FIN PLUS TECH's video: Loan Lene Wale ki Death Ho Jaye To Kya Hoga Bank Loan Recovery After Death of Borrower

Bank Loan Recovery after death of borrower What if the person who has taken the loan dies? Who will be responsible for repaying those huge loans after the death of the borrower? To know the answer to this question, it has to be understood that not all loans are of the same type. Loans are kept in the category of secured and unsecured. Types of loans Secured loan means home loan, auto loan and unsecured loan means EMI of personal loan, credit card etc. Now let us understand one by one whether the bank can recover the loan by putting pressure on the family if the borrower dies. Home loan If someone has taken a joint home loan and the primary applicant dies, then the entire responsibility of repaying the loan will be with the other co-applicant. If the other applicant is also unable to repay the loan, then the bank has the right to adopt the process of recovery under the Civil Court, Debt Recovery Tribunal or SARFAESI Act. The bank can recover its loan by taking possession of the property and selling it. However, banks give a few days to the family members to arrange money to repay the loan. If the deceased person took a term policy or any other policy, then the banks give family members the time to arrange money through the policy in order to repay the loan. Auto loan If any person taking the auto loan dies, then the responsibility of repaying this loan falls on the family. If the family is not ready to repay this loan, then the bank takes possession of the car and auctions it to recover its loan. Personal loan/Credit card Personal loans, credit card bills, all these come under the category of unsecured loans. If a person dies without paying his personal loan or credit card bill, the bank cannot ask the surviving members of his family or his legal heir to repay the loan. Since it is an unsecured loan, there is no such thing as collateral and hence the property cannot be attached. In such a situation, banks write it off i.e. put it in the NPA account. Follow Me On Instagram: Instagram-https://www.instagram.com/vishnu_1190 Our Channel Best Video Playlist: Loan Videos: https://www.youtube.com/playlist?list=PL4E0fxkTRDDitjmpA325uE_nTo8MbZCOd Govt Scheme Investment Video: https://www.youtube.com/playlist?list=PL4E0fxkTRDDg-oBmrcAg5U52d-TUROZ0s Credit Card Videos: https://www.youtube.com/playlist?list=PL4E0fxkTRDDjnqaCh6KF80gDX2ZDyt1wB Mutual Fund Videos: https://www.youtube.com/playlist?list=PL4E0fxkTRDDgJn_cQHbjWDQ8_EDwiz3g9 Income tax Help Video: https://www.youtube.com/playlist?list=PL4E0fxkTRDDgCGsIFrQQO-cVfy0o1gK3C Disclaimer: Fin Plus Tech is not a registered Investment, legal or tax advisor or a broker/dealer. All Investment/ Financial Opinions expressed by Fin Plus Tech are from the personal research and are intended as educational material. Although Best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors may occur. All Information in this video for educational purpose only. Please Do your Own research before making any investment based on your personal circumstances. Our content is intended to be used and must be used for information purpose only. Please seek the advice of your financial, legal, tax or professional advisor before taking any decision. Copyright Disclaimer under section 107 of the copyright act 1976, allowance is made for " fair use" for purposes such as criticism, comment, news reporting, teaching, scholarship, education and research.