If the user dies after spending a lot on the credit card, from whom will the banks recover the dues? Half of India does not know this rule.

The loan obtained from the credit card comes under the category of an unsecured loan because nothing has to be mortgaged for it. In such a situation, if the credit card user dies without repaying the loan, from whom will the banks recover the dues?

Nowadays the use of credit cards has increased rapidly. Through credit cards, you can use short-term loans in difficult times and can repay that loan without any interest in the grace period. However, after the grace period is over, a huge interest has to be paid on this loan. Apart from this, many types of rewards, cashback discounts, etc. are also available on credit cards, due to which credit cards have become very popular.

However, the loan obtained from the credit card comes under the category of unsecured loan because nothing has to be mortgaged for it. In such a situation, if the credit card user dies without returning the loan, from whom will the bank recover the dues? Know what is the rule regarding this.

This is the rule in case of unsecured credit card.

Usually the credit limit is determined on the basis of the applicant's income, credit score, existing loan and repayment history etc. In such a situation, the responsibility of repaying the amount spent through the credit card also lies with the credit card holder. But if the credit card user dies before returning the amount, then the bank writes off the outstanding amount of the loan. In such a situation, no other member of the family can be forced to pay the dues.

What is the rule in case of secured credit card

But nowadays many secured credit cards are also available. Secured credit cards are mostly taken by those people who are unable to get a normal credit card. To get a secured credit card, FD has to be deposited as collateral. If the secured credit card user does not pay the credit card bill for any reason, the bank has the right to recover its loan by encashing his fixed deposit account.

Know the rules of personal loan too

Personal loan is also kept in the category of unsecured loan. In such a situation, like a credit card, the responsibility of repaying the personal loan also lies only with the person who takes the loan. If the loan taker dies due to any reason, the bank cannot force any member of his family to repay the loan. In such a situation, the loan also ends automatically with his death.