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POSTED BY ON December 19, 2012 9:03 pm COMMENTS (4)
Hi MAnish and team ,
I need and inquired for Home loan of 21 Lakh from SBI .They told me about 1 time premium payment of General Home insurance and RINN Raksh life insurance.I want a help for following questions :
1) How much amout i needto pay for general Home insurance for above mentioned home loan and 20 years tenure?
2) Should i go for Rinn raksh Life insurance? they are telling me the inusrance premium as Re 50000 of 5years?
3) If itake Loan for 25 years then my EMI amount comes down.However RInn raksha policy pemium which adds in EMI shoots up by minor amount.In case of no prepayment penalty is it good to take loan for longer tenure and reduce have reduced EMI??
Thanks for your cooperation.
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Dear Jhonty,
Opt for General Home Insurance or the RINN Raksh Life Insurance only if you genuinely need one and also as mentioned by you these will certainly increase your EMI amount.
Are they insisting that you have to go for an insurance policy? If you do not want to and your cash flows do not permit the same, you should consider other lenders who do not insist on insurance as a precondition. If you have the cash flow, taking longer tenure makes little sense as the total interest you pay will be much higher.
Regards,
Credexpert
Buddy! Are you asking about the home loan insurance or home insurance? Both are different. As you are taking about home loan here so i guess you are talking about the one time payment of your home loan insurance (Home Insurance is something that you do after possession of your house). They charge this home loan insurance (in my case they were asking Rs 75,000 one time payment) so that incase of your death or so during the home loan payment they can recover the rest of the loan fron the insurer.
The home loan insurance can simply avoided by showing assets such as gold, cash in hand, property, LIC insurances. The best is term insurance which has very high cover and once you show them the document they dont ask for one time payment of the home loan insurance.
Yes you have to pay VAT also. In my case it is:
VAT @14% of 70 % Construction Value
Service tax @ 12.36% of 30% of Construction Value
Thankyou Manish for your reply….
I got your point and let me go ahead with your advise
One more querry related to tax.
I think we need to apy service tax of 12.36% on 33% cost of property.However, we also need to pay VAT as what i think VAT is not applicable for immovable property. Please guide me.
I ‘m in urgent need to know this as no where i get right answer of this question and before builder gives me shocks i want to be clear.
You can go for the general insurance, thats good for you also , but just deny for the life insurance thing . Its just not mandatory , they do it to meet their target and tell you that its mandatory . There are few things you can do to avoid taking it
1. Tell them you know its not mandatory and IRDA has clearly said cross selling is not legal
2. Tell them you will get this info from IRDA using RTI and show them
3. just tell them you dont need home loan , they will come back to you in 1-2 days , surely !
Manish