Is insurance mandatory for sanction of a home loan in HDFC? Any leads will be a great help…
Many home loan lenders want home loan borrowers to opt for home loan protection plans largely due to rising NPAs. To opt for a home loan insurance or not is your choice and there is no compulsion to take loan insurance for a home loan.
There are typically 2 kinds of insurance that a bank might ask for along with a Home Loan. One is Home Insurance and another is job loss cover or loan insurance. Both of them are not compulsory. A Home Insurance is a type of property insurance that is used to protect an individual’s house against damages to the house or to possessions in the house. Job loss cover or loan insurance is where the EMI of the loan will be covered in case you lose your job or are unable to pay your EMI due to several reasons. This is a good cover to take, more so when you opt for a joint Home Loan. In case of a joint Home Loan, if one is incapacitated, the other borrower needn’t bear the burden of the loan.