Death of borrower

yes if eh father has beqeathed the property of deseased son or where father is guarantor of loan

In general, a bank cannot recover a loan amount from the account of a borrower's father unless the father has explicitly given a guarantee for the loan. If the father has provided a guarantee, then the bank may have the right to recover the loan amount from the father's account.

However, if the borrower defaults on the loan, the bank may have the right to enforce a lien on any assets or accounts belonging to the borrower, including joint accounts or accounts where the borrower is an authorized signatory. In such a scenario, the bank may freeze the account or recover the outstanding amount from the account after obtaining a court order.

You have not stated whether borrower is married or not , daughter or son .if they are unmarried and Hindus then their mother will inherit it and she has to clear loan ,not father unless he is gaurantor .

you hve not cleared how father came in picture?

what he guarantor?

Banks and financial institutions have the right to initiate legal proceedings against a borrower if a loan is not paid within the specified tenure. However, if the primary borrower dies before repaying the loan, the bank can recover the sum from the co-borrower, guarantor, or legal heir.

It must be noted that the shifting of the liability depends upon the type of loan taken and the collaterals.

In the case of a personal loan, which is an unsecured loan, the lenders cannot ask the legal heirs or the surviving members of the dead borrower to pay the outstanding amount.

Such loans do not involve any collateral; hence, the bank cannot seize and sell any asset of the borrower to recover the amount. The outstanding balance is eventually written off and added to the NPA account by the bank. 

When the primary borrower of a home loan passes away before repaying the loan, the lender usually checks for any co-applicant of the loan. If the co-applicant cannot service the loan, the bank approaches the family members, legal heirs or the guarantor. 

If any of them takes the responsibility to repay the home loan, the lender returns the secured property to its owners. But, if no one assures to pay the outstanding amount within the scheduled time, the bank proceeds to seize and sell the property to recover the loan.

In such cases, the legal heir of the borrower can reach out to the lender and ask to restructure the loan.

No proper advise can be framed without knowing the facts.