Failed to pay personal loan EMIs
Last year 2015 I lost my job in the month of May. I had a salary account in a private bank. After 2 months of loosing my job my salary account automatically converted to saving account. Then in the month of November 2015 I got a call from my bank stating that there is pre-approved personal loan offer. First i refused to take the loan. But I used to get calls from the bank executive for loan. So I went to the bank thinking that I can use the loan amount to start a business. When I reached the bank the bank executive told me about the loan offer. But I said I have lost my previous job and currently I am not doing any job. But the bank executive told me no problem sir you can take the loan; just give the address and phone number of your previous company. Then I called one of my colleague from my previous company and asked him to give me the office phone number and I gave that phone number and office address to the bank executive. After that the bank executive processed the loan of 3.5 lakhs for 36 installments. Then I used the loan amount in my business and also for the bank installments. Unfortunately my business didn’t go well. Till now I have paid 10 installments. Now I am going through financial problem and not able to pay the loan installment. Now the bank started chasing me for the EMIs.
Please advice me what should I do and what legal procedures can bank take against me.