Bank charging penal interest without any default. What should I do?
06-Mar-2023 (In Banking / Finance Law)
Hello!! I have a property in faridabad, which we have a Home Loan from a bank. The loan was taken for 12 Yrs. The Loan was on my son's name. He died 4.5 years later. The loan was not secured by insurance. Soon after my son's death i submitted an written application to bank to transfer the loan to my other son as I was about to retire. I retired in 2008. The bank did not respond for more than a year. I moved to DRT 2009. It is now an NPA and banks want to settle so do we. But bank is adamant on penal interest for non payment. As i mentioned I did every possible thing to inform bank about my inability to pay post retirement and transfer the loan to my other son. What should I do that the bank does not charge me with penal interest. Many Thanks.
Bank has not responded to your request for long time and have committed anegligence on his part for which bank is liable under deficiency of service, but at the same time, payment was also to be made on time, as the property of the customer is involved in the matter. However the facts can be presented before Drt on equity basis to get the relief.
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