceeding to recover the same.

Devajyoti Barman
Advocate, Kolkata
22644 Answers
474 Consultations

5.0 on 5.0

Dear Client,

Please, Cooperate with Bank to Solve the matter. Convince the Bank that you are not delaying intentionally. Even then if they file a suit for Recovery, Please, tell the Court about your job loss and Promise before the court for providing you more and reasonable time to pay EMI.

Jaswant Singh
Advocate, Gurugram
929 Answers
2 Consultations

4.8 on 5.0

Dear Sir,

No, it is not possible to defer or stop personal loan EMI for any length of time. This is usually possible with an education loan, while still in the moratorium period. However, it can not be done with a personal loan. If you are finding it difficult to repay your loan, you can consider getting a Balance Transfer to reduce your EMI by 10-15%. A Balance Transfer would allow you to take the advantage of a lower interest rate.

Netravathi Kalaskar
Advocate, Bengaluru
4952 Answers
27 Consultations

4.8 on 5.0

you cna request bank to reschedule loan as you lost your job due to closure of jet airways 


2) if bank refuses let it take legal proceedings 


3) suit for recovery of loan dues may take some years to be disposed of if you contest the legal proceedings 

Ajay Sethi
Advocate, Mumbai
94200 Answers
7427 Consultations

5.0 on 5.0


I presume you have not issued any post dated cheques


if bank refuses to reschedule loan let it take legal proceedings 

Ajay Sethi
Advocate, Mumbai
94200 Answers
7427 Consultations

5.0 on 5.0

Dear Sir,

Ask them to approach the Civil Court by issuing a legal notice. Now they cannot harass you as per following judgment.


 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 recovering dues.

Keep these rules in mind while facing a loan recovery agent

Know the facts

Banks may have an in-house collection department or they may outsource the job to a third-party collection agency. Keep in mind that no bank likes non-performing assets, or bad debts, on their balance sheet. A debt becomes bad when it’s not paid for three consecutive months.

“Usually if the debt is unpaid for a month, the collection team sends reminders or calls up the customer for recovery. However, the delay in payment could just be an oversight on the borrower’s part,” said a senior banker with a private sector bank, who did not want to be named. “But when the debt becomes 90 days overdue, we initiate recovery agent visits.”

This, however, depends on a bank’s policy.

In case you are unable to repay on time, it’s best to tell the bank about your situation. If you have a genuine reason, the bank may be willing to work towards a solution. This also depends on the bank’s policy.

“A credit card debt can be easily converted into an EMI instead of total loan outstanding amount,” said the senior banker cited above. “The bank may even restructure a loan in some cases. Of course, this also depends on your past payment record.”

Handling agents

Keep in mind that at times recovery agents have big targets to achieve and may also have incentives linked to the number and volume of collection. So they are a motivated lot and handling them isn’t easy.

Know the rules: You, as a debtor, have certain rights. Knowing those rights will help you handle a recovery agent.

Identity: You can ask the recover agents to show their identity cards issued by the bank or under the authority of the bank.

Privacy: You have a right to privacy. The recovery agent cannot discuss the debt to another person. So don’t panic if he threatens to tell neighbours or co-workers about your debt. If he does so, you can file a complaint against him with the bank.

Time: The recovery agent should contact you between 7am and 7pm. However, if your working hours or work shift does not permit this, you may be contacted beyond this time limit.

Calls: You can choose the place and time for receiving recovery calls. You can also request them to not call you at a particular place or time. For instance, if you don’t want to receive calls at work, specify the same to the agent or the bank. Keep in mind, they will respect your request only till they feel you are not avoiding them.

Decency: The recovery agent has to talk to you in a decent and civilized manner. No abusive language should be used. Also, the written communication sent by the banks should be easy to understand.

Investigation: If you file a complaint against a recovery agent, the bank needs to investigate the matter. This makes recovery agents accountable for their collection practice.

Inappropriate occasions: If there is a death in your family or any such event, you can tell the agent not to call you or make visits for a few days.

Records: Banks document the content of conversations between customers and agents along with the time and number of calls. Banks also need to keep all copies of communications sent to customers.

Disputes: If you face any dispute or differences regarding dues, seek assistance of the lender.

Seeking help

There could be various reasons for you not being able to pay instalments on time— medical conditions, job loss or a twin-income family becoming a single-income household. Macroeconomic factors such as high inflation or rising interest rates, too, can be the reasons. If the reason for non-payment is not temporary, it’s best is to approach credit counselling agencies and seek help. “We provide free credit counselling for those who are struggling to get out of debt,” said Narayanan Raja, chief executive, BCSBI.

Debt counselling agencies such as Abhay and Disha also offer such services for free. If you are uncomfortable going to these centres, you can avail counselling over telephone which also is provided without any cost.

Recourse if harassed

If you think the agent is not following any of the above mentioned rules, you should file a complaint. Raja said, “If a borrower thinks he is being harassed, he should first approach the bank, and if not satisfied by its response, he should get in touch with the banking ombudsman.”

Though rules have been laid down to assist borrowers, it is best to rework household budget and make provisions to accommodate the unseen change in the repayment amount.

The bank can sue you on defaulting the credit card payment. It cannot amount to criminal liability as it would be considered as non payment of loan which will constitute as a civil act by nature.

The Banks and Financial Institutions can lend money even without security, normally, the Banks and Financial Institutions insist for security for the repayment of loan. The fixed assets, receivables etc. can be securities acceptable to the Banks and Financial Institutions for sanctioning the loans. The loan entitlements, the procedure for sanctioning the loan, the security issues etc, are exclusively governed by the guidelines/norms issued by the Reserve Bank of India.

Loan being an agreement or understanding between the Bank and the borrower, the general laws like Law of Contract, Transfer of Property Act, Specific Relief Act, Specific Performance etc., are applicable to all banking transactions depending upon the nature of transaction. When a borrower fails to repay the money to the Bank, what the Bank can do for recovering the loan is to file a civil suit earlier.

in India the remedy available to lenders has been to file an ordinary money suit for recovery against the defaulting borrower for the outstanding amounts or to file a summary suit as provided for under Order 37 of Code of Civil Procedure 1908


Kishan Dutt Kalaskar
Advocate, Bangalore
6135 Answers
481 Consultations

4.8 on 5.0

You can inform the bank about same they can extend the period. 

Prashant Nayak
Advocate, Mumbai
31550 Answers
168 Consultations

4.1 on 5.0

The banks may not entertain any such requests. 

If they refuse to accept your request then you may remain silent, let them take  legal action as per law  after which you can pay the same in installments in the court of law once they approach court for recovery of loan amount

T Kalaiselvan
Advocate, Vellore
84399 Answers
2131 Consultations

5.0 on 5.0

Insurance on loan is only effective on the death of the borrower, hence you may wait for the bank to take any action in this regard, they may approach civil court for recovery, at that time you may request court to accept the same in easy installments.

This is the best option before you for the present.


T Kalaiselvan
Advocate, Vellore
84399 Answers
2131 Consultations

5.0 on 5.0

Yes because the process is that you can defer your EMI for three consecutive months thereafter bank will send you the legal notice and then process of recovery of loan starts so you can defer for 03 months but bank will charge interest. For more time you write a letter to branch manager giving all the details of closure of Jet Airways and suggest what is your plan to repay the loan , bank will discuss with you and then proceed accordingly. 

Koshal Kumar Vatsa
Advocate, Gurgaon
2283 Answers
3 Consultations

5.0 on 5.0

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