Dear Sir, I have a query regarding how banks will recover a defaulted CGTSME loan and how will be the borrower's heir be affected. My father started a marine engine business in the year 2020 for which he has two loans open today. The first loan is a Loan Against Property (LAP) and the other is a CGTSME loan with an outstanding loan balance of 76 lakhs and 38 lakhs respectively. Today his business has stopped due to losses in the previous years and his partners have left him. He is unable to find a new partner and as a result, unable to secure further loans to restart his business. In such a situation, I am ready to take the burden of the mortgage loan and re-pay it. However, I don't have the capacity to re-pay the CGTSME loan. He has assets worth 20 lakhs. My father wishes to gift his property to me. Since his business has stopped today and assuming he won't be able to secure further loans, what procedure will the bank follow to recover the defaulted loan and can the bank enforce me/his family members to pay?
