Banking
Legal action can govt. banks take on default education loan
I had borrowed education loan of Rs 4 Lac from PNB Bank in 2007 for pursuing MCA in a reputed institute .I belong to a poor family and the bank issued loan for me without any security on behalf of my merit and my father's pension.It was a joint account including me and my father.Due to recession, I completed MCA without any campus recruitment and struggled a lot for a job.Ultimately,after 1 year of struggle I got a job with only Rs 4,000 salary. The bank is calling my family and threatening them .I am ready to repay the loan ,once I get good income. The interest and principal combined amount is Rs 6 lac now.It will take too much time to repay.The Bank has given me 1 year to settle the whole amount.Otherwise they will file a case against me. The Bank doesn't have my PAN details and any collateral security. Can the bank issue any legal action against me or my family? Can the Bank send me to jail ? Can the Bank spoil my CIBIL score?
By  ullas ahuja  |  09 Mar 2016  |  Upvotes: 0  | 

3 Answer(s)

Vishal Kumar Thakur
Advocate

A borrower is supposed to consider pros and cons if some thing goes wrong in future. The rules are made for all borrowers under the scheme with uniformity, and laid down procedure can not be made to suit one's convenience. The amount advanced is Public money acquired through deposits, and Bank is liable to return those depositor's money, and can not say that as they have failed to collect amount advanced, they can not repay deposits. It depends on discretion of Bank, and Bank has to act as per laid down regulations including attachment of accounts, salary and CIBIL score automatically follows.

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Tushar Bhargava
Advocate

Have you received any demand notice from the Bank ? If you have received it then pray before the Bank mentioning your monthly salary supported by a xerox copy of your pay slip that you are ready to repay 1/3 of your salary against your loan along with interests accrued thereon month by month and every month . If the Bank disagree with that proposal you may file a Writ of Mandamus before the Constitutional Bench of the High Court for relief and redress.

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Harshit Bhurani
Advocate
1. You have taken the said loan from Bank agreeing to the terms of the loan including the repayment terms, 2. The Bank has advanced you the amount from public money deposited with them, 3. Bank can certainly take all legal actions against you including Money Suit against you and duly informing CBIL about your default in repayment, 4. Best course of action left before you is to talk to the Bank Manager in this regard.
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