Hello friends, welcome to social information. Today we will discuss an important topic: If a person has taken a loan from the bank for his vehicle and he dies, what happens to his loan and how his remaining liability can be waived off. In this blog post, we will tell you in detail about the documents and procedures required for this.
Procedure after the death of the loan holder
Inform the bank: First of all, inform the bank from which the loan has been taken that the loan holder has died. This will stop the bank from further installments and there will be no problems like check bounce.
Life Insurance Policy: Most vehicle loans are accompanied by a life insurance policy. Under this policy, the remaining loan is waived after the death of the loan holder. This policy fixes the premium according to the loan amount. For example, the premium for a loan of ₹1 lakh is around ₹1000.
Loan Closing: The remaining loan amount will be waived off and the loan will be closed. If you took a loan of ₹20 lakh and repaid ₹7 lakh, the remaining ₹13 lakh will be waived off.
Transfer of vehicle to nominee
- The following documents will be required to transfer the vehicle to the nominee:
- Aadhaar card, PAN card and death certificate of the deceased
Copy of Aadhaar card, PAN card and bank passbook of the nominee
Get the form from the bank and fill in the required details. Attach all the documents and submit it to the bank. Within 10 to 15 days, the nominee will get a No Objection Certificate (NOC), after which the vehicle can be transferred to the nominee.
Important Tips
- Insurance Policy: Always take an insurance policy for your vehicle. This will prevent your family from being burdened with the loan after your death.
- New loan: If you want to take a loan again, contact the bank.
- Selling the vehicle: If you want to sell the vehicle, prepare a sale letter with the buyer’s Aadhaar card, PAN card and passport size photo.
Conclusion
We hope this information has helped you understand how you can keep your vehicle loan safe and what kind of help your family can get after your death. If you have any kind of question or answer in your mind, please ask us through the comment.
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