Loan Settlement - loan taken from different banks
8 months ago
Good Morning Sir,
I want to know how to get settled from personal loan taken from different banks / financial institution but due to some reason I am now unable to pay the huge emi every month. Is there any provision of law to pay with a minimum amount where my income is Rs. 3 and emi is Rs. 10
A.Dear Client,
Once the EMI against a loan is not repaid for consecutive 3 times by the borrower for any reason whatsoever, it is treated by Bank as NPA. Accordingly, Bank sends notice to Borrower asking him/her for repayment of the entire dues lying against your loan offering suitable terms. In the absence of any response from the Borrower, Bank started the routine process of action prescribed under relevant laws for recovery of debt lying outstanding against the Borrower and the Guarantor. You can make a prayer to the Bank for some more time to settle the dues but cannot escape yourself from your liability of repayment of your loans for any reason whatsoever. Moreover, legal actions may also be taken against you that includes filing a civil suit in court or initiating criminal proceedings against you. The banks may also make use of debt recovery tribunals in order to recover the dues they are owed from the defaulter borrower. However, you may negotiate or settle your dues against loans by following the steps like lowering your interest rate, arranging for a reduced interest rate is one of the most common requests defaulter borrower can make to the Bank, creating a repayment plan or extending the tenure of repayment of a loan, looking for debt forgiveness. considering loan consolidation, offering a one-time settlement payment. Following these steps, you may write an application requesting for settlement of dues to the concerned Bank stating why you cannot repay your outstanding dues lying against the loans. Also, write that you want to explore alternative repayment terms. Specify the amount that you can pay, as well as what you expect from the creditor Bank in return. A good starting point for negotiation could be offering around 30% of the amount that you owe. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path to resolve or settle the matter.
Once the EMI against a loan is not repaid for consecutive 3 times by the borrower for any reason whatsoever, it is treated by Bank as NPA. Accordingly, Bank sends notice to Borrower asking him/her for repayment of the entire dues lying against your loan offering suitable terms. In the absence of any response from the Borrower, Bank started the routine process of action prescribed under relevant laws for recovery of debt lying outstanding against the Borrower and the Guarantor. You can make a prayer to the Bank for some more time to settle the dues but cannot escape yourself from your liability of repayment of your loans for any reason whatsoever. Moreover, legal actions may also be taken against you that includes filing a civil suit in court or initiating criminal proceedings against you. The banks may also make use of debt recovery tribunals in order to recover the dues they are owed from the defaulter borrower. However, you may negotiate or settle your dues against loans by following the steps like lowering your interest rate, arranging for a reduced interest rate is one of the most common requests defaulter borrower can make to the Bank, creating a repayment plan or extending the tenure of repayment of a loan, looking for debt forgiveness. considering loan consolidation, offering a one-time settlement payment. Following these steps, you may write an application requesting for settlement of dues to the concerned Bank stating why you cannot repay your outstanding dues lying against the loans. Also, write that you want to explore alternative repayment terms. Specify the amount that you can pay, as well as what you expect from the creditor Bank in return. A good starting point for negotiation could be offering around 30% of the amount that you owe. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path to resolve or settle the matter.
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A.Dear Client,
If you are facing financial difficulties and are unable to pay the full EMI on your personal loans, you have a few options to explore. It's important to communicate with the banks or financial institutions as soon as possible to discuss your situation and find a viable solution. While there may not be a specific law that allows you to pay a minimum amount, there are some alternatives available:
Loan Restructuring or Repayment Plan: You can contact the banks or financial institutions and request them to restructure your loan or offer a repayment plan based on your current financial situation. Many lenders offer options like extending the loan tenure, reducing the EMI amount, or providing a moratorium on payments for a specific period.
Negotiate with Lenders: Be open and honest with your lenders about your financial constraints. They may be willing to work with you to find a mutually beneficial solution, such as a reduced EMI or a temporary waiver of penalty charges.
Debt Consolidation: If you have multiple loans, consider consolidating them into a single loan with a lower interest rate and extended repayment tenure. This can help reduce the overall burden and make it more manageable.
Sell Assets or Seek Additional Income: If possible, consider selling assets or finding alternate sources of income to improve your financial situation and meet your loan obligations.
Insolvency and Bankruptcy Code (IBC): As a last resort, if your financial situation is severe and you have multiple debts, you can explore the possibility of declaring bankruptcy under the relevant provisions of the Insolvency and Bankruptcy Code (IBC).
Thank You
If you are facing financial difficulties and are unable to pay the full EMI on your personal loans, you have a few options to explore. It's important to communicate with the banks or financial institutions as soon as possible to discuss your situation and find a viable solution. While there may not be a specific law that allows you to pay a minimum amount, there are some alternatives available:
Loan Restructuring or Repayment Plan: You can contact the banks or financial institutions and request them to restructure your loan or offer a repayment plan based on your current financial situation. Many lenders offer options like extending the loan tenure, reducing the EMI amount, or providing a moratorium on payments for a specific period.
Negotiate with Lenders: Be open and honest with your lenders about your financial constraints. They may be willing to work with you to find a mutually beneficial solution, such as a reduced EMI or a temporary waiver of penalty charges.
Debt Consolidation: If you have multiple loans, consider consolidating them into a single loan with a lower interest rate and extended repayment tenure. This can help reduce the overall burden and make it more manageable.
Sell Assets or Seek Additional Income: If possible, consider selling assets or finding alternate sources of income to improve your financial situation and meet your loan obligations.
Insolvency and Bankruptcy Code (IBC): As a last resort, if your financial situation is severe and you have multiple debts, you can explore the possibility of declaring bankruptcy under the relevant provisions of the Insolvency and Bankruptcy Code (IBC).
Thank You
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