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Can loan be recovered by bank after 8 years
16-Apr-2023 (In Cheque Bounce Law)
i taken personal loan in july 2008 of 5 lakh divided in 24 month emi (26000 per month emi ) .... due to personal reason i paid 15 installment ( around 4 lakh rupees ) last emi paid on nov 2009... i received bank letter in dec 2009 by ordinary post ...after cheque bounce for loan payment .. my father also co applicant ...last year in 2016 after 7 year (last emi paid) recovery agent come asking for loan pay... he was asking for 6 lakh rupees due to interest and penalty during 7 year.... me and my father denied for that...he never come again and we never commit and reply any latter to bank ... only bank taken 4 cheque in 2008 when given loan ...my question is that can bank recover loan after 8 years or recovery agent creating gimmick that if we not pay loan then bank can sell your home via legal notice ... still i am not receving any leagal notice from court. bank given loan on account balance based not on income tax file.. because we never filed income tax return...
As there is no collateral security for the abovesaid loan, the bank can not forfeit any property. Also, the recovery of the debt is time barred as per the limitation period for filing a civil recovery suit in India is 3 years. Thus, they can not initiate any proceedings against you. Also, they can not do anything as the reasonable time has been lapsed.
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Adv. Siddhant Sharma
Delhi | 500+ Answers
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In cases where there is default and subsequent payments are made, while making payment, you should take a letter from the Bank wherein you need to make sure that the receipts and the letter mentions that they are receiving the payment in full and final settlement/satisfaction. If the words "full and final settlement/satisfaction" words are not mentioned on your receipts, banks normally adjust your payments firstly towards interest and other charges and then they start demanding the principal amount. Since you have last made payment in 2016, you have renewed the defaulted transaction and the Banker's limitation starts from there, the period of initial loan transaction does not arise.
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Adv. Satish Kumar
Hyderabad | 100+ Answers
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