Can Limitation Of A Loan Be Kept Alive Based On EMI Deduction By Virtue Of SI . | Vkeel - Free Legal Advice

Debmalya Chakraborty

Kolkata

A borrower was sanctioned a loan by the bank on 01.01.2018. He has given Standing instruction for deduction of his EMI towards a loan for the tenure of loan till 31.12.2023 from his savings account in the same branch. Now, on 31.12.2020 when the branch manager approaches him for signing the Balance Confirmation letter for keeping the limitation alive in the loan borrower refuses to sign the BC letter. Now based on the last deducted EMI on 01.12.2020 ( by virtue of the SI given by the borrower on 01.01.2018), can the limitation be extended for another 3 years.

Expert's Answers(2)

Advocate Suneel Moudgil
Panipat, Haryana

40 Client Ratings

1. the matter is well within limitation & will remain in limitation after three years of the closure of the loan, 2. non signing has no impact in the given circumstances

November 22, 2020
Advocate J L Naagar
Jalandhar, Punjab

169 Client Ratings

If the borrower does not sign the Balance Confirmation Letter the Bank will still be well within its right to go for initiation of Recovery process as the loan is still within the stipulated period of limitation. Please give me Rank Five and follow me after reviewing my resume and book a consultation for further discussion and explanation if required.

November 21, 2020