Credit Card Repayment Rules: Who will pay the money if the credit card holder dies after spending? know the bank rules

Credit Card Repayment Rules: The loan obtained from a credit card comes under the category of unsecured loan. It is called an unsecured loan because you do not need to pledge anything to get money in it.

Credit Card Rules: In the last few years, the graph of credit card users has increased rapidly. Today, the situation regarding its use is such that people consider it a matter of pride to spend with credit cards and get EMI done without thinking. Through credit card, you can also use short term loan in difficult times. During the stipulated grace period, you can repay that loan without any interest. But if you do not make payment in the grace period, then you have to pay heavy interest on this loan.

The trend of credit card increased rapidly among the people

On spending with credit card, you also get offers of many types of reward points, cashback and discounts etc. This is the reason why the trend of credit card has increased rapidly among the people. The loan obtained from a credit card comes under the category of unsecured loan. It is called an unsecured loan because you do not need to pledge anything to get money in it. Whereas the loan obtained on house or car etc. comes under the category of secured loan. But if the loan taker dies and the loan is outstanding on him, then from whom will the bank recover it? What is the rule regarding this, let us know.

This is the rule in case of unsecured credit card

If you have a credit card without pledging anything, then there are some rules for it. Generally, how much money you will get to spend depends on how much you earn. Not only this, it also depends on how your record of repaying the previous loan is and how much debt you have right now. Therefore, whatever is spent from the credit card, the responsibility of returning it also lies with the card holder. But, if the card holder dies without paying the money, then the bank considers the remaining amount as lost. In such a situation, no member of the family can be forced to repay that money.

What is the rule on secured credit card?

Nowadays, many such credit cards have also come in the market for which you have to keep something as collateral. Such a credit card is mostly given to those people who cannot get a normal credit card. To get this type of credit card, you have to deposit some money in the bank as FD. If the user of this credit card is unable to pay the bill for any reason, then the bank has the right to recover its loan by selling your deposited FD.

Death of the borrower during repayment of personal loan?

Personal loan is also a loan given by the bank without any collateral. Therefore, just like a credit card, the responsibility of repaying the personal loan also lies with the person who has taken the loan. If for some reason the borrower dies during repayment, then the bank cannot force any member of his family to repay the loan. In this case, the loan also ends with his death.

The post Credit Card Repayment Rules: Who will pay the money if the credit card holder dies after spending? know the bank rules first appeared on informalnewz.

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