Joint home loan co-borrower death: survivor liable for EMI, not full ownership

A Supreme Court advocate has explained that the surviving borrower of a joint home loan remains liable to repay the entire outstanding loan after a co-borrower dies, but does not automatically get full ownership of the property. Advocate Amitraj Kaushal said the loan agreement typically makes both signatories 'joint and several' obligors, meaning the bank can recover the full amount from the survivor regardless of who paid more during the lifetime of the co-borrower.

Ownership follows the title deed, not the loan repayment, Kaushal noted. The deceased co-borrower's share in the property passes to their legal heirs or nominee under succession law or a will, not to the surviving borrower merely because they continue paying EMIs. This can create a situation where the survivor pays off the entire loan while the legal heirs of the deceased own a part of the house.

Kaushal advised joint borrowers to get a written co-ownership agreement, make a will specifying inheritance, and consider loan-protection insurance to cover the outstanding amount in case of death. If the surviving borrower defaults, the bank can recover dues from the deceased borrower's estate as well.