SBI Home Loan Insurance

POSTED BY Sourav Ghosh ON February 27, 2013 1:11 am COMMENTS (4)

I applied for a Home Loan of 65L under SBI Max Gain scheme for 20 years in Bangalore and opted for Insurance also.My age is 38.

I just got an sms that my loan is approved/sanctioned and  I see that my loan amount is 67.5 L , the loan manager said it is due to Insurance.

I think what they mentioned is a single premium along with interest.

Can I remove the insurance since I have not signed the papers yet.

4 replies on this article “SBI Home Loan Insurance”

  1. Dear Saurav, the banking officials are telling a lie, when you are not using the 2.5L Rs. amount out of your total loan of 67.5L Rs. which is meant for life insurance single prem., the loan value can not be remain same. the loan ‘ll be adjusted accordingly & you ‘ll get adjusted EMI. In case banking officials meant to say that loan ‘ll be considered as 65L Rs. only but the EMI ‘ll be calculated on the basis of 67.5L Rs., it’s actualy in your favor as you ‘ll be paying higher amount towards principal from the day one & thus paying your loan early.

    thanks

    Ashal

  2. Credexpert says:

    Dear Mr. Ghosh,

    Yes, if you do not wish to opt for the insurance inform the bank about the same. However we assume that the bank may insist on the insurance. One possible option is that you opt out of the insurance by paying 2.5 lacs (i.e. 67.5 – 65 ) from your own pocket.

    Regards,
    Credexpert

    1. Sourav Ghosh says:

      HI Cred Expert,

      This 2.5 L to whom I should pay and for what when I am opting out of the insurance.
      Bank is telling me you can opt out but your emi would be on 67.5 L only and not 65L.

  3. Dear Sourav, if you are already having adequate Term cover, no need to accept so before signing on the dotted lines, you may refuse to accept this added burden of insurance.

    Thanks

    Ashal

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