I want lesser Home Loan than approved – What should I do in this situation ?

POSTED BY psmaan ON August 5, 2014 7:52 pm COMMENTS (2)

I have availed a home loan of Rs 20 Lac from PNB and withdrawn Rs 15 Lac. now I do not want to withdraw remaining Rs 5 Lac from loan a/c and write to branch manager to set my EMI on Rs 15 Lac only , he said you take remaining amount in your account once and repay the same amount in loan a/c after 2-3 days . Is this is the right way for this type of situation.

Secondly the bank made a insurance cover of Rs 13000 on my home loan amount from natural disasters without my knowledge but the bank manager says its a mandatory cover as per RBI guidelines.  Please guide me as I do not require it.

2 replies on this article “I want lesser Home Loan than approved – What should I do in this situation ?”

  1. Raja says:

    There is no need to take disbursement for the remaining 5L. Tell the bank clearly that you do not want it and ask them to set the EMI accordingly.

    Property insurance is mandatory, but bank should have given you the option to take it from the insurance company with which they have tie up or any other insurance company of your choice. In anycase, its a good practice to have property insurance. So dont bother too much about it.

  2. Credexpert says:

    Dear Sir,

    If you do not want to withdraw the remaining amount you can tell the respective bank that you do not wish to withdraw the same. They will then calculate the EMIs based on the total amount disbursed.

    Insuring the property is mandatory according to the RBI rules. However, it is not compulsory to get the insurance from the same bank from where you get the loan or from an insurance company the bank has a tie up with. You may insure the property from any other insurance company of your choice.

    Regards,
    Credexpert

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