Legal heirs may be liable to pay a deceased father's personal loan, but it depends on several factors, including:
Personal loans are unsecured loans, so lenders generally cannot force legal heirs to repay them. However, if the deceased borrower created security for the lender, the legal heirs may be liable to repay the loan to the extent of the estate they inherited.
If a loan is taken out jointly by two or more borrowers, the liability to repay the loan is passed on to the co-borrowers. The consequences of a single borrower loan will be determined by the nature of the loan, whether it is a secured or unsecured loan.
A lender cannot compel legal heirs to pay off an unsecured credit, such as a personal loan or credit card debt.
if a debtor dies before repaying an unsecured loan, the lender cannot recover unpaid debts from the deceased's surviving partner or legal heir.
Legal heirs are solely accountable to the degree that they receive any assets from the borrower. For example, if a legal heir inherits property worth Rs 1 lakh, the legal heir will only be liable to the deceased's lender for that amount, not more.if you inherit assets from a person who died with a loan outstanding, you must assess the asset's value and decide how to repay the loan.
