New Delhi, Dec. 26 -- Life is uncertain, wherein an emergency can arise at any time. For a financial emergency, a personal loan, which is widely available and can be obtained easily, can come to the rescue. However, in the midst of repaying a personal loan, what happens if the borrower dies? How do the bank and the borrower's family members deal with the situation? In this article, we will understand what happens when a personal loan borrower passes away.

A personal loan is an unsecured loan. It means there is no underlying collateral or security that the bank can repossess, sell, and recover the outstanding loan amount in the event of the borrower's death. Security is available only in the case of secured loans, such as a home loan, veh...