I applied for a Home Loan (for 15 lakhs, 10 years, property value 38 lakhs) from SBI recently. After the appointment and documentation at bank, today I noticed that an amount of Rs. 9150 is deducted from my SBI Savings account and the transaction says towards “General Insurance”. My understanding is that this is insurance for natural calamities, fire etc.
When I called them they told me that it is mandatory. I made it clear that I wasn’t told of the amount beforehand and I didn’t like the way it was debited from my account without informing me of the amount first. However, things I want to know are
1. Whether this amount is a one time amount or I have to pay this amount every year?
2. If I pre-close the Home Loan in 5 years time will I get back any part of this Rs. 9150? If yes, what’s the procedure?