ARC is asking to pay the entire loan without considering which is paid

In Recovery Law

My friend got an education loan from a PSU. He paid 1/4 of the loan amount and later got a interest subsidy. Due to some financial problems he was not able to pay few EMI and was sold to the ARC for recovery. Now the ARC is asking to pay the entire loan amount without considering the amount that was already paid. And also they are not ready to provide any legal document like the amount to be paid in a document, statement of account for the payment that would be made, and they are saying that NOC will be provided after 15 days of closure. But everything in words, no document what should we do

Answers (1)

164 votes

You can approach the financial institution and request them to provide you with a different payment plan. You are bound to pay back the dues that you owe to the Financial Institution. You only owe the amount that is left to pay. The financial institution cannot use any recovery agents to recover the due amount. You can file a complaint in any police station if the financial intuition is using any recovery agents for recovery of the dues. Loan amount can only be recovered by filing a recovery suit under CPC.

Googling your legal issue online?

The internet is not a lawyer and neither are you.
Talk to a real lawyer about your legal issue.


Popular Recovery Lawyers

Advocate Sunil Kumar Bakshi
Sector-16, Faridabad
36 years Experience
Advocate Rajesh Rai
Sector-19, Dwarka, Delhi
23 years Experience
Advocate H Gouri Shankar
Banjara Hills, Hyderabad
27 years Experience
Advocate Suksham Aggarwal
District and Sessions Court, Ambala
10 years Experience

Report abuse?

Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at and has been responded by one of the Recovery Lawyers at to address the specific facts and details. You may post your specific query based on your facts and details to get a response from one of the Lawyers at or contact a Lawyer of your choice to address your query in detail.

Comments by Users

No Comments! Be the first one to comment.

" has handpicked some of the best Legal Experts in the country to help you get practical Legal Advice & help."