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Can i use the security deposit to pay bank loan
29-Aug-2023 (In Banking / Finance Law)
I have taken 2 loans of rs 4 lakhs and 4.5 lakhs respectively from bank. There is not any security deposit on loan of 4 lakhs. But there is security deposit of rs 15 lakh on loan of 4.5 lakh. Now i have to repay the loan of 4 lakh. I want to use security deposit of that 15 lakhs to pay the loan of 4 lakhs. But the bank manager denies. Now is there any way to use that security deposit of 15 lakhs to pay the loan of 4 lakhs ? As security deposit of 15 lakh is comparatively too high for the loan of 4.5 lakhs.
The banker is retaining the security as general lien which he is legally entitled to under banker's general lien under the Indian Contract Act. I would need to see the loan and security documents to assist you further.
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Adv. Rishabh Kapur
Delhi | 25+ Answers
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