CC LIMIT LOAN

You need not to worry, take over the business of your Papa and consult your Charted Accountant , who is filing your Income tax return regularly, he will guide you properly.

You can not expect guidance from a forum for evading the bank loan, and the bank loan has to be paid with such interest.  A cash credit loan of Rs.25 lakhs must be supported by stocks of at least Rs.40 lakhs. In absence of primary security, the bank will proceed on the collateral security of the building mortgaged and the value must have been more than Rs.50 lakhs.  The bank is safe.  The deceased borrower is not fair in CC operations.  Bank does not show lenience as CC limit must be utilized after showing such stocks and as per prescribed margins.  They are not in a hurry for compromise and may not allow concessions for unfair dealings.  Though the property is in your mother's name, she has mortgaged her property; as security and must have been a co-obligant..  The suggestion given by Shri Patil is very appropriate.

If the borrower has died then the lender will recover the loan amount by auctioning the property given as collateral security as per provisions of law.

You may try to repay the loan or at least request for restructuring the loan so that yo may pay the same at your convenience as per the restructure. 

If you do not want the bank to seize the house property given as collateral security you may have to initiate appropriate steps to save your property. 

Members can not decide on such a possibility of OTS.  In general, Bank will auction the property, with that amount they proceed on other assets belonging to the deceased's property as shown in his financial statements.  Every banker obtains a declaration on the personal assets of the borrowers.  The net worth might have been more than Rs.50 lakhs in other immovable properties at the time of sanction.  The recovery is not confined to mortgaged assets alone, but they can attach other assets also through the process of court and they try to recover every single rupee if possible, OTS is the final option, if there are no more immovable assets.  If you are having other assets, try to propose a settlement in advance and avoid costs of more than Rs.1 lakh.

The issue is in between the deceased father, a borrower, and a lending bank., members can not suggest any remedy as it is the discretion of the bank in the interest of the public, for recovering such amount from the properties.