My FIL has taken an unsecured crop loan in a nationalized bank for 1.6 lacs and unfortunately he has died recently. He also had a Jewell loan in the same bank which recently completed the tenure period. So we went to bank to renew the loan in different name. But the bank officials threatening us to close the crop loan first and then only we can talk about the Jewell loan.
Is there any RBI guidelines stating we need to close all accounts before renew/close the Jewell loan?
What will happen to crop loan taken by FIL which is a unsecured loan? Whether we need to repay? If we need to repay, Will we get more time to repay the crop loan and can we close the Jewel loan first?