Banking

Priyesh (Querist) 09 June 2016 This query is : Resolved
Respected Sir,

My father took a loan from co-operative bank and that loan was N.P.A. in 2006. Now My father is no more in this world. Now I want to take a loan from other bank for expansion of my business so as the procedure of the bank, I have to submit the No-Due certificate from the Banks which are presence in my city. So I go for that Co-operative Bank where loan account of my father yet N.P.A. , they refuses to give me the no due certificate in my name because of my father's loan. I want to know can I have right to take a No-due from that bank in which my father's loan account is N.P.A. ? That N.P.A. loan is not in my name. It is in my father's name. Can bank refuse to give me the No-due certificate in my name because of my father's loan?

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r.sathyanarayanan (Expert) 10 June 2016
If you have not inherited any property of your father,then you are not liable for the loan taken by your father.
Further, ask the bank under which rule they are asking you to take no due certificate from all the banks of your place.I don't think they are right.if they want they themselves can check.
You can not compel the banks with whom you never had any transaction.

Kumar Doab (Expert) 10 June 2016
Has this ban stated such strange requirement in loan application/check list of documents to be submitted by applicant?