I have a huge debt
10 months ago
Dear Sir
I have a huge debt, which is from credit cards and un secured personal loans. Two month before I have lost my job, I am unable to pay the emi for the same. I am approaching the lenders for the settlement but they are saying NO to our face. How do I proceed further, does a common man like me have a legal right to settle a loan ?
A.Dear Client,
Once a bank loan get unpaid for long time by the borrower, the lender Bank marked the said loan as Non-Performing Asset(NPA) and starts a routine procedure for recovery of said debt from the borrower. In your case, despite your voluntary offer for settlement of debts, when the Bank did not consider your offer, you may represent the matter before the Grievance Cell of the concerned Bank and the regulatory authority, RBI, and Banking Ombudsman. In case the matter is not resolved thereafter, then reach out to an Advocate for guidance and steps.
Once a bank loan get unpaid for long time by the borrower, the lender Bank marked the said loan as Non-Performing Asset(NPA) and starts a routine procedure for recovery of said debt from the borrower. In your case, despite your voluntary offer for settlement of debts, when the Bank did not consider your offer, you may represent the matter before the Grievance Cell of the concerned Bank and the regulatory authority, RBI, and Banking Ombudsman. In case the matter is not resolved thereafter, then reach out to an Advocate for guidance and steps.
Helpful
Helpful
Share
A.Dear client,
you can resort to one of the following approaches:
Lower EMI/ Instalment - If financial crunch due to some exigency is the reason for loan default, the defaulter may request the banker to reduce the EMI amount. Although this may result in an extension of the period of paying back the loan. However, it is a better way to pay back the loan and escape any negative outcomes due to inability to pay back the personal/ unsecured loan.
Settlement through Haircut - For genuine customers who are unable to pay back the personal loan, the loan amount is not huge, and it is feasible to settle the same. In such a case, the bank may agree to haircut the loan. Under this method, the bank may settle the dues among the amounts of principal and interest. This way, an escape from non-performing assets can be achieved by both the bank and the defaulter. In return, the defaulter gets a confirmation of freedom from any legal action in the future against the unpaid personal loan.
EMI-Free Phase - In case the financial inability is short termed, the same can be communicated to the banks. In such a case, the bank may allow the debtor to enjoy a EMI-free period which will be certain and the EMIs may carry on after the expiry of the said period.
you can resort to one of the following approaches:
Lower EMI/ Instalment - If financial crunch due to some exigency is the reason for loan default, the defaulter may request the banker to reduce the EMI amount. Although this may result in an extension of the period of paying back the loan. However, it is a better way to pay back the loan and escape any negative outcomes due to inability to pay back the personal/ unsecured loan.
Settlement through Haircut - For genuine customers who are unable to pay back the personal loan, the loan amount is not huge, and it is feasible to settle the same. In such a case, the bank may agree to haircut the loan. Under this method, the bank may settle the dues among the amounts of principal and interest. This way, an escape from non-performing assets can be achieved by both the bank and the defaulter. In return, the defaulter gets a confirmation of freedom from any legal action in the future against the unpaid personal loan.
EMI-Free Phase - In case the financial inability is short termed, the same can be communicated to the banks. In such a case, the bank may allow the debtor to enjoy a EMI-free period which will be certain and the EMIs may carry on after the expiry of the said period.
Helpful
Helpful
Share
Read Related Answers
Repayment of loans and credit cards
Dear Client,
Under the Provincial Insolvency Act, 1920 (which is now repealed as IBC Code 2016), you can file for bankruptcy if you are unable to repay a debt greater than ₹500. After analyzing wheth...
Multiple unsecured loan defaults
Dear Client,
Once a borrower fails to repay his debt, the Lenders/FIs initiate a routine course of action for recovery of the loan/debt from the borrower following the provision under the SARFAESI Ac...
Unfreeze
Dear Client,
Once a cybercrime scam or fraudulent transaction is reported online to the National Cyber Crime Reporting Portal(NCCRP), on the instruction of the Cyber Crime Cell, the investigating tea...
For bank loan
Dear Client,
the loan amount must be repaid by the legal heirs of the deceased or the nominee by the deceased if the assets would be frozen by the bank. there is no other legal remedy to non payment
Bankruptcy and Debt
Dear sir,
You may join any reputed NGO and render your personal service where you can get at least free accommodation and boarding.
Read Blogs on Bankruptcy and Debt
Bankruptcy and Debt Lawyers
Find Lawyers by Location
