My sister waswas planning to purchase a house in Palghar and for that she & her husband had applied for housing loan to HDFC Bank.
But to their surprise, the bank was insisting that they should have Fixed Deposit (it can be at any other bank too) of 15% to 20% of the total housing loan. They are going to avail the loan of Rs. 15 lacs, hence, they should have the FD of Rs. 3 lacs min, which was not possible for them. The bank is asking for the provision of this amount without which they won’t sanction the loan.
Is it really mandatory to open FD for availing Housing Loan?