What if someone dies and owes a loan?

First of all, the bank violated Item 7 of Article 42 of the Interim Measures for the Administration of Personal Loans, and failed to detect the borrower's violation of the loan contract, or failed to take effective measures after discovery. The borrower's grandfather died more than 20 years ago to recover the money, and the bank bears the responsibility of dereliction of duty and needs to bear certain consequences.

Secondly, it is necessary to know whether the borrower's relatives or other third parties have signed a joint repayment responsibility contract with the lending institution when applying for a loan, and whether there is a loan mortgage. If the relative third party has the right to know, it shall be repaid by the relative party or the third party after the death of the relative party; If the loan is mortgaged, the bank has the right to recover the collateral.

Extended data article 38? The lender shall, in accordance with the provisions of laws and regulations and the provisions of the loan contract, investigate the liability for breach of contract for the borrower's failure to provide true and complete information as promised in the contract and to use and pay the loan as agreed in the contract.

Article 40? The lender shall recover the loan principal and interest in accordance with the loan contract. For the loan that is not repaid according to the loan contract, the lender shall take measures to collect it, or stipulate the responsibility.

Article 42? Under any of the following circumstances, the China Banking Regulatory Commission may, in addition to taking regulatory measures in accordance with the provisions of Article 41 of these Measures, impose penalties on the lender in accordance with the provisions of Articles 46 and 48 of the Banking Supervision Law of the People's Republic of China:

(a) the issuance of unqualified personal loans;

(two) the loan contract signed does not conform to the provisions of these measures;

(three) in violation of the provisions of article seventh of these measures;

(4) Entrust all loan investigation matters to a third party;

(five) beyond or disguised beyond the loan authority to approve loans;

(6) instructing borrowers to obtain loans under fictitious circumstances;

(seven) the borrower's violation of the loan contract should be found but not found, or found but did not take effective measures;

(eight) other circumstances that seriously violate the prudent operating rules stipulated in these measures.

Reference: China Municipal Government Legal Information Network-Interim Measures for the Administration of Personal Loans