Should a Son Repay His Father’s Loan After His Death?
A debate has erupted on social media after a user questioned whether a son is legally required to repay a personal loan taken by his late father. The issue has gained widespread attention, prompting responses from lawyers and banking professionals.
According to the post, a man who died suddenly of a heart attack had taken a personal loan of ₹18.5 lakh, with ₹10.6 lakh still outstanding. When his wife and son visited the bank to close his accounts, they were informed that since the loan was not insured, the son must repay the remaining amount. The son, who is the sole legal heir, explained that the monthly EMI is ₹36,000 (90% of his salary), and questioned whether he is obligated to pay. He also mentioned that benefits from his father’s workplace may take 6–8 months to be received.
The post went viral, and experts shared their opinions:
- A lawyer stated that personal loans are unsecured loans, and therefore, heirs are not legally required to repay them.
- A banking expert clarified that only if the heir has signed as a co-borrower or guarantor, he would be liable to pay.
- Another suggested that if the loan had insurance cover, the insurance company would settle the amount.
- Several users advised the son to consult a lawyer and review all loan documents thoroughly before making any decision.
They emphasized checking if he had signed any loan-related papers or given authorization. If there is no signed liability agreement, he is not obliged to repay. Many encouraged him to request full documentation from the bank first.
The person who originally posted the query later confirmed that he has sent an email to the bank requesting all relevant documents.
Key Points
- Unsecured personal loans are generally not inherited.
- Liability applies only if the heir is a co-borrower or guarantor.
- Loan insurance can cover outstanding dues if applicable.
- Legal consultation and document verification are essential.
