How banks enforce money suit while document is time-barred?
[Banks have many other ways to find out whether they can still enforce the recovery suits against the defaulter where period of limitation has already been expired.] The life of a loan document (DPN) is three years. Once the document is time-barred then the bank will not be able to enforce money suit to recover…
Read article
What is a revival letter for bank loan?
According to Section 2 (j) of the Limitation Act, 1963, the life of a loan document (DPN) is three years. Once the original Demand Promissory Note (DPN) is expired then the bank will not be able to enforce money suit to recover its due through Court of Law. If the loan is secured by the…
Read article
What is the remedy to revive time-barred debt?
Any contract that is executed by an executant without for any consideration is void in the eyes of law. As per section 25 (3) of the Contract Act, a fresh promise made for repaying the time barred debt is a valid consideration and the same is enforceable in a court of law. Therefore, it is…
Read article
What is Commitment Charge?
A fee charged by a lender to a borrower for the unused/underutilized working capital limit and or undisbursed loan amount is known as commitment charge. A commitment fee is generally specified in the sanction endorsement of loans as a fixed percentage of fee payable by the borrower on the the undisbursed or unutilzed loan amount. Such…
Read article
Sovereign Gold Bond Scheme 2018-19– Series-I
RBI has announced Sovereign Gold Bond Scheme 2018-19– Series-I. The scheme is open for subscription from April 16, 2018 to April 20, 2018. The Bonds will be issued on the succeeding Monday after each subscription period. The Bonds will be sold through banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices and recognised…
What is a Bridge Loan?
Bridge loan is a temporary short term loan taken by a person or company for a period ranging from 2-3 weeks to 52 weeks. Such loans are known as bridge loan because the loan helps in bridging the gap between short-term cash requirements and long-term loans or permanent source of funding. Bridge loans are also…
Read article