Legal Question in Banking Law in India


I'm from west bengal,mailed you about the house building loan from district cooperative bank 2.6 lac.In response of my query you advised me to settle and repay the outstanding loan amount.Thanks for your previous advice.

Presently they showed the outstanding loan amount is 4.73lac aprx which is more burden to me so is there any option to repay the half of the money of total interest???is there any law to prevent primarily/temporarily to stop them to take possession of my land??? Actually I,m a widow women with 1 son & 1 daughter for that i became helpless and this property is my least asset. One of my neighbour told me about the LOk Adalat,is it will be helpfull to go there for settlement my case???

I seek your advice.kindly give me advice...

Thank you

Asked on 10/19/13, 7:46 am

1 Answer from Attorneys

Fca Prashant Chavan Expert Edge LLP


Dear Madam,

You should thoroughly check the loan outstanding workings as the bank has a tendency to levy interest on interest and inflate the total outstanding amount due from you. You also should check and confirm whether the bank has applied the correct rate of interest as agreed at the time you availed a loan from them. Actually, the interest rate of co-operative banks for personal housing loans is supposed to be lower than nationalized banks.

If you cannot repay and settle the entire loan amount in one stroke, you should inform the bank about how and when you are going to settle of the loan repayment and convince them to wait until you settle off the entire loan in two or three installments.

Going to the Court will be a time consuming affair and you will unnecessarily spend on lawyers and the long time taken for the Court to decide the matter, which is not at all recommended.


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Answered on 10/19/13, 8:42 am

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