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| Who Pays The Bank Loan After The Death Of The Borrower |
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Bank Loan News: At some point in life there is a need for a loan. Many times the situation becomes such that a loan has to be taken for the education of the children, for the marriage of the daughter or for the construction of a house. If you take a loan from the bank, then you get many loans at the interest rate of different banks. But if the borrower dies then who will repay the bank loan? Let’s know.
In fact, there is a different rule regarding loan repayment after death. These rules are different for each home loan, then the action is taken differently for personal loan. Whenever a home loan is taken, the papers of the house are mortgaged in lieu of the loan, that is, the house is mortgaged. In the case of a home loan, when the borrower dies, the responsibility rests with the co-borrower. Or else the responsibility of depositing the loan is on the heirs of the person, if they can repay the loan then only they are given the responsibility.
Apart from this, they are given the option to repay the loan by selling the property. If this does not happen, then the bank auctions the property kept in lieu of the loan and recovers the outstanding amount of the loan from it. Apart from this, many banks have started using a new option. Actually, an insurance is done by the bank at the time of taking the loan and if the person dies, the bank recovers it through insurance.
What are the rules in vehicle and personal loan?
Personal loans are not secured loans. In such a situation, after death in case of personal loan, banks cannot recover money from any other person. Also, the successor does not have any responsibility regarding the personal loan. In such a situation, the loan also ends with the death of the person. The same vehicle loan is a secured loan in a way. In this situation, if the person dies, the bank asks the family members to repay the loan. If he does not repay the loan, then the bank recovers the loan money by selling the vehicle.