outstanding loan - Rightsofemployees.com https://www.rightsofemployees.com Know Your Rights Sat, 24 May 2025 04:45:51 +0000 en-US hourly 1 https://wordpress.org/?v=7.0.3 https://www.rightsofemployees.com/wp-content/uploads/2018/01/cropped-emp1-32x32.png outstanding loan - Rightsofemployees.com https://www.rightsofemployees.com 32 32 Who has to pay the outstanding loan after death? Know here what the rules say https://www.rightsofemployees.com/who-has-to-pay-the-outstanding-loan-after-death-know-here-what-the-rules-say/ Sat, 24 May 2025 04:45:51 +0000 https://www.rightsofemployees.com/?p=44309 On many occasions we need more money due to which we take a loan. But do you know if the person taking the loan dies, then who has to pay the outstanding loan? Whether you want to fulfill your needs today or do something for tomorrow, you need money for all this. Be it the […]

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]]> On many occasions we need more money due to which we take a loan. But do you know if the person taking the loan dies, then who has to pay the outstanding loan?

Whether you want to fulfill your needs today or do something for tomorrow, you need money for all this. Be it the daily expenses of the house or buying something for the children, you need money. Not only this, many times people have some work for which they need more money at once. In such a situation, people take a loan from a bank or NBFC.

After this, you have to return this loan in the form of EMI with interest, but have you ever wondered that if the person who has taken the loan in his name dies, then what happens to the outstanding loan? Does anyone have to pay the remaining loan money? If yes, then who? So let’s try to know the answers to all these questions. You can know in detail about this rule related to loan further…

First, let’s know about credit cards
  • If you have got a credit card from a bank and you use it, then know that the credit card comes under the category of unsecured loan. Therefore, if the credit card dues remain and the person who took the loan dies, then the bank cannot collect any outstanding amount from anyone.
What are the rules for personal loan?
  • If we talk about personal loan, then like credit card, it also comes under the category of unsecured loan. Therefore, if the person taking the loan dies due to any reason, then the bank cannot take back the remaining loan amount from any successor or legal heir and cannot force anyone to do so.
What happens to the home loan?
  • If you are taking a home loan to buy or construct a house, then know that this loan comes under the category of secured loan. Therefore, this loan has to be repaid even after the death of the person taking the loan, because there is a provision of co-applicant in it. In such a situation, the person who is the co-applicant has to pay the outstanding amount to the bank.
  • Also know that the bank can recover its dues by selling the property of the person who has taken the loan. Also, under the SARFAESI Act, the bank can recover its money by auctioning the customer’s property. However, many banks get the loan insured so that if the person who has taken the loan dies, the bank gets the dues from the insurance.

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