A young man whose father died suddenly confides that he left behind an unsecured SBI personal loan. The pending amount is approx ₹10.6 lakh and the EMI is around ₹36,000 per month. In a Reddit post, he has stock he can’t afford because it’s almost his entire salary.
“When we spoke to the personal loan officer of the bank, he told us two things: The loan itself is not insured, so “by law” it has to be paid by the legal heir (me). My dad was a Panchayat secretary and had an SBI Salary Package (diamond level) account,” wrote a Reddit user.
A young man feels confused because the bank has offered mixed statements. Processing of pension or PF may take several months.
“I am lost and EMIs are already reflected. Benefits like his pension, PF and gratuity will run 6-12 lakhs as per the experience of his colleagues,” he added.
Social media designs
Several other users advised him to request the entire loan agreement. They asked him to check if there was any insurance related to the salary package. They also told him to communicate strictly via email to record everything. Most of them advised him to hire a lawyer.
“You don’t have to pay anything, nowhere in the loan underwriting does it say that the legal heirs have to repay the loans if they are not guarantors or co-applicants of the loan,” wrote one of them.
“First, you should hire a lawyer. Second, read the loan document and get the line where it says the loan itself is not insured, so by law the legal heir must pay it. If you don’t find it, let them know,” suggested another.
Another wrote: “Don’t sign anything; the bank may try to trick you into signing a liability document. Gather all the documents related to the loan and consult a lawyer. See if you can negotiate a deal where they write off some of the loan.”
“Ask the bank for a loan agreement – personal loans are usually unsecured with no collateral. If there is an asset or collateral attached to the loan, the bank can use it to enforce its debts before further distribution,” came another.
“It’s a personal loan so your father’s pension/assets have to cover the loan and you don’t have to repay it – unless you get a pension value higher than the EMI/loan (or) father’s assets you inherit. Better consult a lawyer in this regard,” one user wrote.
