What happens to a joint home loan if one of the borrowers dies?

If a joint home-loan borrower dies during the loan tenure, lenders check whether borrower had purchased home-loan insurance, NDTV Profit reported. If covered, the insurer usually settles the outstanding loan amount, subject to the policy’s terms. If the co-borrower cannot repay, the lender may approach the guarantor, legal heirs or other family members to take over repayments, the report added.