What happens if a person dies after taking a personal loan?

Hari asked:


Hi, I have a doubt please let me know … what happens to the loan , if a person who has taken the personal loan dies? Do the bank takes all the assets belongs to the person?

Christian

Tags: Assets, Doubt, Personal Loan

This entry was posted on Tuesday, April 14th, 2009 at 5:48 am and is filed under Personal Finance. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

3 Responses to “What happens if a person dies after taking a personal loan?”

1. lestermount Says:
   April 16th, 2009 at 8:06 am

   Kristen

   It depends. Some people take out insurance to cancel the debt. Sometimes there could be collateral. The estate may owe the debt.
   The bank can not take all of th assets that belong to the person without legal action.

2. MadMan Says:
   April 17th, 2009 at 11:49 pm

   Jane

   The estate has to pay back the loan. If there is not enough in the estate, then the lender takes a loss.

3. venus772 Says:
   April 20th, 2009 at 12:08 am

   Marvin

   I would assume that if they applied for an beneficiary then that person would be entitled to the funds.. Or maybe the next of kin. Or, they just give it to relatives of the deceased. If not anyone, I guess they would bank the money back into the account.