Wednesday 11 January 2023

Who pays the loan if the borrower dies? Know what are the rules regarding loan recovery

  •  Loans are also of different types like personal loan, car loan, home loan
  •  Each type of loan has different rules regarding repayment of loan after death
  •  What are the rules regarding home loan recovery?
  •  What are the rules regarding personal loan recovery?

 We all must have seen and many people have done it that whenever money is needed, people take the help of loans from banks to get important things done.  Let us tell that there are different types of loans like personal loan, car loan, home loan etc.  Every customer has a different loan as per their requirement and after taking the loan they repay it in installments every month.  But it often happens that the borrower unfortunately dies.  But have you ever wondered who pays the outstanding loan amount after the death of the borrower?  In the event of death of the borrower, many questions arise as to who will repay the loan.  Will the balance of the loan be paid by his successor?  , is there any rule regarding it or not?  Today we are going to tell you about it.

Let us tell you that each type of loan has different rules regarding the repayment of the loan after the death of the borrower.  Home loan recovery has different rules and personal loan recovery also has different rules.

 Rules regarding Home Loan Recovery

 If a person takes a home loan and pledges his house in lieu of paper against the loan.  And if the person dies after taking the home loan, then in such a situation the co-borrower or the person's successor has to pay the loan.

 Let us tell that they are also given many options under this payment.

In these options they are also asked to repay the loan by sharing the mortgaged property with the bank and failing that the bank itself auctions the mortgaged property against the loan.

ગુજરાતીમાં વાંચવા અહીં ક્લિક કરો

 Apart from all this, many banks also use new options.  Under this option, whenever a bank gives a loan to a person, it also insures it and in case that person dies unfortunately, in such a situation, the bank recovers this money through the insurance company.

 Rules regarding personal loan recovery

 This is about home loan but if we talk about personal loan then personal loan is not a secured loan.  In such a situation, if the personal loan borrower dies due to accident, the bank cannot recover the money from any other person or his successor.  In a personal loan, the loan also expires after the death of the person who has taken the loan.

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