Loan Recovery After Death of Borrower: Nowadays, banks give loans very easily to buy anything like house, shop, car etc. You can take Business Loan, Education Loan etc. according to your need. But, what happens in case of untimely death of the borrower due to any reason? Most people think that in such a situation, loan banks forgive the loan, but, it is not so at all. Banks have made some rules to recover such loans (Loan Recovery Rules after death of Borrower). Today we are going to tell you about the rules followed by banks to recover such loans. Those rules are-
This is how banks recover home loan
Almost every middle class person takes the help of home loan to build a house. But, if a person dies after taking a home loan, it becomes very difficult to repay this loan. In such a situation, the person who is the heir gets the right to the property. At the same time, the person is now responsible for repaying the loan of the bank. If the successor is not in a position to repay the loan, the bank recovers its loan by capturing the property of the deceased. Nowadays, many people also take term insurance while taking a loan, due to which insurance companies give all the money in such a situation.
This is how banks recover business loan
Nowadays, business loans are given by banks for small to big business. While taking such a loan, the banks decide who will repay this loan in the event of the death of the borrower. Along with this, people take insurance cover on such loans. In such a situation, the bank directly recovers its outstanding loan from the insurance company. Apart from this, if the bank wants any asset equal to the total amount of the business loan, such as gold, land, house or plot, shares, fixed deposit guarantee (which was pledged), the bank can also recover the loan.
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This is how the credit card loan is recovered
If a credit card holder dies untimely, then in such a situation the bank or company recovers from the heir of the credit card holder. Along with this, in case of lack of money, money is recovered with the help of his property.
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This is how the personal loan is recovered
Let us tell you that a personal loan is an insured loan. If a borrower dies, then in such a situation the bank recovers the loan from the insurance company. Apart from this, the bank can also recover this loan from the heir of the borrower.
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