I borrowed a loan from banks on 2008 but I was not able to re pay the loan amount due to health issues. I am interested to make repayment of bank loans but i am getting phone calls and legal notices from recovery agencies so pls suggest me what is the best thing i have to do for clear the loan account. Is the recovery agents are best persons to solve the issues or not ,they are giving assurance to make 40% waveup on loan amount. Will i get further loans from banks when i solve the issues through them?
This is a serious issue. Not only are you likely to face legal action, but your credit score will be affected and that will put an end to your future borrowings.

If you are serious about fixing the problem, we are here to offer FREE guidance through our experts. However, it will work if you are willing to disclose details of your income and expenditure, the extent of your loan/liabilities, the reason for your inability to pay and MOST of all, whether or not you WANT to make a course correction and clean up your financial mess.

If you are keen you will need to send the following information.

1. What is the extent and purpose of your loan? You will need to inform us about the bank /institution from which you borrowed. What is the overdue. Also please call the bank right away and say, you are taking help and will get back.
2. How many loans do you have other than this?
3. Do you have any other liabilities or credit card debt?
4.What is your monthly income from all sources?
5. What are your monthly expense?
6. How much extra can you pay?

We urge you to put this together and send it by Thursday. You can also try and call /make a WhatsApp call to our counsellor (Former RBI Chief Gen Manager Mr D G Kale) who is available for counselling between 4 pm to 6 pm. If you send these details, you can speak to him on phone at that time, since you are not from Mumbai.
Our Experts

Sucheta Dalal Trustee - Moneylife Foundation

Suresh Prabhu Mr Prabhu retired as Senior Vice President from HDFC Bank

R Bhuvaneswari After serving Bank of Baroda for almost 40 years, Ms Bhuvaneshwari retired as Chief Manager in 2013.

Yogesh Sapkale Yogesh Sapkale is Deputy Editor of Moneylife and writes on finance, credit related issues

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