Legal Question in Banking Law in India

I had taken a car loan taken from a private finance ( India, Kerala). I told them i am surrendering my care. But they didn't taken back. Now it has 10 installments pending. any how i have to surrender only.

Can i pay the pending installments while surrendering?.

Any legal issue will come while surrendering?

If I am surrendering without paying pending amount in future they will go legal way?

I am requesting you to answer.

Asked on 2/04/14, 9:12 pm

2 Answers from Attorneys

Dear client,

If you clear off the loan by paying the entire amount as on due today, the insurance company may charge a small amount towards premature closure charges and they will issud certificate addressing RTO to cancel the finance endorsement(thismay take time depending up on where the HO is situvated).

Secondly if you surrender the vehicle to the company, take an inventory of the materials in vehicle with serial no.s of tyrrs battery stereo and mico minute details along with photographs and km reading for your safety take a photo of the offcer with vehicle to whom you surrendered the vehicle.After taking posession of the vehicle by the financer. They will have to send the vehicle for valuation by an approved valuer and a valuation certifcate is tsken and the company will put the vehicle in auction after informing the cuztomer and the valued price as minimum price. If the vehicle is sold, company will look into the acconts of the customer and adjust the amounts if there is due to customer they will return the amount to customer or there is loss to to the company the company will take steps to recover the amounts from customer. In almost all cases of auction the customer will fall in trouble and emd in case and in majority of th cases the customer will be forced to settle the matter by paying cash,since the company is having all documens and in superior legal psition.

So it is better to close the loan and obtain receipts and also on the loan passbook, do not keep the passbook in finance company under any circumstamces. Get the NOCfor cancellimg finance endorsemet and clear RTO records. Do not forget to collect your insirance papers from finance company. If you need any clarification please call on 09387714156 any time. (Reasonable Professional charges are to be paid for clarification over phone by account transfer).

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Answered on 2/05/14, 1:44 am
Rajiv Gupta +91 9811284735 KarVai Legal Solutions

approach a local lawyer send a legal notice of surrendering and adjustment of installment.

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Answered on 2/06/14, 12:15 am

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