What happens to personal loan if a person dies before repaying it?

If a borrower dies before repaying a personal loan, lenders first check for a co-applicant or guarantor, a Times Now report said. A co-applicant is equally liable, while a guarantor must repay if borrower passes away. If none exist, banks may recover dues from the borrower’s estate. Legal heirs aren’t automatically liable unless they signed the loan, the report said.