Wife to pay the loan balance after husband died
A friend of mine took a personal loan of Rs. 13 Lakhs from the HDFC Bank in 2015. He bought a land in Bangalore with that amount. His payment was around Rs. 30,000 every month. In March this year he died of some medical complications. His wife does not have a job to pay the monthly installment. She has a home on wife's name. Now HDFC Bank representative visited her house and told her that she has to pay the remaining balance, otherwise has to go to Court or lose her house.
As per the HDFC Computer system, there is no co-signer neither the house is a security for this loan. There are only two references in the system. She does not have any other papers.
After his death, she filed papers for insurance with the Insurance company who insures the loan. The insurance company denied stating my friend did not die of heart attack or road accident (Critical Illness). There is another benefit to cover the loan which also the Insurance is not willing to pay because it is not a critical illness.
What option my friend's wife has? Is there a lawyer in Bangalore who can advise her what to do, or talk with the Bank to settle the issue? We can pay for the service.