Manju (45) of Perumbavoor in Ernakulam hanged herself yesterday inside her home after sending her children to school, police said.
Bank authorities had pasted a notice on the house and nearby areas stating their house would be auctioned if the loan amount of Rs 1.34 lakh, which includes dues, were not cleared by June 25.
Manju was upset after receiving the notice, relatives said.
The auction was to have been held yesterday at 11 AM but was not done as her husband, a driver in the Kerala State Road Transport Corporation deposited dues of Rs 35,000 in the bank, which his wife was unaware of.
When he returned home by afternoon, he found his wife dead.
Relatives complained the notice was issued even before the lapse of the loan period.