"Living in Mumbai on a teacher's salary is hard enough. A personal loan of ₹8L for my brother's education spiraled out of control. The constant recovery calls were humiliating during school hours. AMA silenced the noise."
Priya, a 29-year-old mathematics teacher at a reputed private school in Mumbai's suburbs, has always been the pillar of her family. When her younger brother secured admission to a prestigious engineering college, the family lacked the immediate funds. Without a second thought, Priya took a personal loan of ₹8 Lakhs from a private bank to fund his tuition, confident that her salary and her brother's future job would cover the repayment.
However, life in Mumbai is unforgiving. Rising rent, inflation, and unexpected medical expenses for her mother quickly ate into her disposable income. To make matters worse, the job market slowed down, and her brother struggled to find placement after graduation. The burden of the EMI fell entirely on Priya's shoulders. She started using her credit card to pay the loan EMIs—a classic financial mistake that quickly spiraled into a debt trap.
The bank's recovery process was ruthless and insensitive to her profession. The calls started coming during school hours. Initially, she would step out of class to answer, but soon the frequency increased to 15-20 calls a day.
The breaking point came when recovery agents started calling the school's landline, demanding to speak to 'Priya Ma'am' regarding 'payment defaults.' The school receptionist and colleagues began to gossip. 'I was teaching algebra, but my mind was terrified that the Principal would call me to her office,' Priya shares. 'They threatened to send agents to the school gate. I was terrified of losing my job, which was the only income source for my family.'
Desperate to protect her professional reputation, Priya contacted AMA Legal Solutions. The legal team understood the gravity of workplace harassment. They immediately took over her representation and issued a legal notice to the bank, citing the RBI's guidelines that explicitly prohibit contacting a borrower's employer or visiting the workplace without express permission.
The legal intervention was swift. AMA sent a formal communication to the bank's nodal officer, warning that any further contact with the school would be treated as defamation and criminal intimidation. The calls to the school stopped instantly. The agents were forced to communicate solely through AMA's legal team, giving Priya the breathing room she desperately needed.
With her job secure, AMA's financial counselors sat down with Priya to realistically assess her finances. They realized that her debt-to-income ratio was unsustainable. There was no way she could pay the full outstanding amount with interest without starving her family.
AMA's negotiators presented a strong case to the bank. They highlighted that Priya was a genuine borrower with intent to pay, but her current insolvency was circumstantial. They argued that pushing her too hard would lead to job loss, resulting in zero recovery for the bank. They proposed a realistic One Time Settlement (OTS) based on the principal amount she had actually utilized.
The bank eventually agreed to a settlement of ₹4.1 Lakhs—nearly 50% of the total claim. This amount was manageable. Priya arranged the funds through a soft loan from a close relative.
AMA Legal Solutions guided her through the final payment process, ensuring she received a settlement letter that protected her from future liabilities. Today, Priya teaches without fear. 'I used to dread the school bell ringing, thinking it was a collection agent,' she says. 'Now, I can focus on my students. AMA Legal Solutions didn't just settle my debt; they saved my dignity as a teacher.'
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