Joint Home Loan: If one borrower passes away after taking a joint home loan, who will pay the EMI?

Nowadays, buying a dream home has become quite expensive. Consequently, people are opting for joint home loans. A key advantage of a joint loan is that the combined income of both partners allows for a higher loan amount, and the monthly EMI burden is shared. Joint loans are typically available to partners with a specific relationship—such as husband and wife, father and son, father and daughter, or son and mother—provided both partners have an income.

A common question regarding joint home loans is what happens to the loan if one partner passes away during the repayment period. Does the bank waive the EMI, or is the surviving partner required to continue paying it?

Who is responsible for the EMI in a joint loan?
Both partners share the responsibility for repaying the joint home loan (i.e., paying the EMI). If one partner passes away, the obligation to pay the remaining EMIs does not cease; the surviving partner remains liable for the payments. Since the house serves as collateral for the loan, the bank can recover the outstanding amount from the property in accordance with regulations if the loan is not repaid. Even after the death of one partner, the other must continue paying the loan; otherwise, the property could be seized.

Home loan insurance is crucial
Having insurance for a home loan is extremely important. If a borrower passes away for any reason, the burden of the loan falls upon the family. In such a scenario, the insurance payout can be used to settle the outstanding loan amount. If the deceased partner's share of the loan is covered by insurance, the insurance company pays off that portion of the outstanding balance.

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