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Tuesday, 15 November 2022

To know / If the borrower dies, then who is responsible for reimbursement? Find out what the rules are

To know / If the borrower dies, then who is responsible for reimbursement? Find out what the rules are

After the death of the borrower, the balance of the loan has to be paid by his successor or not? Is there any rule regarding it or not? Today we are going to tell you about it.



  • Customers have different loans according to their needs
  • Who repays the loan on death of the borrower?
  • Each type of loan has different rules regarding loan repayment


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. There are different rules regarding home loan recovery and personal loan recovery also has different rules.


What will happen to personal loans?

If we talk about personal loans then personal loans are not secured loans. 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.



What happens to credit card payments?

Credit cards fall under the category of unsecured loans. Hence it is not treated as a secured loan and the bank writes off the outstanding amount in case of death of the cardholder. Therefore, the bank cannot recover the dues from any other person, heir or legal heir.


What will happen to the home loan?

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.



Who will pay the auto loan?

If a person has taken an auto loan and dies prematurely due to any reason, the remaining amount has to be paid by the family members. If the family can't make the payment, the bank auctions off the car and recovers the money.

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