Can unsecured educational loan be transferred to Reliance Arc by bank

I have availed education loan for my 2005 and i was remitting monthly.I transferred rs 2500 to sbi account.They transferred rs 1610 to educational loan account.But they charged more than rs 2200.I disputed from 2010 but no reply received.Later i stopped remitting from 2012.I was told to attend lokadalat there i said i will pay rs 2 laksh (outstanding was rs 3.00 lakhs.They refused.Now they have transferred the loan to Reliance ARC and now they are asking me to repay.I obtained only unsecured loan.Can they transfer the unsecured toan to arc?

Answers (1)

Yes, banks can transfer unsecured/secured loans to ARC through assignment deed, whereby ARCs step in the shoes of banks as creditors and can insist for repayment of dues under the said transferred loan.

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