Recovery of loan after death of principal borrower

Querist : Anonymous (Querist) 08 February 2018 This query is : Resolved
My Father died with heart attack and he borrowed loan on commercial vehicle from HDB. Person who processed loan said he will also get insurance but now when we ask about insurance he said my father was over aged.
if there is no option of insurance of 62 year how he was eligible for loan...
any way so we can get relief. because they give us wrong information about loan.

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Sudhir Kumar, Advocate (Expert) 09 February 2018
was he driving at this age?

Sudhir Kumar, Advocate (Expert) 09 February 2018
where is the vehicle now?

Sudhir Kumar, Advocate (Expert) 09 February 2018
you can sell vehicle and refund loan.

Guest (Expert) 09 February 2018
Very vague query!

You are grossly mistaken. Insurance is taken for the vehicle, not for the driver. Self insurance of the owner has no link with the insurance of the vehicle. Both have to be taken separately by the owner of the vehicle himself, not the person, who processed loan.

There is also no link of insurance with the recovery of loan. Since the vehicle passes on to you, as a legal heir, after your father's death, you are liable to pay the balance of loan dues also.

Sudhir Kumar, Advocate (Expert) 09 February 2018
Some lenders do get the borrower insured. However, in this case the bank failed in such insurance due to advanced age of the borrower.

This does not mean that you will have the vehicle in your custody and also will not refund the loan.

Querist : Anonymous (Querist) 09 February 2018
Any way so we can deal with HDB Finance corporation to settlement loan amount

Sudhir Kumar, Advocate (Expert) 09 February 2018
talk to bank

Dr J C Vashista (Expert) 11 February 2018
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