Education Loan

5 years ago

My son had taken education loan of 7.5 lacs for his education in the United Kingdom. He completed his studies but had to come to India as his visa was not renewed. He did not get a suitable job and had to start working for call centre where he was drawing only 20000/-. Uptill the time I was warking, I paid his instalments of Rs.21000/- per month for about 2 years. Thereafter due to financial loss in business, I could not continue paying.
At the time of taking loan, he was 17 years 8 months (minor) and has not signed any of Bank agreements. I had signed as guardian. Is he liable along with me? Bank has filed recovery suit in DRT for 11 lacs. Plz guide me

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Kishan Dutt Kalaskar

Responded 5 years ago

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A.You are in dangerous situation. Your son who is major also liable. Get insolvency certificate.

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Abhimanyu Shandilya

Responded 5 years ago

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A.Yours will be an interesting case to watch out for. A minor, first of all, cannot be given loan and if given then the minor cannot be forced to repay the loan. The Bank has already given the loan and will be difficult for them to coerce or take any legal step to force your son to repay. You being a guarantor they may armtwist you but you don't lose your ground. As suggested by other learned lawyers bargain with the bank and get this closed.

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Ved prakash Shaw

Responded 5 years ago

A.Request the bank for one time settlement to waive out complete interest.on your poor financial ground.or u may request the bank to charge lowest minimum interest rate on principal amount.If no property is mortgaged,then don't worry.keep bargaining with the bank.Bank will finally may accept your proposal

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Ambrose Leo

Responded 5 years ago

A.The Bank can exercise the education loan from the beneficiary of loan & guarantor or guardian individually or jointly as the case may be.Better to consult a Lawyer from the panel of vidhikarya to protect your interest quickly.

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Nirmal Chopra

Responded 5 years ago

A.As aatter of principle, minor cannot be held accountable. However go through the terms and conditions of loan agreement also

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