Loan borrowers have several questions before applying for a personal loan and one of those is what happens to personal loan after death. There are two things that should be noted in such a case. First is that a personal loan is unsecured so lenders cannot auction the belongings to recover the loan amount. The second is that the lender cannot force the family members of the deceased to repay the debt.
What Happens to Personal Loan Death of Borrower?
After the death of the borrower, it becomes hard for the lender to get the money. I have mentioned the reasons earlier so let me share what measures the lenders take in such a case:
If there was a co-applicant on the personal loan, the lender has the right to recover the loan amount from him/her
If the borrower had insurance before his/her demise, the insurance company is held responsible for repaying the personal loan amount
If the legal heir of the deceased willingly becomes the co-applicant and agrees to repay the loan, then the lender has the chance to get back the money
If all these methods fail, the lender writes off the amount to the NPA account
Now you might also wonder what happens to personal loan death of lender. In such a case, the borrower still needs to pay the amount if the loan details have been drafted on paper. If the borrower does not pay it, he/she may face consequences. In such cases, it is better to consult with an expert to come up with a concussion.
Avail Personal Loan at a Low-Interest rate Starting from 12.99% via NoBrokerRead More:
What happens if the borrower fails to repay the loan?
Shifting, House?
✔
Lowest Price Quote✔
Safe Relocation✔
Professional Labour✔
Timely Pickup & Delivery
Intercity Shifting-Upto 25% Off
Check Prices
Intracity Shifting-Upto 25% Off
Check Prices
City Tempo-Upto 50% Off
Book Now
Authors Of The Question
What Happens to Personal Loan after Death?
Debangshi
126Views
7 months
2024-03-15T08:23:01+00:00 2024-03-15T08:24:56+00:00Comment
1 Answers
Share