Home Loan: Recently the prices of houses have increased a lot and due to this many people take the option of home loan to fulfill their dream of building a dream home. Meanwhile, if you are also preparing to take a home loan in the future, then today’s news will be useful for you.
Because, today we are going to briefly understand some rules regarding home loan. If the home loan borrower dies, in such cases, from whom will the bank recover the loan amount of the deceased borrower? Today we will see information about this.
Today we will know the information about what exactly are the rules of RBI in this regard so that borrowers can know about the rules of RBI.
What do the RBI rules say?
Many believe that if a person takes a home loan and the borrower dies, the bank waives off the loan. However, this is a misconception. Because the bank recovers the loan even after the death of the borrower.
RBI has prepared some rules in this regard. Now let us know in detail from whom the bank recovers the home loan money taken in the name of the person after his death.
In case of death of the borrower in case of home loan, the bank first approaches the co-borrower. Asks him to repay the outstanding loan. If no co-borrower is present, the bank turns to the loan guarantor or legal heir for repayment.
If the person has insured the loan, the bank asks the insurance company to pay the loan. If all these options are not available, the bank opts to auction the property to recover the outstanding loan.
Of course, if a home loan is taken and the said person dies, then the responsibility for the home loan of the deceased person falls on the co-borrower or guarantor or the legal heirs. If these people show inability to repay the loan, in such cases the bank auctions the property.
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