Tago Boria 14 March 2022

iam liable to pay my father 's personal loan ?

my father took personal loan from SBI . After his death I have been appointed on his place (compassionate ground )

beacuse after his death there was no other family member was earning for our livelihood.

now after getting his job on Compassionate Ground is iam liable to pay my Father's outstanding laon amount?

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7 Replies

anubhav Bhatt 14 March 2022

You are Guaranter or not in that Loan?

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Tago Boria 14 March 2022

no sir I'm not guaranter. according to loan agreement outstanding amount should be settled through his NPS account And Department also give Death Garuity but this benefit was also taken by bank and we did not get any other terminal benefits

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 ) 14 March 2022

There is no legal provision for banks to recover outstanding loan amounts in the personal loan segment from the family members of a deceased borrower. Personal loans fall in the unsecured category of loans.

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Tago Boria 14 March 2022

Also bank saying that you got this job on Compassionate Ground now as you got job on Compassionate Ground because of your father you got this job now its your responsibility to pay his liability . am I liable yes /no?

Shashi Dhara 14 March 2022

All lrs of your father is jointly liable to discharge debt .

Palak batra 14 March 2022

Dear Querist,

In such a situation a mere witness can not be held liable to pay the loan upon the person who died. If the person who has died, in this case the father has a guarantor then that guarantor would be liable to pay the same because according to most loan contracts, the liabilities of a guarantor are similar to that of a borrower, implying that we are equally responsible for paying off the loan.

Regards,

Palak