Bank Loan: If the borrower of home, car and personal loan dies then who will repay the loan? Know what are the rules...??
Loan Payment Rule: People take many types of loans to meet their financial needs. Banks give Home loans to people to buy or build a house, Auto loans and Personal Loans to buy a car. Interest is charged by the banks on these loans and the borrower pays the loan in the form of EMIs. You can approach banks online and offline to take a loan.
Suppose a person has taken a loan and has not yet paid the loan amount in full and dies during this period, then who will pay the outstanding loan amount to the bank and who will be responsible for it? If you are still unaware of the answers to these questions, then here you are being given detailed information about it, let us know.
This loan has already been kept in the category of an unsecured loan, under which a high interest rate is charged by the banks. The responsibility of repaying such a loan rests only with the person who has taken the loan. In such a situation, if the person taking the loan dies, then the bank or institution cannot force the family of that person to recover the loan.
To take a home loan, any person has to mortgage the papers of the house or the papers of the property equal to that loan. Same if the person taking the home loan dies, then the remaining money of the loan has to be repaid to his successor. If he is unable to repay the loan amount, then the banks auction the property to recover their debt. However, if the home loan is insured, the loan amount will be recovered from the insurance company.
If the person taking a loan for a car loan or other vehicle dies, then the loan amount has to be repaid to the heir or any member of the family. If they are unable to repay the loan amount, then the loan amount is recovered by selling the vehicle after impounding it.
The amount spent on the credit card also comes under debt. If the credit card holder dies, then this amount is written off by the bank, which means that now this amount cannot be recovered.