(MENAFN- Live Mint) A young man, whose father died suddenly, has shared that he had left behind an unsecured SBI personal loan. The pending amount is about ₹10.6 lakh and the EMI is around ₹36,000 each month. In a Reddit post, he has shares that he cannot afford it because it nearly matches his entire salary.

“When we talked to the bank's personal loan employee, he told us two things: The loan itself is not insured, so "according to law," the legal heir (me) has to pay it. My dad was a Panchayat Secretary and had an SBI Salary Package account (Diamond tier),” the Reddit user wrote.

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The young man feels confused because the bank has offered mixed statements. Pension or PF benefits may take several months to be processed.

“I'm lost, and the EMIs are already bouncing. Benifits like his pension, PF and gratuity will take 6-12m as per his colleagues experience,” he added.

Social media suggestions

Several other users advised him to demand the full loan agreement. They asked him to check whether any insurance was linked to the salary package. They also told him to communicate strictly through email to keep everything on record. Most of them advised him to hire a lawyer.

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“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,” wrote one of them.

“You should hire a lawyer first. Second, read the loan document and get the line where it mentions that the loan itself is not insured, so according to the law, the legal heir has to pay it. If you don't find, just let them know,” suggested another.

Another wrote,“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. See if you can negotiate for a deal in which they write off some part of the loan.”

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“Ask the bank for the loan agreement - personal loans are usually unsecured with no collateral. If there's some asset or collateral linked to the loan, the bank can use it to recover its dues before further distribution,” came from another.

“It's a personal loan, so your Father's pension/Assets are liable to cover the loan, and you don't need to repay back - unless you receive a pension value greater than the EMI/loan (or) father's assets you inherit. Better to consult a lawyer in this regard,” one user posted.

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