- Man and mother found Rs 10.6 lakh SBI personal loan after father's death from heart attack
- Loan was initially Rs 18.5 lakh; EMIs of Rs 36,000 were unaffordable for sole heir
- Bank staff said loan was uninsured; legal heir might need to repay but unclear on insurance
Following his father's sudden death from a heart attack, a man and his mother discovered a significant outstanding personal loan of Rs 10.6 lakh with the State Bank of India (SBI). The loan, which had an initial value of Rs 18.5 lakh, came to light when the mother-son duo visited the bank to close the bank accounts. Confused about the liability, the man turned to the internet, where social media users immediately came to his help, offering guidance on how to handle the situation..
"My father passed away from heart attack about 2 weeks ago. My mother and I went to SBI a couple of days ago to close his accounts, and we were told that he has a personal loan," the user wrote in the r/personalfinanceindia subreddit.
The man said he was the only legal heir, but paying a Rs 36,000 EMI, which was roughly 90 per cent of his salary, was an unaffordable option. The bank's personal loan employee told the man that the loan was not insured, meaning the legal heir would have to pay it off.
"The manager mentioned this might have some kind of insurance payout, but he wasn't sure and couldn't give us a clear answer. I'm lost, and the EMIs are already bouncing. Benefits like his pension, PF and gratuity will take 6-12 months as per his colleagues' experience," the man wrote, seeking options to get out of the situation.
Check The Viral Post Here:
Father passed away, discovered a 18.5L SBI Personal Loan. Need urgent advice.
byu/selfdoubtingcomputer inpersonalfinanceindia
'You Don't Have To Pay Anything'
As the post gained traction, social media users eased the man's tension, stating he did not have to pay the loan and advised him to hire a lawyer.
"Personal loan is an unsecured loan. So you don't have to pay for it. If loan has linked insurance, then only the insurance company will pay for the loan," said one user, while another added: "You don't have to pay anything, nowhere in the lending underwriting is it mentioned that legal heirs have to pay off loans unless they are guarantors or coapplicants to the loan."
A third commented: "You should hire a lawyer first. Second, read the loan document and get the line where it mentions that the legal heir (me) has to pay it back. If you don't find, just let them know."
A fourth said: "Do not sign anything, the bank might try to trick you into signing a document taking responsibility. Collect all the documents related to the loan and consult a lawyer."
After receiving a flood of suggestions, the man said he was formally writing an email to the bank, requesting the loan agreement and the Diamond Salary Package insurance claim procedure.
