If the borrower dies, who will pay the money then? Bank rules understand

In today’s times, it became common to take a loan to meet home, car or any other need. But have you ever thought that if someone dies before he repays the loan, who compensates for the loan? This question is in many people’s minds, especially if the only earnest person in the family of this world says goodbye. In this article we will tell you what happens to the loan after the death of a person, whose responsibility is made to repay it, and under what circumstances the family does not become charged. What is the rule? Once the borrower dies, the bank first examines the status of the loan account and sees whether the loan is a single application or a co-application or sponsor. 1. If the responsibility of co-applicant is in the loan-habit account, the coal application must pay the entire loan. This responsibility is legally valid and the bank first contacts this person. 2.. If the responsibility of the sponsor cannot repay the co-application loan or is not present, contact the bank with the sponsor. The sponsor is the same person who promised at the time of the loan that if the borrower is not repaid, he will repay it. 3. Restore the legal heir, if the sponsor is also unable to repay the loan, contact the bank with the legal heir of the deceased. This may include wife, children, parents or other heirs. 📌 Important: If the successor accepted the property as heirs, the person is responsible for repayment of the loan. If he refused to take the property, there is no obligation to repay the loan on him. Can the bank confiscate property? If the coal application, sponsor and legitimate successor to the three is able to repay the loan, the bank has the right to seize the property, update it and recover the loan. In cases of home loans, this house is regularly seized and the bank charges the amount at the auction. What if there is a loan insurance? If the person entered into a loan protection insurance while making a loan, the entire loan after his death is repaid by the insurance company. In this situation, there is no financial burden on the family of the deceased, nor do they have to worry about repayment of the loan. ✅ Advice: It is a good decision to make loan insurance while taking a home loan, personal loan or car loan. Conclusion After the death of a loan holder, the bank restores the loan according to the legal process. Co-applicant, sponsor and successor-the responsibility of all is stuck in the law. But if loan insurance exists, it can provide the family with great relief. Therefore, while taking a loan, not only plan EMI, but keep in mind a loan insurance to keep in mind the uncertainty of the future.