Removal of guarantor from my education loan
4 months ago
In 2013, Bank illegally obtained guarantor for my education loan upto 4 lakh INR; which was against RBI regulation. Now(2023) I need to remove the guarantor from my education loan.
A.Dear Client,
If the bank obtained a guarantor for your education loan against RBI regulations in 2013, you have grounds to address this issue. Begin by gathering evidence of the bank's violation, including documentation showcasing the illegitimate acquisition of the guarantor. Contact the bank and bring this matter to their attention, explaining the breach of regulations and your intention to have the guarantor removed. Clearly outline the RBI regulations that prohibit such practices and request the necessary steps to rectify the situation. If the bank is unresponsive, you may escalate the matter by filing a complaint with the Banking Ombudsman, a designated authority to address grievances against banks. Consult with a legal professional for guidance on the specific steps to take in your situation, and ensure that your rights are protected in the process of removing the guarantor from your education loan.
If the bank obtained a guarantor for your education loan against RBI regulations in 2013, you have grounds to address this issue. Begin by gathering evidence of the bank's violation, including documentation showcasing the illegitimate acquisition of the guarantor. Contact the bank and bring this matter to their attention, explaining the breach of regulations and your intention to have the guarantor removed. Clearly outline the RBI regulations that prohibit such practices and request the necessary steps to rectify the situation. If the bank is unresponsive, you may escalate the matter by filing a complaint with the Banking Ombudsman, a designated authority to address grievances against banks. Consult with a legal professional for guidance on the specific steps to take in your situation, and ensure that your rights are protected in the process of removing the guarantor from your education loan.
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A.Dear Client,
As per the RBI guidelines for education loans, based on the sum provided, loans must be separated into protected and unprotected loans. No collateral is needed for loans under 4 lakhs, however, a security deposit in the form of collateral is required for loans over 4 lakhs. Similar to any other loan, the bank considers the borrower’s creditworthiness before approving an education loan. It’s possible for a student to lack a credit history. Therefore, banks consider the CIBIL score of the parents who are the student borrower’s co-signers. The main requirements are the fees of the course to be pursued and the applicant's annual family income. There must be a co-applicant, which can be either one of the parents or sibling or spouse. Loans below Rs. 4 lakh do not require a guarantor or security. RBI allows the banks to frame their guidelines for loans that require guarantors and their treatment. As said earlier, this depends on various factors like the creditworthiness of the applicant, his income, employment and residential details. As regards the removal of the guarantor name from your education loan, you need to clarify the matter with the lending Bank and ensure whether the bank makes a person as guarantor to the loan or, the person is mentioned as co-borrower/co-applicant against the education loan up to Rs.4 lakhs as stated above. Based on the information available from the Bank you may represent your grievance before the lending Bank as well as RBI.
As per the RBI guidelines for education loans, based on the sum provided, loans must be separated into protected and unprotected loans. No collateral is needed for loans under 4 lakhs, however, a security deposit in the form of collateral is required for loans over 4 lakhs. Similar to any other loan, the bank considers the borrower’s creditworthiness before approving an education loan. It’s possible for a student to lack a credit history. Therefore, banks consider the CIBIL score of the parents who are the student borrower’s co-signers. The main requirements are the fees of the course to be pursued and the applicant's annual family income. There must be a co-applicant, which can be either one of the parents or sibling or spouse. Loans below Rs. 4 lakh do not require a guarantor or security. RBI allows the banks to frame their guidelines for loans that require guarantors and their treatment. As said earlier, this depends on various factors like the creditworthiness of the applicant, his income, employment and residential details. As regards the removal of the guarantor name from your education loan, you need to clarify the matter with the lending Bank and ensure whether the bank makes a person as guarantor to the loan or, the person is mentioned as co-borrower/co-applicant against the education loan up to Rs.4 lakhs as stated above. Based on the information available from the Bank you may represent your grievance before the lending Bank as well as RBI.
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