We started a steel business and took a loan from the bank. Unfortunately, things didn’t go as planned, and we had to shut down the business. To keep up with the loan interest, we borrowed from friends and family, but we can’t manage anymore. We wrote to the bank requesting a one-time settlement, but they’re not agreeing and keep demanding the interest. Since it’s a business loan, we don’t have the stock left due to heavy losses. The bank is threatening legal action for the inaccurate stock statement we submitted. We want to sell our property to settle the loan. Is there any way to avoid legal proceedings despite the false stock declaration?

Apni Law
Apni Law
Law Forum › Category: Banking / Finance › We started a steel business and took a loan from the bank. Unfortunately, things didn’t go as planned, and we had to shut down the business. To keep up with the loan interest, we borrowed from friends and family, but we can’t manage anymore. We wrote to the bank requesting a one-time settlement, but they’re not agreeing and keep demanding the interest. Since it’s a business loan, we don’t have the stock left due to heavy losses. The bank is threatening legal action for the inaccurate stock statement we submitted. We want to sell our property to settle the loan. Is there any way to avoid legal proceedings despite the false stock declaration?
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Apni Law Staff asked 2 years ago

We started a steel business and took a loan from the bank. Unfortunately, things didn’t go as planned, and we had to shut down the business. To keep up with the loan interest, we borrowed from friends and family, but we can’t manage anymore. We wrote to the bank requesting a one-time settlement, but they’re not agreeing and keep demanding the interest. Since it’s a business loan, we don’t have the stock left due to heavy losses. The bank is threatening legal action for the inaccurate stock statement we submitted. We want to sell our property to settle the loan. Is there any way to avoid legal proceedings despite the false stock declaration?

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Best Answer

Apni Law Staff answered 2 years ago

Under Indian law, you can try to negotiate a settlement with the bank. While your false stock declaration is a serious issue, you can attempt to reach a compromise by offering to sell your property to settle the loan. The bank may be willing to consider this option to avoid prolonged legal proceedings and potential financial losses.

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