What steps a bank can take agaiinst a man who took personal loan & left country permanently?
I have taken personal loans with 2 major banks in India and used it for migrating and settling in Australia, I have been paying monthly personal loan instalments but now since I am unemploed in Australia, not in a position to pay back monthly installments
My intention Is not to cheat indian banks but it's bad situation financially, doing dirty jobs to survive only in hope of get good job sooner or later
I have permanent visa, so I may not be returning to India,
so if I don't pay my monthly loan installments to Indian banks... what steps Indian bank can take against a person who left the country permanently?
I have Given post dated cheques and signed the loan agreements
can I simply get rid of these loans if I don't ever return to India
or is it advisable to write a letter to bank requesting more time to payback?
- GeepeeLv 51 decade agoFavorite Answer
I don't know whether bank has any other security or a third party personal guarantee. If it has, the bank will encash such security. If it is a personal loan without any security, then bank can and most probably will, file criminal complaint against you u/s 138 of Negotiable Instruments Act for dishonour of cheques. If you do not appear in court, bank will obtain ex parte order and may send it to Australia for its execution. Possible consequences can be devastating for you. If would be far better to write to bank (more so since you have no intention of cheating), explaining how you have fallen on bad times and asking for moratorium (postponement of repayment) on your loan. Give bank a specific time frame in which you intend to do something about repayment.
- 1 decade ago
the first tenet of the loan is . you sleep over the loan does not.
the second tenet is debtor should find the creditor.
now look at your loan. it is from two banks . when you take a loan from a bank and apply for another you must inform both banks and normally there is a condition that you will take permission from the first bank. if that is not done . the second bank loan is a criminal liability.
you have given post dated cheques if they bounce . you again have criminal liability as well as civil liability.
now what is the information you have given to the bank about your place at present.
they can also get an open warrant against you, if they do not find you for a long period, from the court.
in your absence the suit the bank files will get an exparte decree against you.
if the bank starts the execution , all your dreams may shatter ,
now what is the amount of personal loan. to be practical. bank will show interest only if the loan amount is parallel to the cost of the litigations and effort , counting your economic conditions. but it is not necessary.
dishonesty may let you enjoy for some time.
- bhandariLv 51 decade ago
Was not this clause written in your loan contact?
You just send an application to the bank showing explicitly the reasons. I hope you will not be blacklisted. You can reestablish your credit if you even do not payback the loan within the due date.But I believe the bank will allow to extend the period for some months and but not to the extent as per your request. If you do not come back to India then I think banks can do nothing against you because of the reason that they do not go ahead like a log upon the horse.Source(s): The banks wont spend more for the recovery.
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- v_kshemkalyaniLv 41 decade ago
It is better for you to contact the banks from India who has given personal loans to you, and convey them in writing about your inability to pay the installments of loan taken by you, file a suite for claiming bankruptcy, the court from India will declare you bankrupt, so that you will not be punished for not paying the loan,(you will never be freed from paying back the loan),because you will have to accept at least minimum amount of loan premium to the bank, because nowhere in the world any bank lets go free the person who has taken loan.
- 1 decade ago
While your file processing you might be given some reference numbers they will be in soup now for your information. If they reveal your information the bank may have a branch in australia to take up the issue or else based on the amount they will charge you with law by contacting the visa office of australia... So its better to get contact with the bank and resolve the issue at the earliest.
- Amarnath CLv 71 decade ago
Now a days its not easy to avoid loan repayments.U better inform them the facts n take some time.
If its a Nationalised Bank n heavy dues.....they will go for recovery with costs.
Secondly they will sue the guarantor / surety person n recover the amounts with penalties / expenses.