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Recovery of loan after death of principal borrower
01-Dec-2023 (In Civil Law)
Dear Sir, My relative one person taken loan from private bank. He died on 2015. and now bank people are calling to my number and asking about him and his contact details. I conveyed to them he died 2015. I asked them where you get my number. Bank people are telling that when he was applying the load that time he was given my number to for relative reference since they are calling to my number and irritating to me. Yesterday one of bank lawyer was called and asked him regarding where is he? I Informed him same answer he died 2015 as per I know But present I don't no about his family status (No more contact after his death). But lawyer was telling now they filing FIR. Kindly let us know any problem regarding on this? and also I am not signed and I don't no about loan taken from bank. After they call only I get to know about my number was given earlier. Kindly tell me any problem on this FIR or legal?? what are the rules related to recovery of loan after death of principal borrower?
Hello,
If you have not signed on any loan papers as guarantor then there s no need for you to worry about this case. Let them file fir or proceed with any legal proceedings. Bank will grant loan only if they have any security with them so based on that they will clear the loan if the debtor dies or fails to pay the loan credit.
If you have not signed on any loan papers as guarantor then there s no need for you to worry about this case. Let them file fir or proceed with any legal proceedings. Bank will grant loan only if they have any security with them so based on that they will clear the loan if the debtor dies or fails to pay the loan credit.
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Adv. Roopashree R. A.
Bangalore | 100+ Answers
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What happens when primary borrower dies?
The mortgage continues to exist after the borrower's death, but, unless there is either a cosigner or a spouse who survives, no heirs of the deceased are responsible for the mortgage. 14 Nov 2023
What happens to loans when a borrower dies?
The lender cant demand repayments from the borrower’s family if the borrower dies. In this case, the lender is likely to take the loss and write the loan off as a NPA (non performing asset). Remember that this is for a personal loan instant without security or collateral. 31 Aug 2023
How can the loan be recovered after death of principal borrower?
How can lenders recover personal loans after the death of a borrowers? The legal heirs of the deceased are liable for repayment of the loan to the lender to the extent that they receive the Estate of the deceased.
Can loan be recovered from legal heirs?
If the loan is secured
After the death of the borrower, the lender will approach the legal heir in order to recover the amount owed. The lender may auction the pledged asset if the legal heir does not repay the outstanding amount. 7 Sept 2023
no need to worry when you are not a signatory to the loan agreement and when they call you next time you tell them confidently that u will file a complaint against them for harassing you and also ask them firmly that you dont know whereabout of his family
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Adv. Abhijeet S.K
Bangalore | 100+ Answers
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Unnesserly without any agreement or involvement they con't do anything,Unnesserly they calling you can give complaint against them don't delay ..,and Loan granted to any applicant is secured either by guarantee or security or both. Death of the principal borrower will not bar the creditor to resort to recovery even from the legal heirs.dont worry
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Adv. Vedashree A
Bangalore | 500+ Answers
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Sir,
You are not guaranteer. Dont worry. Only on the basis of number no one can harass you, Here you are not a part of the contract between borrower and the Bank.
As you informed that the Principle borrower is died. If possible send a notice to the Said bank along with the death certificate of that person stating the fact in detail.
They cant lodge the FIR against you on the basis on number. They can proceed against the Guaranteer,
You are not guaranteer. Dont worry. Only on the basis of number no one can harass you, Here you are not a part of the contract between borrower and the Bank.
As you informed that the Principle borrower is died. If possible send a notice to the Said bank along with the death certificate of that person stating the fact in detail.
They cant lodge the FIR against you on the basis on number. They can proceed against the Guaranteer,
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Adv. M Lakshmikanth Arya
Bangalore | 500+ Answers
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If the principal borrower dies before paying back the home loan, the lender will usually check for co-applicants. If the coapplicant is unable to service the loan, then the bank will contact the family, legal heirs, or the guarantor.
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Adv. Chikirsha Mohanty
Delhi | 200+ AnswersCONTACT NOW
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