Lenders often misguide the housing loan borrowers and talk them into purchasing housing loan insurance products. Several finance organizations say these products are mandatory and force buyers to pay an additional amount for the premium. But is insurance mandatory for home loan? Read below to know:
Is Property Insurance Mandatory for Home Loan as per RBI
Let me tell you that it isn’t mandatory to purchase a housing insurance policy from a bank to get a home loan. There isn’t any compulsion by the RBI or the IRDA (Insurance Regulatory and Development Authority) for housing loan applicants to purchase insurance from banks.
Officially, your bank can’t force you to buy property insurance from them. Moreover, using the name of IRDA or RBI is misinformation.
However, the banks don’t hesitate to force you to purchase property insurance from them because they may want to safeguard their self-interest in case you could not repay the home loan. Additionally, they may insist you purchase housing insurance from them because they usually have a tie-up with insurance companies. So, when they convince you to purchase their property insurance from their collaborating insurer, they earn commissions.
I hope you like my answer on “is property insurance mandatory for home loan in India”
Get a Housing Loan without having to Buy Insurance via NoBroker, check this out,
[widget_homeLoan_checkEligibility_form]
Read more:
What is processing fee for home loan?
Which bank is best for loan against property?
Your Feedback Matters! How was this Answer?
Thanks ,We got your reaction
Shifting, House?
✔
Lowest Price Quote✔
Safe Relocation✔
Professional Labour✔
Timely Pickup & Delivery
Intercity Shifting-Upto 25% Off
Check Prices
Intracity Shifting-Upto 25% Off
Check Prices
City Tempo-Upto 50% Off
Book Now
Authors Of The Question
Is property insurance mandatory for home loan?
Nikhil
1831 Views
1 Answers
3 Year
2021-09-28T17:02:49+00:00 2021-09-28T18:35:58+00:00Comment
Share