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Unable to repay loan due to medical emergency, what can be done?
21-Jun-2023 (In Insurance Law)
I took an educational loan in government nationalized bank to complete my graduation in engineering. I was diagnosed with kidney failure and now undergoing dialysis. My entire salary is utilized for my treatment and unable to repay the educational loan. kindly guide me for this situation. Is there any procedure to repay the loan amount without interest on it or will there be any liberation given for me
When you do not repay a loan, it is reported to CIBIL as is. You will be sent reminders and notices for repayment. If you ignore them then your account becomes NPA in the books of accounts of the bank and then their laid down procedure for recovery of poor loans takes course.
Your CIBIL will be updated accordingly with the number of days your account has been unpaid and it will serve a serious blow to your credit standing. Your score will begin to drop massively due to which you will find it difficult to take any loan or credit card in future. In case, due to any unfortunate circumstances, you are unable to make payments as per schedule then take your bank’s branch manager into confidence. Share with the bank the ground reality and ask them to restructure your loan that would allow you to pay a lower EMI. Do remember, the bank may or may not revise the terms of your student loan. It is completely at their discretion. Non-repayment can have long lasting repercussions and you would want to avoid them at all costs. Paying your debts helps you maintain a high creditworthiness, which works to your advantage when you take loans in future.
Your CIBIL will be updated accordingly with the number of days your account has been unpaid and it will serve a serious blow to your credit standing. Your score will begin to drop massively due to which you will find it difficult to take any loan or credit card in future. In case, due to any unfortunate circumstances, you are unable to make payments as per schedule then take your bank’s branch manager into confidence. Share with the bank the ground reality and ask them to restructure your loan that would allow you to pay a lower EMI. Do remember, the bank may or may not revise the terms of your student loan. It is completely at their discretion. Non-repayment can have long lasting repercussions and you would want to avoid them at all costs. Paying your debts helps you maintain a high creditworthiness, which works to your advantage when you take loans in future.
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Adv. Siddhant Sharma
Delhi | 500+ Answers
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