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Bank sending notice for delay in revenue recovery for education loan


08-Jul-2024 (In Recovery Law)
Sir, My sister had a educational loan(amount of 2.65L) for studying Bsc.Nursing from SIB.and after that she got her job as trainee and she paid 1.65L ruppes within a period of 2 years. After that she got married and went to pregnancy. So that she made a gap for paying the loan. The manager of that time send us a revenue recovery notice for delaying the repayment. But we didn't pledge any of our property to the bank. Now I am facing problems for my future studies. Because any of the nationalised bank doesn't giving me a loan for education. Due to sibilling loan. Can a bank send RR notice for delaying educational loan repayment. They call us for adalat. But before that they send the RR notice. Please give me any legal advice related to this ASAP. Now she applied for elrs program of govt. But my question is can they send RR over educational loan? what is the rbi rules for education loan recovery ?
Answers (2)

Answer #1
516 votes
Education loan is similar to any other conventional loan but for the difference that there is no collateral security and further that there is an initial sleeping period when repayment need not be made. Some education loan account are eligible for central and state subsidies also if repayments are properly made. After the sleeping period, repayments are to be made on a regular basis. Since there is no collateral security bank can initiate Revenue recovery proceedings against the defaulter when the account is classified Non-performing. It will be advisable to avail the benefit of settlement through adalath as the bank can waive penal interest and other charges if settled through adalath. Contact directly for any further assistance.
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Advocate Murugan E.M.

Adv. Murugan E.M.

LawRato Ernakulam | 25+ Answers
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Answer #2
976 votes
Loans are meant to be repaid. It is a fact that your sister had obtained the loan and she is bound to repay them ( be it any kind of loan). Govt. brought the education loan scheme to help students to obtain loan without collateral security and low interest rate. That doesn't mean one can obtain loan walk scoot free. Now to your question yes bank can attach property, if its in your sister's or in guarantors name. If the guarantor to the loan is your father then bank can attach the property . It is advisable to settle the loan at Adalath. To be eligible for ELRS you have to fulfill some criteria. If not eligible approach the bank since its march the end of a financial year they will have some attractive schemes too. Don't prolong the case as interest are multiplying. On the other hand you sister is protected from facing any cohesive action from bank like arrest.
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Advocate Francis Peter Tharakan

Adv. Francis Peter Tharakan

LawRatoErnakulam | 25+ Answers
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