You must have taken under the tarun loan scheme. Mudra loans are given without any collateral. The branch manager can do nothing in th near future due to covid 19. Talk to the higher ups. It can be converted. They may take legal action but before that engage a lawyer and talk to the bank authorities.

Bank would sue you to recover the outstanding dues with interest 

make an offer under OTS scheme . request bank to waive off interest 

Dont bother. Bank can initiate only recovery proceeding which is civil in nature and Recovery suit takes lot time.

And no bank initiate legal proceeding so soon. Matter will go to recovery agency. Dont inform your present place. 

And tell them to rearrange EMI payment 10k per month and only when receive official response in writing than pay. 

Dont rely on verbal commitments.

No interest levy on account after becomes NPA.

I am not sure what type of loan it was as to whether it was secured loan or unsecured loan.

In both cases you are liable repay the loan . However the rate of interest in unsecured loan is much more than the secured loan.

In both cases the repayment is to be done through EMI  only and there is no scope for one time payment.

The scope for one time payment arises only when you default to make payment of your EMI regularly and the loan account has become NPA.

So negotiate with them and settle amicably.

Otherwise you can be saddled with cases at the end of which you will have to repay the loan apart from bearing expenses to defend yourself in those cases as well. 

 - As per the RBI, the bank should give proper time and offers for the settlement of loan amount.,  on the ground of health and sudden loss 

- If , the bank is not agree to give time, then don’t worry and let them to start legal action against you.

- Firstly, the bank will issue demand notice prior to take legal action from the court. You should reply the same after narrating the whole story of business failure.

- Even, if the bank filed a case before the Court, you will have much time to repay the said loan amount and to settle the matter according your present situation.

- If bank official/people are harassing, then you can do the following for his safeguard.

1. You should lodged your complaint at the police station for harassing & threatening , as law not permits anybody to take the law in his hand. If police refuse, then you can approach the magistrate for the same.
2. You can file an injunction case against the bank and its recovery agents for the direction of not visiting the house or office for the recovery of dues amount of loan.
3. You can file a complaint with the RBI .

Don’t worry, In this way , the bank will itself try to settle the dispute with you. 

- Even if the bank will file the case in Bangalore , but the execution/recovery will take place in Punjab , due to your address /location in Punjab. 

Good luck and dont forget to rating Positively. 

See in case you loan is termed NPA then bank can intimate the recovery proceedings against you, you can request to restructure the emi though if request is not considered then you have to contest same before the court only.

As long as the lockdown continues, the status quo will have to be maintained by the bank

it cannot keep the npa period of 90 days running when the lockdown is existing

the 90 days npa declaration period will remain suspended till the lockdown subsists

once the lockdown is lifted, the 90 days npa declaration period will being to run again until the said period expires when the loan will be declared as npa

once the loan account is declared npa, bank will resort to SARFEASI Act and will put your collateral security in public auction to realise its dues

even prior to that action, you will have 60 days period to repay the outstanding

as of now the emi which you are liable to pay to the bank are hit by the RBI moratorium and thus you are not liable to pay those emis at the moment

You can't do anything if he is not doing settlement. Let him file legal proceedings you contest the case

Yes , you can do so by sending a lawyer's notice on this account. You may feel free to connect for this.

Don’t send any legal notice 

wait for bank to do so then engage a lawyer and reply to legal notice 

Yes you should do so after the lockdown ends.

Let them send legal notice you contest as bank will not settle and expect you to return at one stretch

is it a secured loan or unsecured one?

1. since it is MUDRA loan, therefore, I am considering the same as unsecured loan,

2. bank may file a civil suit for the recovery of the outstanding amount against you,

3. you can offer OTS (one time settlement) if possible or EMI during the case,

Seen in this condition a request letter shall work you can send same to regional office, legal notice shall be of no use.

No demand raise till now, so what is the need to send legal notice. Or send legal notice for mentally harassing you. 

Send from anywhere in India.

1. As per law you shall have to repay the loan you have taken with agreed rate of interest.

2. However, for MSME loans ordinarily Banks take no collateral security and it is insured by the Central Govt for which the Bank will be paid 75% of the outstanding by the Insurance Company.

3. If you have not mortgaged any -property with the Bank for taking the said loan, submit a compromise proposal post Covit circumstances which the Bank is expected to accept.

4. If no property has been mortgaged with the Bank, you won't have to worry for any immediate material/financial  loss.

1.Send a settlement proposal by speed post to the Branch Manager under copy to the Zonal Manager and General Manager informing that you are not in a position to repay the loan at agreed terms because of the changed circumstances.

2. Since there is no mortgage in connection with your said loan which is unsecured, the Bank is expected to accept your settlement proposal. 

All loan now shall become npa after 6 months of non payment instead of present period of 3 months.

So you will get that much time only. 

Except that no other benefit is available amid lock down situation.

Dear Sir,

You are suggested to take some remedial steps for forestalling the action by bank. Pay some amount received from sale of the business. And also ask for reconstruction of loan as per Sarfeasi Act from the bank. Also be sure that banks can't take any coercive action during Apr - Jun 2020 because of guidelines by RBI. 

You have closed the business last year  whereas the covid pandemic occurred only recently, hence you cannot claim any exemption or excuse due to that.

If the loan has become NPA then the bank will recover the entire outstanding loan amount along with the interest due as on date.

You can sit and talk with the bank manager about restructuring the loan and repayment on easy installments (which the bank manager may not agree), after the current lock down is lifted.

If ther conditions of loan do not facilitate you with the EMI options as desired by you now, then the bank may not accept your request.

You cannot issue any legal notice also in this regard because you have no right to threaten the bank by a legal notice especially when you have defaulted in loan repayment.

The proposed legal notice is to instruct bank to accept EMI repayment of loan, whereas such a notice is not maintainable and it may adversely affect you.

Better negotiate with the bank after the current crisis and then look for ways to solve the issue amicably.

Hi

Look, if they initiate any legal action against you then you can put your offer of converting 10000/month emi in front of judge. It might be accepted there.

But you have 3 months moratorium given by the central govt. 

So it means you have atleast 3 months to finalize your further steps.

- Before initiating any legal action against you , the bank will send you demand notice.

- After receiving the said demand notice you should send your reply , otherwise , bank official will not listen your problem , even you will send a legal notice via lawyer.

1. It is the prerogative of bank to restructure the loan on the request of borrower.

2. You have no right to seek restructuring of loan, so sending legal notice is meaningless.

3. If bank files a suit for recovery of money then civil court can pass a decree against you.

Hello,

As per the rbi regulations all bank emi will be upheld for 3 months so the bank manager cannot take any steps against you.

Regards

You should certainly hire a lawyer to reply and to defend you. Do not worry at all time will be managed according to your convenience. But don't delay personal meeting. 

1. Dear you have to pay the loan back otherwise bank will initiate legal proceedings against you.

2. If you can settle the amount in one go then talk to them about clearing the loan under some scheme. 

3. If you cannot pay loan through settlement then send email for request of restructuring the loan EMIs to regional branch of your bank. 

In case of default, the bank can sue you for recovery of defaulted money from you.

You can address your grievance to the Branch Manager alongwith marking copy to his higher officials for their information and involvement and request for OTS by highlighting your position.

You need to have everything in writing, do not believe / rely on the oral assurances from the Bank / its representatives.

If you send legal notice, you have bleak chances.

Let the Bank send the notice, thereafter you can make your move, you will be better placed to bargain with them.

1. As per the information mentioned in the present query, makes it clear that the bank is asking something for which they are legally also to ask for, but also, they should look for your proposal as your intention is never of cheating on them.
2. I would like to advice you that you despite a legal notice, sent one more request through a lawyer so that it may contain some legal language also, and an option for mediation.
3. If still nothing works out then proceed after they file a suit for recovery before the judge, but yes that will be the civil suit not criminal, so no need to worry at last.