Hi,
I had availed an Education loan of Rs. 2 Lacs from SBT, Kerala for my engineering (Completed in 2004). Since I was not into a good job immediately after my studies there was a delay in me paying back the loan and had started paying in back late. While we had informed the bank about the same and also had started paying back the money whenever we could. However, after making payments of more than Rs. 60,000/- in the same year they had registered as case against me in 2007 and even got a court decree. Even after them having done that we made a payment of Rs. 1 Lac in 2008 and had requested umpteen number of time for settlement and we were ready to pay off the remaining capital and pending interests totalling to Rs 2 Lacs. However, they kept delaying the responses and never replied or responded in time and later they had come for a settlement for Rs. 2lac and we accepted and offered to pay. However, in a weeks time they came back saying that is not OK for them and the amount has to be increased and the fight is still going on, where with every email they increase the amount to pay even if the gap of 2 emails is less than a week.

In first place, I wouldn't have thought it is fair from Bank's side have registered a case when we were making payments and secondly now they are delaying the process and asking us to pay the interest for this delay. The unfortunate part is that I am not in India currently and cannot meet up the bank guys in person for any negotiation, not that I think it will be of any use. I even made my dad to attend couple of their Adalats and all they did was harass and humiliate, they really didn't want any negotiation.

Could you please advise me on what is the best way to handle this? I would like to get rid of this loan ASAP, but the bank just don't want to help. And one more point, the loan is not against any security.