Heavy amount debt
8 months ago
I have 36 lakhs debt on my 10 years working career, 13 bank cards, 5 personal loans, ...all together I have paid on time as of now, but last 10 months I was in deep trouble and job loss, family problems, card re-payments with the high rate of interest, and Skill loan fraud happen on me
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. So, to make yourself debt free and keep your CIBIL records clean, you have to repay the entire outstanding amount including interest/penal interest lying unpaid 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 a 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. So, to make yourself debt free and keep your CIBIL records clean, you have to repay the entire outstanding amount including interest/penal interest lying unpaid 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 a 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
As per banking rules, these are the few ways in which banks can help a loan defaulter. In these cases the bank will follow the rules specified as per SARFAESI Act.
LOWER THE EMI: Banks can lower the EMI in two ways: (a) by increasing the loan tenure, (b) by converting non-secured loan to a secured loan. In banking terms it is called as loan rescheduling of restructuring. Lowering of EMI’s due to tenure extension may help few defaulters. But as per bank rules, tenure cannot be increased a lot. As a result, the net effect on EMI reduction is very nominal. But in case of non-secured loan (like personal loan) being converted into a secured loan, reduction in EMI is appreciable.
ALLOW EMI FREE PERIOD: In cases where the flow of income has been temporarily disturbed, this type of relief may help the borrower. Unforeseen issues like job loss, temporary stoppage in business, operation etc, can be addressed this way. Here the banks may agree to waif-off the EMI collection for a certain period of time (say 3-6 months). After the lapse of this period, the EMI payment must start.
ACCEPT A HAIR CUT: There can be a case, where the loan defaulter is in no condition to repay back the loan balance (today or in future). But he is offering to pay a part of the loan. In return for this part-payment, the defaulter is asking the bank to close the loan once and for all. Why a bank should agree for such an offer? Because it is better to get something than nothing. Here the onus is on the loan defaulter to convince the bank to accept the offer. Read more about what it means for banks to ‘take a hair cut’.
FOLLOW SARFAESI ACT: Bank’s will resort to this step only when a loan has been deemed as an NPA. It means, the above three steps has failed. What is SARFAESI Act? The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act. As per SARFAESI Act, banks etc can arrange for recovery of their NPA’s without the need to move to the Court of Law.
As per banking rules, these are the few ways in which banks can help a loan defaulter. In these cases the bank will follow the rules specified as per SARFAESI Act.
LOWER THE EMI: Banks can lower the EMI in two ways: (a) by increasing the loan tenure, (b) by converting non-secured loan to a secured loan. In banking terms it is called as loan rescheduling of restructuring. Lowering of EMI’s due to tenure extension may help few defaulters. But as per bank rules, tenure cannot be increased a lot. As a result, the net effect on EMI reduction is very nominal. But in case of non-secured loan (like personal loan) being converted into a secured loan, reduction in EMI is appreciable.
ALLOW EMI FREE PERIOD: In cases where the flow of income has been temporarily disturbed, this type of relief may help the borrower. Unforeseen issues like job loss, temporary stoppage in business, operation etc, can be addressed this way. Here the banks may agree to waif-off the EMI collection for a certain period of time (say 3-6 months). After the lapse of this period, the EMI payment must start.
ACCEPT A HAIR CUT: There can be a case, where the loan defaulter is in no condition to repay back the loan balance (today or in future). But he is offering to pay a part of the loan. In return for this part-payment, the defaulter is asking the bank to close the loan once and for all. Why a bank should agree for such an offer? Because it is better to get something than nothing. Here the onus is on the loan defaulter to convince the bank to accept the offer. Read more about what it means for banks to ‘take a hair cut’.
FOLLOW SARFAESI ACT: Bank’s will resort to this step only when a loan has been deemed as an NPA. It means, the above three steps has failed. What is SARFAESI Act? The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act. As per SARFAESI Act, banks etc can arrange for recovery of their NPA’s without the need to move to the Court of Law.
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