In today’s time, taking a loan has become common. People take loans to meet their various needs. People often take loans from banks for buying houses, taking cars or personal expenses etc. Interest is also charged by banks on these loans. The person taking the loan has to pay its installments every month. Before giving a loan to a person, any bank finds out about his financial history. The bank gives a loan to that person only after being completely convinced.
But do you know that if the person who takes it before repaying the loan dies, then in such a situation, who comes to the responsibility of loan? After the death of a person taking a loan, it becomes very difficult for banks to withdraw the loan amount. In this news, we will know how the bank collects the loan amount after the death of the person taking the loan.
The bank takes these steps to return the loan
According to Tata Capital, if someone taking a loan dies, the bank first contacts co-applicants to repay the loan. If the co-application is also not able to repay the loan, then the bank guarantors contact the family members or the legal heir to the deceased and ask them to pay the rest. If none of these is able to pay the loan of the person, the bank can confiscate the property of the deceased and sell it and charge the outstanding loan amount.
Bank gets home auction
If someone taking a home loan and car loan is killed, then banks seize their house and car. Which becomes a very difficult situation for any family. After the death of a bank loan person, his properties are seized and auction is organized. Banks charge their loan from the amount found in the auction. Similarly, in another loan, banks can also confiscate the rest of the property of the deceased and sell it and charge the loan amount.
It becomes a very difficult time for any family to see the auction of a house or anything. Therefore, it is advisable that people must take a term insurance of at least Rs 1 crore, so that if something happens to them, then the loan can be compensated with the amount of insurance.
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