POSTED BY April 12, 2012 3:09 pm COMMENTS (3)ON
I have a site loan. Unfortunately, the site has been encroached by someone and on appraoching the bank folks, they are claiming, they wont take action, until I stop payment. What would be the next course of action by bank, if I stop loan payment?
What are the other alternatives available for me?
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3 replies on this article “Stopping payment of loan”
Shouldnt bank be held responsible, since they have validated the site documents for aunthenticity before providing loan and help me out in resolving the issue?
please see my response below.
What is the price, loan amount?
[Sunil Kumar] Its costed by approx 11 Lakhs and the loan amount is 5.3 lakhs
how much loan has been disbursed?
[Sunil Kumar] I have got the complete amount, 5.3 Lakhs at the time of registration in 2006.
Is the property mortgaged with the bank or not?
[Sunil Kumar] Yes, the property is mortgaged with bank and there is not guarantor here.
Are you ready for the situation that your name is reported to CIBIL?
[Sunil Kumar] What is the impact in future, if my name is reported in CIBIL?
What would be your recommendations? Please let me know, if you need more information.
Dear Sunil, can you provide more details on this plot & loan thing? What is the price, loan amount? how much loan has been disbursed? Is the property mortgaged with the bank or not? Are you ready for the situation that your name is reported to CIBIL?
Please provide answers for the above questions.
This will definitely get reported to CIBIL in some form sooner or later because most of the data feeds sent to CIBIL will usually be automatically generated based on defaults.
But even if you stop payment I am not sure what kind of action the bank will be able to take other than proceeding legally (I doubt if they can even do that as they dont even own that plot).And we all know how soon legal tussles will be solved in India!
Not a personal finance solution but start by talking to them that you have allowed them so far but now you intend to do something else and ask them if they can leave in 2-4 weeks. Some encroaching stories have ended smoothly with the group just agreeing to leave if they are just wandering groups. Sometimes the people who encroach will also be ready to leave for paltry amounts if you are lucky. However if this is a willful encroachment by someone with power it is a tough road ahead.
Folks planning to invest in plots – follow the forum responses carefully.