Legal Question in Banking Law in India

11.02.2015

Dear Sir / Madam,

You need to face the fact that the Bank is going to levy interest on the loan you have availed for purchase of the equipment from the date the loan amount has been transferred and credited to your A/c till the date of full repayment, settlement and closure of the loan A/c. Should you feel that the Bank has undervalued the repossessed equipment since it is relatively new having been used for 9 months only, as already advised earlier, you can insist on the appointment of a Government approved valuer to survey, assess, and independently Report on the factual present value of the equipment lying in the Bank's custody. You should negotiate and settle the difference between the total net outstanding loan amount minus the Government approved valuer's Report and avoid Court hassles, simply because if you drag the issue to Court, your CIBIL rating will remain negative till the Court decides the matter.

Regards,