Personal loan payment liability after his death

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This query is : Resolved

Amit Kumar (Querist)

29 May 2019 Individual person takes personal loan on behalf of his auto from bank and next year expires without paying the loan amount, pertaining period is 2007-08.
Now bankers recovery cell wants to get recovery forcefully from his family although family (wife is handicap & both children are minor) is unable to pay the loan amount and now there have no auto.
Family was unknown about this loan. The recovery cell is making call to their and getting scared.
is family liable to pay the loan amount and what would be remedy for the family.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

30 May 2019 Family is not liable for the repayment of personal loan no need of any scare.

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Amit Kumar

Amit Kumar (Querist)

30 May 2019 Please refer any banking regulation guideline or notification/section so that sharable with banking recovery cell.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

30 May 2019 Normally personal loans do not come with an insurance. In case of borrower's death ,his legal heirs can be called upon to pay off his liability only if they have inherited any Assets from him. Otherwise not.

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