• Banking related issue

We are holding bank loan in HDFC bank. At the time of Covid, HDFC Bank was offering us as per RBI GUIDE COVID Loan. Which we have purchased that loan from the bank. They provide the loan amount in our account., after completing 3-4 months they came with us for the mortgage We had already mortgage with the bank. Now our issue is our loan amount is not more than our both loan For eg. we had taken loan Amount of Rs 1,00,000/-. On that time we have mortgage for the 1,00,000/- Rupees. After the repayment the balance was 75,000/- Now RBI COVID Guidelines they offer us 20,000/- Rupees on the same amount. now they want another mortgage for the 20,000/- See the scenario we had already given them mortgage for the 1,00,000/- Rupees, We have not taken more amount of our mortgage amount. but now they want us to do the mortgage for another 20,000/- Rupees of the loan amount. If mortgage is necessary then why would they release our fund without mortgage? And do they have any rights to deduct the penal interest and other charges to deduct from our account ? without our permission.? So we request you to please guide us that is this possible as per the RBI Guidelines and government rules? If not please give the proper guidelines for the same.
Asked 11 days ago in Business Law

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8 Answers

the borrowers are required to merely submit a request to the lending institutions for being considered under the Resolution Framework. Thereafter, the lending institutions will take an in-principle decision – as per their Board approved policy – on invoking the Resolution Framework. After such invocation, the specific contours of resolution plan to be implemented may be decided by the lending institutions, in consultation with the borrower.

2) it is necessary to peruse terms of loan given by bank to advice 


3) bank can deduct penal interest and other charges if you have failed to pay loan instalments on time 


4) if additional amount is released to you bank would insist on mortgage as per terms of loan 

Ajay Sethi
Advocate, Mumbai
82097 Answers
5158 Consultations

5.0 on 5.0

1. Disbursal of loan depends on the discretion of the bank and the loan agreement define its terms and conditions.

2. Therefore refer to its terms and conditions and see whether the same violates the RBI guidelines or not.

3. If there is any then you can raise this issue with the Banking Ombudsman.

Devajyoti Barman
Advocate, Kolkata
22341 Answers
343 Consultations

5.0 on 5.0

Dear Sir

The bankers always add interest and penal interest and they are entitle to recover the same. For such claims you can not get any relief from any court.

Kishan Dutt Kalaskar
Advocate, Bangalore
5789 Answers
283 Consultations

4.8 on 5.0

Once property for loan of 1L mortgaged, bank cannot ask for another mortgage for 20K. That is against the guidelines issued by RBI.  You can write  to RBI and file a complaint in District Consumer Forum against bank.

Ravi Shinde
Advocate, Hyderabad
797 Answers
7 Consultations

5.0 on 5.0

The penal interest or the charges if any accrued, the bank may take steps to recover the same  and for this they do not have to obtain permission from the borrower or the account holder.

They will intimate the borrower about this  only if there is no funds available to recover the said charges. 

The bank actually should not ask the borrower to furnish fresh collateral for the additional loan amount, but it is to be seen that if the additional loan sanctioned was part of the original loan or it is an additional loan.

If you are aggrieved by the decision of the bank, you may send your complaint to the Banking Ombudsman  and seek relief or discuss with your advocate and initiate legal steps as per law if necessary. 

T Kalaiselvan
Advocate, Vellore
72170 Answers
1078 Consultations

5.0 on 5.0

No its illegal you van send them legal notice through advocate

Prashant Nayak
Advocate, Mumbai
23361 Answers
49 Consultations

4.4 on 5.0

1. If the value of your mortgaged property is more than the total amount of loans taken by you on two accounts, then the Bank has no reason to ask for any further property to mortgage.


2. Penal interest for what reason? Private Banks deduct penal interest  on defaulting loan amount. However, interest on unpaid  penal interest can not be charged.

Krishna Kishore Ganguly
Advocate, Kolkata
25416 Answers
726 Consultations

5.0 on 5.0

Dear sir,

you are required to send a legal notice to the bank and later file a suit against them since they miscommunicated you the scenario, also proper actions were not taken while the process was happening.



Anik Miu
Advocate, Bangalore
1125 Answers
10 Consultations

5.0 on 5.0

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