SBI Housing loan and Home loan insurance cover

POSTED BY kumar ON April 29, 2013 8:11 pm COMMENTS (8)


I have a HL from SBI. Although the entire process went seamlessly with one disbursement released as well, one thing left me pondering upon is the home loan insurance policy which was attached along with the loan without my consent and seems I have to pay my EMI including this amount. Now I am planning to bailout the property. I need your professional advice if the property loan (general) and life insurance cover of the insurer can also be transferred to new purchaser of my apartment.

Appreciate your advice. 

Thanks in advance.

8 replies on this article “SBI Housing loan and Home loan insurance cover”

  1. Dear Tapan, we are happy that you are getting info & knowledge from our posts & reply to you. Please keep asking.



  2. kumar says:

    Tons of thanks Ashal for your responses. You guys are amazing! trust me every response gives me lot of knowledge and more importantly peace of mind 🙂

    Hope to share more knowledge.


  3. Dear Tapan, the insurance prem. is 15K*5, to be paid in first 5Y of loan & after that no prem. 🙂



  4. kumar says:

    Thanks Ashal for your prompt response as usual 🙂

    I have another question for you.

    Along with the loan, SBI added 75 k as life insurance premium. They told me the amount is the premium for 5 years. Is this premium split in 5 installment for the HL tenure (20 years) or have to renew the premium after every 5 years?

    Thanks in advance,

  5. Dear Tapan, in case of extra payment made by you along with your regular EMI i.e. paying increased EMI, yes the principal amount should come down. Property insurance is good even for no loan case but Life insurance from these loan term covers is not available automatically if you close down your home loan.



  6. Tapan kumar says:

    Hi Ashal,

    Coming to my last published query to you.

    1) I went to the bank and checked with them. I am surprised that the loan outstanding amount has increased. Irrespective of the ECS mandate and my visit to them to highlight on the issue, they never debited from my personal account to the loan account.

    2) I see a debit of 24 K as premium for general insurance and debit of 15 k (of 75k) with interest incurring for the life insurance.

    3) Will the principal amount will come down if I want to pay more amount every month?

    Although I am planning to sell the property and you have already said I can surrender. Do you think these insurance policies are must to have even if I want to keep the property? Appreciate your views.

    Thanks in advance,

  7. Dear Tapan, yiu can surrender your policies & get back a part of your original amount paid as prem. for both policies. No insurance can not be transferred.



    1. Tapan kumar says:

      Thanks Ashal for your prompt response- much appreciated. I will visit RACPC tomorrow and speak to the authorities. Will update my experience soon.

      Great info.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.