Uday Valmiki 23 February 2022

private Bank demanding us to pay 61% of amount (Rs.5,00,000)

Hello sir,
My mother (govt employee) had taken personal loan (we didn't know about the loan till her death) in private Bank and paid 3 months of EMI during COVID period and she expired after 6 months due to blood clot in brain.
As a legal heir bank people were coming to us and demanding us to pay 61% of amount they also included pending EMI's and saying total amount of Rs.6,65,000/- in that I've to pay 61% of amount.
Ive requested them to pay an amount of Rs.2,50,000/- under One Time Settlement (i.e., 50% of total loan amount) they were refusing my proposal and demanding me to pay Rs.3,75,000/- if i refuse their offer they were going to file a suit on me.

Sir,
my request is that after a death of deceased person is it Correct to add the EMI amount till date or else we have to ask them for why they are adding intrest amount after her death. And I also asked them for we will go up on "Lok Adalath" they were refusing and saying it's a long process it's not possible.

If they file a suit on me will they add intrest amount and quote Rs.6,65,000/- or else the original amount of Rs. 4,64,000/- (by deducting 3 months of EMI paid by my mother.)

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3 Replies

Himani Chouhan (Advocate) 23 February 2022

Don't Settle straight way, ask the bank to provide you all relevent documments which are signed by your mother. Bank is bound to provide you all documents before asking their claim.

For further discussion you may contact.

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MS. HEMA 25 February 2022

MY FRIEND,

PLEASE READ THE LOAN DOCUMENTS CAREFULLY YOU WILL GET SOME SOLUTION IN THAT,IF YOU DON'T UNDRERSTAND THAT THEN CONSULT A LEGAL PROFESSIONAL(IN BANKING).

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LCI Thought Leader Adv. Ravish Bhatt, ADIT, CIOT (Dual Qualified lawyer/ Solicitor International Tax Affiliate CIOT) 14 July 2022

Firstly, the following points must be noted

1. Heirs liability is limited to inheritance.

2. Heirs should demand all documents i.e., loan agreement, account statement containing each debit and credit entry and any previous communications and should check whether current demand of bank is in any way deviating from past documents.

3. Heirs could check up for bank's OTS policy published in line with RBI guidelines and see whether they are eligible to opt for the same. If they are, they could think of availing the same.

4. For interest etc., interest is not linked to deceased person but to the outstanding amount and will continue to be charged till amount is outstanding. However, whether interest is in line with agreement with bank and whether any penalty charged is in line with RBI guidelines and / or in line with provisions of Indian Contract Act will be required to be examined

You may also request for EMI holidays while paying a one-time moratorium. Please go through the bank documents and you may find some provision where EMI holidays are permissible for exceptional circumstances. COVID will certainly fall under the category of exceptional circumstances. Some banks also provide an inbuilt cover for such exceptional circumstances.