Bank Acting Legally On Deceased Father's Outstanding Personal Loan

I (M-21) am seeking guidance on my late father’s ₹7 lakh personal loan. He passed away on July 18, and despite notifying HDFC Bank, I received a letter addressed to him regarding the loan dues. My father was the sole breadwinner, and our family has no income. None of us were co-applicants or guarantors on his loan or credit cards, and he had no loan insurance. We offered a settlement of ₹20,000-30,000, the maximum we can afford, but the bank rejected it, demanding ₹3.5 lakh and has started legal proceedings. Given that personal loans are unsecured, are we legally liable to pay any of this debt? What legal recourse or protections exist for us, given our lack of income and non-involvement in the loan? What steps should we take to address this?