If funds are not the issue, then the matter can be resolved by settling the loan, and removing the name of lady from loan and property.
Banks take over the loan and charge app. 2% charge of the amount taken over.
You can explore this option from nationalized and private banks and compare for the best deal.
Procure an a/c statement of loan a/c from LIC showing the balance amount to be paid.
Approach any other bank of your choice, with all details and all documents and confirm the process of takeover with one gentleman applicant only, and the lady shall discharge her liability with LIC.
If the bank agrees, discharge the liability with LIC, obtain NOC from LIC, and ask the LIC to report it to credit rating agencies e.g. CIBIL, and apply for CIBIL report to LIC. RBI has fixed a fee up to maximum amount of Rs. 50/-
Bank shall grant loan as per their eligibility criteria, and looking into income of gentleman.
Since the lady does not want any share from the property, husband should not have any issues. Hence settle the loan with LIC, and explore the suitable and desirable options.
Banks accept co applicant from, parent, spouse, brother, direct relative...or a guarantor.
Elders in the family, competent and experience persons known to the family, lawyer can help to resolve the matter amicably.
Gentleman if has liquid funds can show it to the bank, or can apply for lower amount from the bank or can apply a loan/potion of the loan, against FD.
