Credit Card debt after death in India: Who pays and what gets written off?

If a credit card user dies, for unsecured credit cards, the bank will try to recover the dues from the deceased's estate. For secured credit cards, the bank will liquidate the collateral.

Crucial credit card rules

What happens after a credit card holder dies with outstanding dues? How does the bank recover the amount? Are family members liable? Many are unaware of these crucial credit card rules.

Outstanding dues

With unsecured credit cards, only the cardholder is liable for outstanding dues. If they die, the bank may try to recover from their estate. As a last resort, the bank might write off the debt. No family member can be forced to pay.

Secured credit cards

Secured credit cards require collateral like an FD. If the holder dies or defaults, the bank can recover dues from the FD. If the debt exceeds the collateral's value, the bank may try to recover the remaining amount from the deceased's estate.

Personal loans

Personal loans are unsecured. Like credit cards, only the borrower is responsible for repayment. The same process applies as unsecured credit cards. The bank cannot hold any family member liable for the debt.