Personal loan is a loan that is easily available. It does not require much paperwork. In times of trouble, if you are unable to arrange money from anywhere, then you can manage your work by taking a personal loan. That is why it is called an emergency loan. Personal loan is a collateral free loan, but for this the bank charges you a lot of interest. Suppose if a person dies after taking a loan from the bank, then who will be responsible for paying the outstanding loan amount? Know here what is the bank's rule regarding this.

This is the rule for personal loan

Personal loan is an unsecured loan. This loan is given to the person after looking at the parameters of his income etc. In such a situation, the responsibility of repaying the personal loan also lies only with the person who takes the loan. If the person taking the personal loan dies, then the bank cannot harass any other member of the family to recover the dues. Nor can the successor or legal heir be asked for this. In the case of personal loan, after the death of the borrower, this loan is put in the bad account, that is, with the death of the person, his loan also ends.

What is the rule regarding home loan

In the case of personal loan, the loan of the borrower ends with death, but in the case of home loan, this does not happen at all. Instead of home loan, you have to mortgage the papers of your house or the papers of any property equal to the value of that loan. In such a situation, when the loan taker dies, the co-applicant is asked to pay the loan dues, who is usually a family member or the heir of that person is responsible for repaying the loan.

If he expresses his inability to do so, then he is given the option to sell the property and repay the loan amount. If the family does not do this, then the bank auctions the mortgaged property and recovers the outstanding amount. To deal with this situation, home loan insurance is offered nowadays. In such a situation, if the loan taker dies, the bank recovers the loan dues from the insurance company and the house remains safe with the family.

This is the rule in case of credit card

The credit limit is also determined on the basis of the applicant's income, credit score, existing loan and repayment history etc. In such a case, the credit card holder is also responsible for repaying the amount spent through the credit card. But if the credit card user dies before returning the amount, then the bank writes off the outstanding loan amount.

But this does not happen in the case of secured cards. To get a secured credit card, FD has to be deposited as collateral.