It is not mandatory to buy a home insurance policy from a bank in order to get a loan. Contrary to the bank’s claims, there is no compulsion by the Reserve Bank of India (RBI) or the Insurance Regulatory and Development Authority (IRDA) for home loan applicants to buy any kind of insurance from the bank.
Simply so, does Bajaj Finance come under RBI?
Bajaj Holdings has been registered as a Non–Banking Financial Company (NBFC) under the Registration No. N–13.01952 dated 29 October 2009 with Reserve Bank of India (RBI). The company is classified as a Systemically Important Non–deposit-taking NBFC as per RBI Regulations.
Regarding this, is Bajaj Finance registered with RBI?
Bajaj Finserv is one of the top financial organisations in India which got registered as a non-banking financial company with the RBI on 29th October, 2007.
Is home loan protection insurance tax deductible?
You can avail of tax deductions under Section 80C of the Income Tax Act 1961 on the premium you are paying for a home loan protection cover.
Home loan insurance is not compulsory while availing home loan. However, as a means of securing your finances and assets, an insurance of this nature becomes important. As a buyer of insurance, you must remember to do your own research before availing this option.
Although it is essential to buy an insurance cover while taking a loan you are under no obligation to do so, not from any bank nor non-banking finance company. “It is not mandatory to purchase home loan protection plans.
The RBI rules for home loan insurance also stipulate that it is not compulsory for home loan customers to purchase insurance from their lenders.
If the borrower dies, the home loan gets transferred to either the co-applicant or to the legal heirs. The pending home loan dues would have to be cleared by the existing family members despite of the loss of income that the family suffers. If not, the bank has the right to sell the property and recover its money.
Loan protection insurance covers debt payments on certain covered loans if the insured loses their ability to pay due to a covered event. Such an event may be disability or illness, unemployment, or another hazard, depending on the particular policy.
After April 1, 2016 all floating rate loans of banks were linked to the Marginal Cost of Funds Based Lending Rate (MCLR), which was then changed to External Benchmark Rate (EBR) from October 1, 2019. … Therefore, by shifting interest rate regimes, your interest rate reduces by 0.5%.
CIBIL Score is a 3-digit numeric summary of your credit history, rating and report, and ranges from 300 to 900. The closer your score is to 900, the better your credit rating is.
In terms of coverage, a term plan is an umbrella cover that pays out death benefit which can be used for any purpose. Whereas a home loan insurance plan covers only the outstanding loan amount. Therefore, the sum assured will decrease over the policy term (as the loan gets repaid) until it becomes zero.
HDFC. Mortgage lender, Housing Development Finance Corp (HDFC), said that it will be offering home loans at 6.7% interest rate for those with credit scores above 800, as stated on thee lender’s website. The offer applies to all new loan applications irrespective of the loan amount or employment category.