Moratorium | Vkeel - Free Legal Advice

Regina

Margao

I have a loan with Citi of 2,50,000 and a credit card outstanding with HDFC bank of 4,15,000. I have not paid since April 2020 due to COVID and medical reasons and do not think I can for another year. I am salaried. I have the below 2 options on my mind. Kindly advise how I could proceed with each of these. 1. How can I avail of an extension of the moratorium for at least one year without the interest getting accrued. What are the documentations or how do I request the bank to grant me the extension because I have spoken to the collection and customer departments of both banks but they say it is not possible to extend the moratorium but I think as per the circular if the bank wants they can extend it for up to 2 years? 2. In case of a settlement, I can try arranging up to 20% of the principal amount for both the banks. Again, how can I get the bank to agree on this settlement amount? Both the banks are asking for at least 70% of the amount for settlement. Any other suggestions besides the above 2.

Expert's Answers(3)

Advocate Kajal Bhatia
New Delhi, Delhi

13 Client Ratings

Dear Regina, Please clarify that since you have not paid since April, have the Bank declared your account as NPA or have they initiated any SARFAESI proceedings? Also, what kind of loan was it and what was the secured asset mortgaged with the Bank? Prima facie, I can suggest you that yes you can avail moratorium but please note that you will still have to pay the interest component and only the tenure is increased. Secondly, the settlement is a little long process and the negotiations are never successful in one go, so I would suggest you to give a one time settlement ( OTS) proposal to the banks in such a manner that they accept it. Feel free to reach out with the above answers for a detailed discussion. Regards

November 20, 2020
Kishan Retired Judge ( Advocate)
Bengaluru, Karnataka

184 Client Ratings

Dear Sir, It is the discretion of bankers to go for settlement or not. Anyway you will get ample time if they prefer to approach Civil Court by way of civil suit. Please give me rank after viewing my details. Please call me for further assistance.

November 18, 2020
Advocate J L Naagar
Jalandhar, Punjab

169 Client Ratings

Under all the circumstances Your Banks have to follow and adhere to the guidelines and Instructions issued by Reserve Bank of India. But they have a very little Space to divert from the mainstream to accomodate you. Yes, they can manage to reschedule the matter to certain extent. Please give me Rank Five and follow me after reviewing my resume and book a consultation for further discussion and explanation if required.

November 18, 2020