In case of principal personal loan borrower is passed away

Querist : Anonymous (Querist) 16 December 2011 This query is : Resolved
Hi,

My brother had taken personal loan from SBI bank in Bihar. He was working with central govt. and bank has given this loan on his salary.Unfortunately he passed away and my sister in la also passed away just after his death.

Now can you suggest me the children would need to pay the loan with interest. We urged the bank that we were not aware of this loan we got the passbook by chance and could trace this loan. so we urged to waive off the interest after his death but bank is not willing to waive that interest off.

Please suggest me what we should do in this case.

Thanks
Pushpendra

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M.Sheik Mohammed Ali (Expert) 16 December 2011
the son of the deceased liable to pay, same time waive the amount of interest depend upon the loan amount and terms and condition. best thing engage a lawyer and send the notice above said reason.

DEFENSE ADVOCATE.-firmaction@g (Expert) 16 December 2011
If you want to pay the bank will settle at your terms otherwise it is a lengthy legal procedure for them.

ajay sethi (Expert) 16 December 2011
generally bank insists that borrower take out an insurance policy at time of sanction of loan . the reason being in event of death legal heirs wont be saddled with any liability to repay the loan .

find out from your brother records whether any such insurance policy has been taken by your brother /sis in law

Querist : Anonymous (Querist) 16 December 2011
Bank has not taken any action so far , it's been one and half year. But I am worried as interest is increasing day by day.

Bank has taken an application from
my father (I am brother of deceased) that he will pay the loan on plain paper.Will that be a problem for me?

Thanks a lot for your suggestions so far, please respond on this too.

DEFENSE ADVOCATE.-firmaction@g (Expert) 16 December 2011
Power of defense is immense. Facts are only door to truth so its appreciation differs from person to person. Truth is never absolute.
Power of defense is power of negative. Darkness is perpetual , light has to be sustained.

Shonee Kapoor (Expert) 16 December 2011
The bank can lay claim from any assets of the deceased before it is disbursed to the legal heirs.

Though insurance on loan amount is a phenomenon, it is not been adhered by all banks.

Regards,

Shonee Kapoor
harassed.by.498a@gmail.com

Raj Kumar Makkad (Expert) 16 December 2011
In the given case, the legal heirs can make One Time settlement and can get the matter resolved wherein all bank managers are duly authorized to waive off the interest in such type of accounts in the larger interest of bank.

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