If the head of a family takes a loan from a small cooperative bank without informing is family along with his 2 friends who were guarantees to his loan, he passed away within one year of the loan taken. Now the bank wants to make his legal hires pay the loan amount with interest and does not want the guarantees to pay anything.
Where as while giving the loan no property or gold or any valuable assest was kept as collateral.
The person who got the loan was a retired senior citizen, with very less pension.
He had no property as such an individual on his name.
While the loan was given to him, his age was 70 he was suffering from diabetes, high blood pressure, and pancreatic cancer.
My query is:- Is it correct/legal for the bank to ask the legal hires pay the loan amount with interest?
Yes. The legal heirs are responsible not only for assets but liabilities also.
