Bank Loan Waived Off: In today’s time, when we need money, the first thing that comes to our mind is loan. But have you ever thought that if the person taking the loan dies, then who will have to pay the loan amount. Does the bank waive off the loan? Let’s know the answer to this question.
Bank Loan Waived Off: There was a time when we had to ask for a loan from relatives in case of need of money and then had to mortgage the goods. At present, we do not need to do so.
In today’s time, when we need money, the first thing that comes to our mind is loan. If we want to build a house or buy a car, then we can take a separate loan for all these. Banks or financial institutions give us other types of loans like home loan, personal loan, car loan, education loan.
But, have you ever thought that if the person taking the loan dies, then who will have to pay the loan amount. Many people believe that if the loan holder dies then the bank forgives the loan.
Let’s know when the bank forgives the loan?
How is the loan forgiven?
While taking a loan, the loan holder has to give some guarantee. At the same time, in many loans, it is also necessary to have a guarantor. In such a situation, if in any situation the loan holder dies, then the bank takes the loan amount from the heir of the loan holder or his family.
The heir of the loan holder or his family has a way with the help of which they do not have to repay the loan. If the loan holder has taken loan insurance while taking the loan, then the loan can be forgiven. After the death of the loan holder, the bank recovers the outstanding amount from the insurance premium. In such a situation, the family member does not have to repay the loan amount.
If the loan holder has taken a credit card loan or personal loan, then the bank cannot recover the loan amount from the family. Actually, such loans come under unsecured loans. The bank itself reimburses this loan. The bank declares the loan as NPA.
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