I (M-21) am seeking guidance regarding a situation involving my late father's outstanding personal loan. He passed away on July 18, and I recently received a letter from HDFC ’s legal consultant addressed to him regarding dues on a personal loan of ₹7 lakh held by him. The bank was informed of his demise shortly after his passing. To provide some context: 1. My father was the sole breadwinner for our family, and we currently have no income source. 2. None of us, including myself or any family member, were co-applicants or guarantors for his loan or any credit card. 3. My father did not have any loan protection insurance or other coverage on himself. Despite our financial constraints, we offered a settlement amount of ₹20,000 to ₹30,000, which is the maximum we can afford. However, the bank has declined this offer while demanding 3.5 Lakh if we wish to settle but continues to initiate legal proceedings against us. Given that personal loans are unsecured and high-risk credit, I would like advice on the following: - Are we legally liable to pay off any amount of this debt which the bank ask? - What is the legal recourse or protection available to us as surviving family members without any income nor any co-applicant status? - What steps should we take to address this matter?
Dear Client, Based on your question, you are not legally required to repay your fathers personal loan because you and your family members are not co- applicants of this case. You can discuss with the Bank that you are unable to pay more than the amount which you offered. For more detail discussion you can contact.
A1 Don’t worry the loan was taken by your father and not by you so nothing to worry. A2 So there is no liability on any of you A3 You should not offer any settlement amount that is why they are eating your head now -I would like advice on the following: - Are we legally liable to pay off any amount of this debt which the bank ask? No, you are not legally liable to pay off any amount of this debt which the bank - What is the legal recourse or protection available to us as surviving family members without any income nor any co-applicant status? You have to send a legal notice from us and we can assure you that the bank people will not trouble you. - What steps should we take to address this matter? So kindly contact us and we will do the needful.
Dear Client, you are not liable for your father's personal loan because you were neither a co-applicant nor a guarantor. Personal loans fall under the category of unsecured debts, which means that the creditors cannot pursue your personal assets. However, the bank can claim against the estate of the deceased for repayment. To tackle this issue, consider talking with the bank about the financial situation and narrate your inability to repay. A legal heir certificate could be obtained which could help you establish as a legal heir and might help in negotiations also. Other than that, you could explore debt relief options such as insolvency or debt settlement programs. It is very important to maintain records of all communications with banks and legal notices received. For detailed discussion you can contact us.
Dear Sir, It being a personal loan. Legal are not liable. Let them go to the Civil Court.
