I and my Husband have availed Morgratge Property Loan from AU Small Finance Bank, Jaipur of Rs 65 lakh in year 2019, amount EMI of Rs 85000 pm to boost my business of readymade garments. I have repaid all the installments on time and all of a sudden Lock Down imposed due to Covid shook the financial stability of my business. Yet I didn't availed moratorium 1.0 and repaid the installments in lockdown too, as I had stock equivalent to the amount I borrowed. But as time went by the stock got sold and we were not in the position to buy further stock and the pressure of this hefty emi started mounting on us. My husband could not bear the repeated asking of money by different collection agents and ultimately committed suicide on January 30, 2021 age 65 yrs. As we were both party in the loan and the demise was un natural I wasn't given any respite from the bank. I heart and mental broken, still got up on the 9th day of his demise and re opened my shop so that I could repay what I had taken. After repaying the loan emi for last 10 months , I am now left with no stock and no money to repay the emi. I requested the bank officials to give me a 5 6 months emi break so that I can borrow some money from relatives and invest in the business and get it going but Not only was I denied but also disrespected. Mean while I tried my level best to sale off my properties but my fate is not letting them sale off. Today I get to know about Moratorium 2.0 and its 6month extension but again was denied saying that it ended on september 30, 2021 and repaid this month emi as well. But now I have no way to repay the next month emi and have decided to go against the bank in the judiciary to seek justice. I am not a defaulter neither I want to be one , I am a self respecting person who don't want to keep the loan on her conscience but I want a chance to stand myself and my business again so that I can clear all this. Respected Lawyers Please help me with this. Santosh Sharma Kalyan Garments Ajmer Road, Sodala
1. File a complaint in the jurisdictional Police Station against the agent/officials of the bank for abetting the suicide of your husband and seeking monetary compensation for pushing your husband to commit suicide.
2. If the Police refuse to register a complaint, you can file a private complaint in the jurisdictional Court to seek justice.
Firstly, accept my heartiest condolences on the death of your husband. May departed soul live in peace.
Secondly, please be informed that your story is the story of almost all the households in India and you are not alone in this situation.
What I need to advise you as per my experience is -
1. Don't take initiative to file case against the bank.
2. Let the bank take legal recourse.
3. On receipt of any notice from your bank, hire a lawyer practicing in Debt Recovery Tribunal and send appropriate reply to the notice.
4. Keep hunt of a prospective buyer and sell the property with the help of lawyer and bank at appropriate time.
5. Take care of your life, health more than the bank loan, worst situation is that bank would take the possession of the mortgaged property and auction it and it would take time by the time you would learn how to overcome with the situation. Life is more important than loan.
6. A good Debt Recovery Lawyer would save you.
7. You have the Will to settle the matter, you would get the way.
8. Don't come in contact with bank and ask them to take legal recourse and meet them with your lawyer only.
9. Sometimes bank officials put unnecessary pressure to withdraw the money but when they are in the court, the Judge hear both the parties and waive /reduce the interest and other unnecessary hidden charges.
10. Be happy. Time will take its own recourse not more than the mortgaged property.
You may have to approach the higher office of the financial institution for restructuring the loan.
If they don't agree but simply keep torturing for loan repayment you may DRT for relief
What is total amount of loan payable ?
do you have detailed statements of account
if you have any other properties seek time for making payment
find buyer for other properties sell them and repay bank
Your intentions and efforts to repay the loan are greatly appreciated. Please negotiate with the bank for a one-time settlement, producing all evidence of your present financial status.
- 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 can 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 his present situation.
- If bank official/people are harassing, then you can do the following for his safeguard.
1. Being a Senior citizen , you can lodged a 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. Further you also file a complaint with the RBI for extension of time .
Send a legal notice to Bank. If you need any further assistance then you can approach me through kaanoon or LinkedIn.
Dear Client,
The government of every state can waive off loan of the small entrepreneurs and in state of Rajasthan the government recently brought a scheme of waiving loan for small entrepreneurs, artisan and weavers. through a one time settlement scheme. There are schemes made by central and state government for loan waive for widow so you can take advantage of that.
Thank You.
To your horror, bank has no concern to your grievance. Bank only business is to recover the loan amount as soon as possible.
There is no retrieve from court to obtain order against the bank to stay it from legitimate recovery.
Eligible borrowers could have applied for the second moratorium till September 30, 2021
Condolences to your grievance but suicide is not the solution.
Only way to obtain relief from court is when you will declared NPA, bank will proceed to auction the property. In that situation only you may approach the court to obtain stay and reach settlement with the bank with the interference of court.
If there is a default in payment of the EMI the bank will issue you a demand notice of 60 days to repay the loan
When you get this notice you will get an opportunity to make your representations
The bank has to consider your representations and intimate you about its decision
If the bank declines considering your representations it will then issue you a possession notice to take symbolic possession of the mortgaged property
Thereafter it will issue a public notice for sale of the mortgaged property by public auction
Before the auction sale the bank will give you a 30 days sale notice to redeem the mortgage before the date fixed for sale
If you do not redeem the property by paying the bank's dues the bank will sell your property
From the sale consideration the bank will take its dues with the auction expenses and balance will be paid to you
This is the only way out
I suggest you approach the High Court by filing a writ petition claiming your right to life under article 21 of the constitution
The high court is the only hope
