Unpaid loans affects children orphaned during COVID

NCPCR has sought Supreme Court’s directions for DMs to resolve such issues with banks

Four siblings aged between 1.5 to 14 years who lost their mother and father during the brutal second wave of COVID-19 last year are staring at the prospect of losing their home over an unpaid loan bought by their parents.

They are twin brothers aged 18 months, and two sisters aged nine and 14 years from New Delhi who are being looked after by three families related to them.

Their father had bought a home loan of ₹25 lakh, and repaid nearly ₹7 lakh through monthly instalments. A private bank which provided the loan has since the demise of the couple sent multiple notices seeking payment of the balance amount.

"They have threatened to attach the house if there is a failure to pay remaining EMIs. This is the only property the children own. The bank can look at waiving off the loan through their corporate social responsibility fund or extend the timeline for repayment until the children start earning and are able to payback the loan," says their paternal uncle, Mangat Singh Aswal.

The Gurgaon-based businessman now looks after the two sisters. Of the twin brothers, one is with his paternal grandparent, and the other with a maternal aunt.

Mr. Aswal is now contemplating moving Delhi High Court to seek a stay order on the bank's attempt to seize the house.

Two minor girls from Ghaziabad, who lost both their parents along with paternal grandparents over a matter of weeks in April and May during the second wave of COVID-19 last year now live with their paternal aunt in Bareilly. Their parents had taken a loan of ₹24 lakh to set up a shop. While they paid back ₹8 lakh, an amount of ₹ 16 lakh is yet to be repaid.