Home Loan Recovery Rules: With changing times, there have been major changes in the banking system. Nowadays it has become very easy to take loans from banks. Many banks also provide online facilities to their customers to apply for Home Loan, Business Loan, and Personal Loan.
You can easily apply for a loan through an online app. In such a situation, if you are also thinking of taking any kind of loan, then know about the important rules related to it. It is generally seen that people think that if a person has taken a loan from the bank and that person dies before repaying that loan, then in such a situation the bank waives that loan, but It is not so.
The heir has to repay the loan-
Let us tell you that if a person after taking any type of loan from the bank like a car loan, home loan, business loan, etc. dies untimely before repaying it, then in such a situation the bank does not forgive the loan. After the death of the borrower, his heir has to repay the loan. The bank has made many different rules to recover this type of loan. Nowadays, most people get their term insurance done at the time of giving a home loan, car loan, etc. Due to this, if a borrower dies, the property can be made debt-free by paying the remaining amount from term insurance money.
Home loan recovery is done like this-
After the death of any person, all his property goes to his heir only. In such a situation, the heir has to bear the burden of repaying the loan along with the property. In such a situation, if there is insurance along with the loan, then the loan can be easily repaid with the money insured. If term insurance has not been done while purchasing the property (home loan), then in such a situation the bank attaches the house and auctions it to recover the loan amount.
The rest of the loan is recovered like this-
If a person has taken a home loan from the bank and dies, then in such a situation the bank first sees whether his family is capable of repaying the loan or not. If he is not in a position to repay the loan, then the bank recovers his loan through the property, gold, shares, fixed deposits, etc. kept as a loan guarantee while taking the business loan.
Many people take insurance while taking a loan, in such a situation the remaining amount is recovered through this insurance. At the same time, BIN like credit cards will also have to be paid by the heir of the deceased. Similar rules are followed in personal loans also.
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