Guarentors pension loan gets attached after his death?
1 year ago
My father has died 4 months ago, he was a pensioner and has taken the pension loan, we have informed it to the bank and my mom gets family pension and we are paying my fathers personal loan EMI regularly. Now today all of a sudden some one from the bank calls and says that they are attaching some business loan to pension loan because my father was a guarentor it seems. The borrower is a pensioner and their heirs are alive. My question is how can they attach some loan after his death and that too after 4 months ? What should I do now ? We are in no position to pay that?
A.Dear client,
If your father has signed as a guarantor for that person's loan, he shall be liable to pay for it. From the bank's point of view and the generally accepted norms, the death of a guarantor does not extinguish his liabilities. The amount in default by the borrower is essentially the responsibility of your late father also, to repay. Hence as a legal heir, you inherit the assets as well as the liabilities of your father.
The bank will attach the loan to your father's account when the borrower commits a default. He must have committed the default by not repaying the debts now, so they are attaching it to your loan account now.
If your father has signed as a guarantor for that person's loan, he shall be liable to pay for it. From the bank's point of view and the generally accepted norms, the death of a guarantor does not extinguish his liabilities. The amount in default by the borrower is essentially the responsibility of your late father also, to repay. Hence as a legal heir, you inherit the assets as well as the liabilities of your father.
The bank will attach the loan to your father's account when the borrower commits a default. He must have committed the default by not repaying the debts now, so they are attaching it to your loan account now.
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