Educational Loan - Pdf Download

I had an educational loan of amount 3.6 lakhs (2011-13).they collected my house paper,brother's insurance bond paper.when I checked my subsidy status showing for (2010-11)-Rs.1451 and (2011-12)-Rs 27551 but didn't get for 2012-13 and 2013-14.I was starting to pay EMI from June 2014 to Nov 2015 when I was in job.now I am jobless and not able to pay the EMI right now.what all the legal action bank can take based on my document whichever I had submitted?can I get back my document through any legal process because my amount is less than 4 lakh. they don't have rights to keep my original document?am I eligible for one time settlement..please suggest me what should I do in this situation?

Bank can file a suit for recovery of money from you.
When are you likely to get a job?
Go to bank and explain your problem
.Can you start making some payment at least?
Ask the bank for relief from interest stating that you are jobless and from poor family.
Proof of income will be needed.
Request bank to restructure the loan and extend period for repayment.
Speak to the manager and seek his advice and help.
The moment bank feels you genuinely want to repay but are stuck,they will try to help out.
How much have you repaid and how much balance is left.
Show the bank your payment record when you were in job.

Hi NATHRAO,
Thank you for your reply.
As per IBA guidelines, branches should not demand collateral security, margin and third party guarantee for loans less than 4 lakhs.can I take any legal action against bank to keep my original document.
I have paid around 1 lakh and approx 5 lakh is left.they people are not co-operating.could you please tell me the one time setlement procedure.

Don't think of legal action.
If you have money to initiate legal action use the amount to repay the loan.
When you wanted the loan you didn't bother about IBA guidelines and gave all original documents and now you talk of guidelines.
One time settlement is at bank discretion,please speak to bank and try to settle.
Bank will settle provided they feel what you are telling is the truth and to avoid loss may strike a deal.
It is not mandatory that they accept your contention easily.

If branch auhorities are not co operating you may write the Customer grievance Officer of the concerned bank at their Head Office requesting for allowing some more time for repayment.Please bring it to their notice that as per IBA Model education loan scheme 2015,banks can consider moratorium for reasons such as under employment or unemployment.They may consider repayment holiday of 6 months.Try to find out a job during this period. Having voluntarily given LIC policies you do not have any chance of now fighting with the bank.You have also given your consent to the terms and conditions stipulated by the bank.No court will give a favourable decision in your favour.Moreover going to court means spending good money after a bad cause.Concentrate on how best and how fast you can pay your overdue instalment so that your credit history can improve and in due course credit score.

I am afraid some of the above suggestions are too harsh. It is obvious that the Bank had paid scant attention to the statutory guidelines (please see attachment) while sanctioning the loan. Such guidelines constitute the public policy in sanctioning the educational loan. It is the norm that no collateral security, margin and third party guarantee for loans less than 4 lakhs. It is well settled that there cannot be any term of contract against public policy.

Moreover, even otherwise, consent to the terms and conditions stipulated by the bank could not have been an informed consent. Invariably, while sanctioning the loans the loanee is a minor. It is the general scenario that Bank obtains the signature the student and his guardian ( many of them having little knowledge of English) on the standard terms and conditions (always in English) approach for the Bank for the loan.

In the given scenario there is nothing alarming if the Bank approaches the civil court. It will provide an opportunity to correct the inherent anomalies in the terms and conditions.

Most important in this context is the Rate of Interest. Even though guidelines provide that the Rate of Interest should be the prime lending rate, the banks impose a higher rate.

Thanks everyone for your reply..here my legal action is not related to court.my concern is to approach higher autharity of bank or government through mail or application.
@nathrao I was not much aware about IBA guidlines in starting.now i came to know all these rules through internet..
I want one more clarity whether is any process or chance to get my previous subsidy whatever I missed means during study period plus one year after that.

The application for reimbursement of subsidy has to be submited by your bank to the Nodal bank within the specified period only.Since I do not have details as to which period the subsidy belongs and also whether you are eligible under the scheme or not best way is to put the ball in the court of the banker.Submit an application asking for credit of subsidy. Let the banker say yes or no .If no please do ask for the reasons.