Recovery of loan after death

Personal loan is not a secured loan.

It is believed deceased was Hindu.

The legal heir can pay the debt of the father. If they want to pay, the legal heir(s) may approach the lender with copy of death certificate and letter informing death of borrower and demanding the authenticated copies of: Loan a/c statement till date showing all credits/debit entries and:

·         letter of offer

·         copy of filled in loan application

·         copy of loan agreement

·         terms and conditions governing the housing loan

·         other documents such as schedule of fees and charges          

And go thru in detail about liability of guarantor…………..

 

Banks are required to give authenticated copies of documents executed by you free of charge. (cf. para 8.11.1 of Code of bank’s Commitment to Customers)

 

The legal heir may negotiate and bank may agree for leftover from principal amount. The legal heir must not provide copy of their Pan Card to bank, and must obtain receipt of FNF payment, loan a/c statement till date showing FNF payment made and NIL balance, NOC , and credit statement issued by CIBIL ( of deceased)showing closure of loan without any adverse entry. The legal heir may take care that loan is not shown as ‘Written off’ or as ‘Settlement’ as both are adverse enteries.

 

 The legal heir is not under any pious obligation to pay the debt, Refer to Hindu Succession (Amendment)  Act, 2005

The debt can be recovered from estate of the deceased. Probably the bank has filed case to recover it from payouts of deceased, From the dept.f

The PF, Gratuity can not be attached for recovery of debt.

You may go thru:

 

https://www.lawyersclubindia.com/forum/P-f-gratuity-90740.asp#.UqC5qdIW1MA

 

Discussion > Labour & Service Law > Gratuity > P.f & gratuity

 

 

If debt has not been acknowledged in last 3 years then it might have been time barred.

 

 

 

Approach a lawyer with copies of all docs and record and proceed under expert advice of the lawyer.

 

 

If the debt is 6 years old, you have to check up if it is time barred. Time barred debt cannot be recovered. Same is the legal position for the guarantor if no debt acknowledgments are executed. However the guarantor's obligation is dependent on terms of the guarantee deed. Please get it checked up through your local lawyer. I concur with the opinion of Mr. Kumar Doab

be clear whether loan is 6 year old or the default is six year old.

I am clearly speaking about debt and not the loan. A debt may be loan but a loan cannot be debt unless borrowed. Please understand clearly.

let the querist be clear of the dates and remove vagueness.

my father had taken a personal unsecured loan frm a bank and he has paid 19 emi and thn he passed away in may 2011 and now today I got a call frm that bank for repayment of loan amout. am I liable to pay the loan? has that bank crossed limitation period?