I had taken an educational loan for doing my PhD. I had initially availed the loan for three years. I sent them two letters stating that my educational period is increasing and i want my loan period to extend. The then bank manager told me to finish my degree and then contact the bank and repay my loan and it is not a problem. But after finishing when i approached the bank they told me that i was in default list and are asking me to pay 50000 above my loan and my loan in EMI ( as per original repayment agreement i have still 26 months to repay)and they have also seized my account. I dont understand why i should pay the extra amount I am ready to repay the amount in 26 months but they will not accept it and are blocking me from repayment. Kindly suggest me some remedy.
2 Answers from Attorneys
Send an appeal to the chairman of the bank and request him for the necessary relief. if he does not redress your grievance make a complaint to Banking Ombudsman.If it is a nationalised bank you can file a writ petition in the High Court.
Dear Sir / Madam,
The extra amount of Rs. 50,000/- that the bank is asking you to pay is towards interest for stretching the repayment period of the loan period. For example, if the original loan was sanctioned for a repayment term of 5 years, and for whatever reason you wish to get the repayment period extended to 7 years, the bank is legally entitled to recover the differential interest for the extended repayment period of 2 years. Checking the interest workings at the bank is recommended.
Related Questions & Answers
I have taken an education for some PSU Bank and my father is the coobligant who is... Asked 7/29/13, 7:00 pm in India Banking Law
WE HAD SUBMITTED OUR PERISHABLE EXPORT DOCUMENTS TO ICICI BANK ON APRIL 5,2013,THEY... Asked 7/29/13, 8:51 am in India Banking Law
My freind had taken a peronnel and agent said no to worry for document he will do... Asked 7/29/13, 2:44 am in India Banking Law
I had given loan to a friend, who is a govt official in delhi. at that time he gave... Asked 7/28/13, 7:04 am in India Banking Law
Hi my question is can a resigned person have right to claim bonus? i have the... Asked 7/26/13, 5:35 pm in India Banking Law