Chandra Mohan (s/w) 06 February 2013

Personal loan

Hi,

My uncle worked in Railway department he had taken personal loan in 2008, my mother aslo working in railway she had put sign for the security purpose for him. He died in 2009, his family had received all the settlement amount and his daughter had joined in railways(her father's job) and also his family receive the pension amount. But they didn't repay the loan amount to the bank for the last 3 years. Bank had file the case for personel loan, my mother went to the bank and speek with the manager. Manager said that they are going to detect the personal loan amount from my mother's salary.

Please advise us..........

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5 Replies

ADVOCATE Prem Joshi (Advocate/ Legal Consultant) 06 February 2013

If she has given any guarantee then responsible otherwise not.

Kumar Doab (FIN) 06 February 2013

The bank may proceed with/without any notice to create a lien on salary a/c.

Banks are known to do it.

Close the salary a/c in the bank and open another a/c in some other bank.

Provide in writing under acknowledgment the contact details of the legal heir of the deceased borrower to bank and details of the payments received from railways and ask the bank to initiate the process of recovery {which may be to the tune of % of the estate inherited by legal heir) from legal heir and supply the copies of all communication to your mother by redg. post only and mention that postage prepaid ( as purchased from PO self addressed envelope is enclosed for sending redg. post to her).

Demand certified copies of the brochure/offer of person loan made by bank to borrower, loan application, loan approval letter, loan agreement signed by borrower etc from bank.

Bank is duty bound to supply these free of cost and is under obligation of Bank’s Code of Commitment to Customers, and Fair Practices Code.

In the loan agreement it might have been mentioned that the successor’s, legal heir of the borrower shall be liable to pay the loan.

Bank should exhaust the option of recovering from legal heir before intimidating the lady.

Has the bank supplied any notice to the lady so far?

Approach a lawyer as ap and preferably issue a legal notice to legal heir citing that they have received and now own the estate of the deceased and should clear the loan of the deceased, with a copy to bank.

Kindly evaluate the option of issuing a notice to BM of the bank also claiming that lady has been co operating with the bank while the BM and bank has not initiated any recourse to recover from legal heir and is intimidating the lady.

Your lawyer would know how to defend you.

Valuable advice of learned experts/members is sought.

Chandra Mohan (s/w) 07 February 2013

There is any possible to recover the money from her daughter, because she joinded in Railways only(her father's job) and also they have receive the pension for his family.

Kumar Doab (FIN) 07 February 2013

Death of the principal borrower does not bar the creditor to resort to recovery even from the legal heirs. It is felt that legal heir may be the first option for the bank.

It is felt that loan is secured by guarantee (by your mother) and no other security is pledged by borrower?

The family of the deceased borrower should come forward and submit undertaking to service the loan liability on their own.

Bank should approach the family/legal heir of the deceased borrower on its own. The BM of the bank should take the initiative.

If neither of them is taking initiative the guarantor should act immediately and defend himself from becoming victim of the situation. The guarantor must have accepted the liability jointly and severely. After the death of the borrower guarantor is in the presence of borrower.

Approach your lawyer as ap, show the docs, records and give inputs in person.

Obtain documents from bank as ap.

The guarantor may try to build pressure on family of the deceased borrower and may even mention that he shall be constrained to approach employer (Railways) and disclose the debt details so that legal heir(s) come forward and submit undertaking to service the loan liability on their own.

However let your lawyers opine finally and you may proceed under expert advice of your lawyer.

Valuable advice of learned experts/members is sought.