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FHi everyone,
Posting this on behalf of my cousin, as he’s not on Reddit. He’s facing a really stressful situation with his education loan from Bank of Baroda and would appreciate any advice or similar experiences.Background:
• He took an education loan of ₹24 lakhs with collateral from Bank of Baroda in 2023.
• At the time of sanction, the branch manager clearly stated that EMI repayment would begin in August 2025 (i.e., one year after course completion), and that the EMI would be ₹24,000. This was also mentioned in the sanction letter.
• In November 2024, he received an email from the bank demanding interest payment, which caused panic. After his father and I visited the branch, they confirmed it was a mistake and corrected it.Current situation:
• Since January 2025, he has been receiving calls from loan recovery agents demanding monthly interest payments of ₹24K–₹27K.
• When he visited the branch again, he found that the branch manager had changed. The new manager insisted he had to pay the interest and suggested he could pay it in a couple of instalments and to ignore the recovery agent calls.
• As of now, the total outstanding is ₹65K. He has already paid ₹43K.
• Today, a loan recovery agent visited his home, threatening that his account will be marked as NPA if the remaining amount isn’t cleared immediately.Additional info:
• He’s currently unemployed and has high social anxiety.
• His family has never taken a loan before, so they’re extremely worried and unsure how to handle this.
• He’s in the process of selling a property to close the loan before EMIs begin in August, but that may take a month or more.
• He’s now getting 10–15 recovery calls a day, even on Sundays and after 7 PM, which is taking a toll on his mental health.
• The previous manager didn’t inform him (verbally or in writing) about these interim interest payments.
• His visa was also delayed because the manager didn’t approve the funds verification on time, and he had to personally sit at the branch to get it done.We’ve advised him to consult a lawyer, but I wanted to post here to ask:
1. Is the bank allowed to mark his account as NPA before the EMI officially starts?
2. Are these recovery calls and home visits legally allowed in such a scenario?
3. What steps can he take now to protect himself, especially since he’s willing to clear the full loan in a couple of months?Any advice, similar experiences, or help would be greatly appreciated. Thanks for reading.
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