My father passed away in December 2024, and since then my family has been struggling to recover gold pledged in a bank gold loan.
The total loan amount was above ₹5 lakhs. After my father’s death, we approached the bank saying we wanted to repay the full amount and take back the gold. The bank told us there was “no nominee” registered. This was shocking because my father had always kept my mother as nominee in his accounts and policies.
The bank then said that since the loan amount exceeds ₹5 lakhs, we need a succession certificate from court before they can release the gold. We visited the bank multiple times asking if there was any alternative settlement process, indemnity bond, or any other way, but they refused.
We even cleared the full outstanding loan amount, so there was never any EMI default or pending dues from our side. Still, the gold was not released.
Finally, I had to file a court case and hire a lawyer. He initially told us the succession certificate process would take around 3–6 months. It has now been more than 6 months and we still haven’t received it.
At the last hearing, the judge said succession certificates are generally not meant for gold loans and asked my lawyer to show a similar Delhi High Court case where such relief was granted before making a final decision.
At this point I honestly feel lost. My family has already gone through enough after my father’s death, and this process has become mentally exhausting.
Has anyone faced something similar with banks or gold loans after a parent’s death? Any legal advice or suggestions on what can be done next would really help.