Loan against property from Co-operative Society Bank
1 year ago
Dear Madam/Sir,
My father had availed a loan of Rs. 70,00,000/- (Rupees seventy lakhs) from the ap Co-operative Society Bank in Kerala by pledging our commercial building (where my family stays as well in an adjoining house which is a part of the same property). The main source of income in the commercial building is a banquet hall. We had initially made timely repayments against the loan; however due to COVID lockdowns and ban on social gatherings the business was badly affected for two years and no payment could be made against the loans for almost two years. The total outstanding amount has now ballooned to 87 lakhs including interest. The business has recently improved and we have started making payments into the account. My father recently passed away due to illness. Myself and my brother are ready to continue paying the loans. However, shortly after my father's death, the cooperative society has filed something known as ARC against the loan as it was default. We have arranged for some funds which would greatly help in clearing the arrears. However, the bank is now saying that since ARC has been filed, the only option for us is to pay the full due amount, the part payments are not useful. Please guide us as to what are our options and what would be the best option for us to proceed.
it seems the Bank has initiated Arbitration proceedings which are very simple and in summary nature. If u do not clear entire dues they may put your property to public auction. Better go to civil court or high court and get a stay order.