Money9 Helpline | Managing loans of a deceased family member

Rakesh Vyas, Ahemdabad: I lost my father due to Covid-19. He had two pending dues- a home loan and a personal loan. The money due on a personal loan is less and manageable for me but the home loan amount is big. If I am unable to pay off the home loan, will my property be seized?

Maheshwari: Yes, legally it can be seized. But considering the tough times, we are facing due to Covid-19, most of the financial institutions, NBFCs, etc. will consider such a situation and offer some kind of support. You should discuss with your bank or institution, they might provide you some moratorium on humanitarian grounds. However, before talking to your bank you must first analyse all the assets and liabilities your father has left, see if there is any property or money that can help you pay off the loan.

Caller, Kolkata: My father spends beyond his means causing constant arguments at home. What happens if my father leaves behind outstanding loans and credit card dues?

Maheshwari: See you have to understand that if you get your father’s assets and the property you also get his liability. And as per law, you must clear all his dues.

Sumitra Majumdar, Kolkata: My husband passed away recently. He had taken a home loan for which I am paying the EMI of Rs 40,000. His credit card outstanding is Rs 1.4 lakh. How should I plan to pay off the outstanding loan? Please guide.

Maheshwari: If you have any money first and foremost pay off the credit card dues. You should pay off the Rs 1.4 lakh as interest rates on credit card dues are high and can be very difficult to handle. Then look at EMI, if you can afford to pay EMI, continue paying the EMIs because it will give you tax benefits in case you are working. In case you are not working, but you have some money and this house is where you are living then you should pay off your loan. If it is not your primary house then you should sell it off and pay off the loan from that money.