In today’s era you want to buy a home, take a car or complete the education of children, it is now common to take a loan. The loan found in easy installments made it possible to meet many great needs of the ordinary man. The bank also conducts a thorough investigation into the person’s income, creditworthiness and repayment ability before giving a loan. But a question often arises in the minds of the people – if the person who takes the loan suddenly dies, who will repay the debt? Will his family be obliged to lift this burden, or is there a legal option? Let us understand in detail in this report, the process after the death of the loan holder and the rules associated with it. What happens after the death of a loan holder? If a loan holder dies, the bank first assesses the information of the loan account. The bank looks at if there is a co-applicant (co-application) in the loan. It is then seen whether the name of a sponsor is on the loan. If these two options fail, contact the bank with the legal heirs of the deceased and demand them to repay the outstanding debt. If the loan is kept with a coal application, the responsibility of co-applicant and sponsor, as the man and woman have taken a home loan, the entire loan after death becomes the responsibility of coal attack. Similarly, if someone is included in a bail loan, he is also legally responsible for repayment of the debt. However, this responsibility of co-applicant and bail applies only if they have signed loan documents, and the loan has been approved to keep their income in mind. If the role of a legal heir cannot repay the co-applicant and bail loan, contact the bank with the legal heir of the deceased, that is, family members-like woman, sons and daughters or parents. This situation is especially applied if the loan is unusable (without any property). But a special thing here is remarkable. If the successor “rejected” the property of the deceased, that is, he did not take his follow -up, he is not legally responsible for the person’s guilt. When can the bank seize property? If the loan is tied up, that is, any property (such as a home, car, shop etc.) In return, the bank is the right to seize the property and up auction it. It can recover the outstanding amount. This process begins after NPA has become (not executive asset). For example, if someone entered into a home loan of Rs 50 lakhs and died, but the loan is still incomplete, and the family is unable to pay back, the bank can use the home and auction. Is there a solution for loan insurance? Banks regularly recommend taking loan protection insurance before taking a loan. This insurance scheme is made in such a way that if the loan holder dies for some reason, the insurance company compensates the entire loan. This does not place a burden on the sponsor or other family members. However, this insurance policy is optional and some people do not take it due to extra premium costs. But according to experts, this insurance can save the family from major economic problems. According to Indian legislation, the rights and options of the successor, if a person takes the property of a deceased in succession, is also responsible for his debt. But if he clearly rejects property and succession and records it in court, the bank cannot claim a loan from him. This succession process of property and debt falls under various laws such as the Indian Supplies Act, Hindu Saxation Act and Muslim Law. The case can go to court. If the bank feels that co-applicants, sponsor or pleasurers do not deliberately repay loans while having assets or money, the bank can beat the court. The court hears the case and makes a decision and issues the order. Such cases may also contain legal disagencies. What is the effect on which loan? Home loan: If the house is bought on a loan and the owner is dead, a coal application or legal heir is recovered. Otherwise, the property can be seized. Personal loan: It is unsecured, that is, there is no guarantee. In such a situation, the bank tries to recover from the legal heir. Education Loan: If the student is dead and parents are co-applicants, they are charged to repay the loan. Car loan: A vehicle can be auctioned through sewing. Important precautions you can take today take insurance while taking a loan. Give full information to the coal application and take only a loan with its consent. Also tell the bail full conditions. Create a clear record of your property and debt. Always keep ITR and bank statement informed. The easier it is to take a loan, the more important it is to understand the responsibilities and possible risks behind it. After the death of the loan holder, the whole family can often be in financial crisis. In such a situation, the right planning, insurance and legal information can save you and your family from these problems. If you also take a loan, then definitely think once something happens tomorrow, what will be the effect on your family.
If the borrower dies, who will pay the money then? Bank rules understand
