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While taking a housing loan, I was informed by the SBI executive that I had to opt for property insurance. Since I was not sure, I asked a friend whether is property insurance mandatory for home loan as per SBI? He told me that it was not and also told me about the following.
Is Home Insurance Mandatory For SBI Home Loan?
My friend told me that it's not mandatory to take property insurance. Banks generally do this to safeguard their interests in case you are not able to pay the loan.
He also said that banks could issue an internal guideline making it mandatory to buy Home Insurance for home loans. Even if they do that, you can still choose an insurance provider of your choice. My friend also told me that I could file a complaint to the Banking Ombudsman if the bank keeps on enforcing.
When the bank asked me to take up the insurance, I told them that I was aware of the fact that it’s not compulsory to choose one. But they still insisted on it. So, I asked them to give me in writing that home insurance is mandatory for home loan. After this, they did not push me any further and I was able to get the loan.
That’s all about it. I hope your queries about is property insurance mandatory for home loan as per SBI have been resolved.
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If you are thinking whether SBI home loan insurance mandatory or not, I’d like to say that SBI Life Insurance is not an obligatory requirement of all house loans. However, due to the significance of life insurance, it should never be disregarded. People who are thinking about getting a home mortgage, for instance, might purchase a life insurance policy to safeguard their payments.
Now that you know whether property insurance is mandatory for SBI home loan or not, I’d like to share a few key features of SBI simple home insurance policy, that will help you to make a decision of getting the same;
Offers defence against catastrophic losses like those resulting from natural disasters
Offers defence against legal actions brought about by injuries sustained on your property.
Offers defence against the theft and break-in of the insured's possessions
safeguards the lending institution's collateral
Offers a complete solution to all threats under one umbrella.
This coverage is available to Indian homeowners who are the owners or occupiers of a flat, apartment, or independent building. Tenants can also buy this coverage, but as they do not own the building, they can insure its contents.
I believe this will help you to understand whether SBI home loan insurance mandatory or not.
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The rising cost of real estate has led to a huge increase in the popularity of home loan insurance. You can safeguard future of your property just like the future of your loved ones because life's happenings are unexpected. We must understand property insurance for home loan SBI in order to understand how it helps us.
Get a home loan at very effective interest rates through NoBroker here.Is SBI home loan property insurance mandatory?
No, property insurance is not mandatory for SBI home loans. But it is advisable to get insurance for your property to safeguard yourself from unprecedented events.
The cost of home loans is currently at a multi-year low. Currently, the 6.4% industry rate set by the public sector Union Bank is the lowest. Last month the State Bank of India (SBI), issued a holiday offer of 6.7% for home loans of any size. This will help you understand whether SBI property insurance mandatory or not.
How does home loan insurance work?
The insurer pays back the remaining loan amount to the creditor or the bank in the terrible event of the borrower's death.
Tax benefits are available under Section 80C of the Income Tax Act.
The borrower has the option to add extra riders or coverages to their house insurance policy. Major illness and disability riders ensure that the outstanding loan balance is covered not just in the tragic event of the borrower's death, but also while they are unwell.
This is all you need to know about property insurance for home loan SBI.
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Is property insurance for home loan mandatory?
Taking a home loan is a long-term commitment. You need to pay monthly EMI on time along with the interest for at least 25 to 30 years. If you fail to pay your home loan, the property you mortgaged will be seized. At times the family can need money for unavoidable circumstances. Therefore, the bank asks you to take home loan insurance. Home loan insurance can help you with paying your EMI. But is SBI property insurance for home loan? I will let you know in detail.
Get home loans with minimmal paperwork at NoBroker from your preferred bank.Is property insurance mandatory in SBI home loan?
I read what Ms Jayati and Mr Rohan G have pointed out. And what they have mentioned is totally correct. When I visited SBI bank for the home loan they also offered me insurance but I declined. I pointed out that SBI has itself mentioned on their website that it is not mandatory to avail of home loan insurance with the home loan.
In conclusion, I would like to point out that banks offer home loan insurance as they don't want to risk themselves by offering home loans to borrowers. So, to secure themselves, offer a home loan. I would also like to point out that home loan insurance is costly. So, I will let you be the judge on whether or not you should opt for home loan insurance. I hope you find the answer on property insurance for home loan informative.
Read more:
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- To safeguard their own self-interest in case we are unable to repay the loan approved by the bank.
- They may also have some sort of collaboration with an insurance company. So, if they successfully convince their customers to buy insurance from that insurance company, it helps them earn huge commissions.
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Is property insurance mandatory for SBI home loan?
Prateek
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3 Year
2021-09-28T17:10:48+00:00 2021-09-29T17:57:29+00:00Comment
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