Avinash (Associate) 20 September 2011

Personal loan repayment

Hello Sir,

My father obtained a Persoal loan of ruppes 2.15 lacks from a private bank in Feb 2006. He passed away on the month of Nov 2006. Till that time he was paying EMI's regularly. we family members (myself, my mom and my brother) were not aware of this personal loan till his death. After his death bank called us to know about the loan amount.we family members were not the guarantor or co-applicant for this loan. But the bank is pestering us for the past 5 years for the loan payment. About 10 days back an employee from bank along with an advocate came to our home for a negotiations and saying that if we pay about 40% percentage of balance principal amount (its comes around 96000), they would close this loan and give a closure certificate.

First thing,are we liable to pay that loan amount since we were not even aware of the loan and did not even use that money.The bank is stating that since we are legal heir we are supposed to pay the balance.

Secondly we agreed verabally to pay around 96000 and close the loan due to their consistent trouble. Now by accepting this, are we inviting further trouble? Will the bank invoke any futher legal suit or is there any other implications by paying the above said closure amount. FYI, we have not paid any money or installment till date.

Also i heard that PL are secured with insurance.How far is this true and in this case as ours will the bank have claimed the same money from insurance?

Thanks in advance for the reply

Avinash

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4 Replies

M.Sheik Mohammed Ali (advocate) 20 September 2011

once confirmed the loan issue problem after that you pay the balance amount, because in civil act the legal heirs is liable to pay his father due's,.

Nadeem Qureshi (Advocate/ nadeemqureshi1@gmail.com) 22 September 2011

Dear Avinash

there is no provision in law that if anyone took a personal loan then his heirs will be liable to pay. only in civil law if the bank file a suit for recovery and the concerend civil judge passed a decree against the defendant and after that the bank file execution petition and the execution court passed order of attachment the property of the heirs only then you are liable to pay the dues otherwise you are not liable to pay the dues of personal loan.

feel free to contact anytime on my mob 9953809956

or wtite me on nadeemqureshi1@gmail.com

DAULAT DILBAUG (Problems related to money marriage matters.-dostnaye@gmail.com) 09 October 2011

The bank is now in a fix since legal process will take long time and expanses. Bargain hard and keep cool , they will settle on your terms.

Kumar Doab (FIN) 12 October 2011

Loan amount Rs.215000=00

Your father has paid app. 10 installments amount of which is not mentioned.

Thus balance principle amount is not known.

However 40% of loan amount is Rs.86000=00

Therefore 40% of balance of principle loan amount without adding any interest, penalties, late fees etc should be less than Rs. 86000=00 mentioned above and Rs.96000=00 quoted by bank employee and bank advocate.

Bank has not supplied any written communication addressed to your father at your address in record with the bank, which is deficiency of the bank.

Bank should be thankful to you and BM of t he bank would be too happy to quote you and family as responsible citizens.

If there is no compelling financial reason, you may bargain hard with the bank and arrive at the best deal. Bank may settle at much lower amount.

However you should obtain a written settlement letter under original seal and signature by hand from BM of the bank and pay by cheque and obtain receipt and photocopy of the cheque and NOC under original seal and signature by hand from BM of the bank. Banks usually have a centralized loan disbursement cell/branch in city and therefore you should obtain a written declaration from BM and officer In charge of loan disbursement cell/branch stating loan stands cleared without any pending liability towards the legal heirs namely , relationship with father, DOB. And that the bank undertakes to withdraw the names from credit rating agencies etc, if any and shall supply the reports certifying clean history.

You should obtain certified copies of the loan application signed by your father and documents collected from your father by the bank and copy of the insurance policy. If bank states verbally no policy was ever issued by the bank you should demand that bank should state so in writing under original seal and signature by hand from BM of the bank and officer In charge of loan disbursement cell/branch. You can obtain this info by RTI route also.

Kindly take a qualified decision with your family.