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Parent Debt - December my mother took a loan
1 year ago
I am 28 years old bachelor living with my dad in Kolkata. In 2020 December my mother took a loan of Rs 150,000 from a company called Moneyview. My mother was working and earning enough to pay up the loan. On July 2022 my mother died. Now loan company is troubling me and my father. We were not the co applicant of the loan. They are threatning us of court case. We dont earn much to pay off the loan. Can we get help?
A.Dear Client,
If your mother had a life insurance policy, you would have to use that sum of money to pay off the loan.
You must convey to the bank if you are unable to repay the loan or arrange for an EMI repayment. In such cases, the bank usually tries its best to restructure the loan (by reducing the EMI payment and increasing the loan tenure). It would also provide enough time and flexibility to pay back the loan.
Another alternative is to pass the loan on to other legal heirs with a steady income. The bank will be flexible and adjust loan terms based on the new homeowner's repayment capabilities. In some cases, a few banks also have an option of EMI holidays provided in exceptional circumstances. However, this entirely depends on the bank.
It is to be noted that the legal heir cannot have any claims to the property till the debts are paid in full. At the same time, the bank cannot force the legal heir to pay off the loans. They try to empathize with the situation and work out a repayment period best suited for both parties.
If needed please consult a lawyer near you to understand what else you can do in this situation.
Thank you so much, I hope this answer helped you.
If your mother had a life insurance policy, you would have to use that sum of money to pay off the loan.
You must convey to the bank if you are unable to repay the loan or arrange for an EMI repayment. In such cases, the bank usually tries its best to restructure the loan (by reducing the EMI payment and increasing the loan tenure). It would also provide enough time and flexibility to pay back the loan.
Another alternative is to pass the loan on to other legal heirs with a steady income. The bank will be flexible and adjust loan terms based on the new homeowner's repayment capabilities. In some cases, a few banks also have an option of EMI holidays provided in exceptional circumstances. However, this entirely depends on the bank.
It is to be noted that the legal heir cannot have any claims to the property till the debts are paid in full. At the same time, the bank cannot force the legal heir to pay off the loans. They try to empathize with the situation and work out a repayment period best suited for both parties.
If needed please consult a lawyer near you to understand what else you can do in this situation.
Thank you so much, I hope this answer helped you.
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