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Yesbank Auto Loan Written Off and Car is seized by Yesbank
09-Dec-2025 (In Recovery Law)
I have an Auto loan and a Used car loan on the same car from Yes Bank. Due to financial constraints, I was not able to pay EMIs on time. I have six EMIs pending, and my car is seized by Yes Bank. However, I paid one EMI on 13th Nov, and yesbank after seizing my car, informed me that both my loan accounts are written off and they cannot release the car without me closing both the loans. They are not ready to accept the Overdue EMI payment and release the car. I have sent emails to Yes Bank.
Your current legal challenge is moving from a missed EMI issue to a full Loan Recovery issue. The bank is prioritizing the clearance of the entire outstanding debt.
Do not solely rely on Emails. Engage a lawyer to send a formal Legal Notice and prepare for filing an application with the DRT if the bank issues a notice for the sale of your vehicle.
Helpful?
Adv. Pankaj Bajaj
Pune | 700+ Answers
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Based on the facts, the bank’s action appears improper. Even if some EMIs were overdue, the bank cannot refuse acceptance of pending EMIs and unilaterally treat the loan as “written off” without due process. A write-off is an internal accounting step and does not extinguish your liability or your ownership rights. Seizure of a vehicle must be done as per RBI guidelines, with proper notice, opportunity to pay, and without coercion. If you are willing to clear overdue EMIs, the bank cannot insist on full loan closure as a pre-condition for releasing the car. You should immediately send a written representation to the bank’s Nodal Officer and file a complaint with the RBI Ombudsman. If required, you may approach the civil court for an injunction or file a police complaint if the repossession was done without due notice. I can guide you further on the next legal steps.
Helpful?
Adv. Pankaj Bajaj
Mumbai | 1000+ Answers
Chat
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