Why is having a home Loan Insurance Policy in India Important

The Corona outbreak changed the way of life as a whole and changed the way we look at life. Even the people who have bank loans, if something bad happens to us now, who will repay the loan amount behind us? Such anxiety began to plague. Take out a home loan.

If a person owes a home loan and is the sole breadwinner in the family, it is important for the person to be in good health. Death of a debtor can put a strain on a family. If so, what exactly is a home loan?

In the extreme case, the bank has the option to sell the property and recover the loan. But the bank uses this option as a last resort. Prior to that, the bank examines every possible option and sells the property

The bank does not receive the full amount until the full amount. This means that the bank must first understand that the bank has a legal right to the property until the loan is fully repaid. It is also a fact that the bank has no legal recourse

If a person has taken a home loan and dies, then the legal responsibility for repaying the loan rests with the said heir of the respective borrower. Apart from this, the bank also gives opportunity to the guarantor. If the bank gets a guarantor, then the bank solves the issue.

If the family does not have the capacity to repay the loan due to the death of the borrower, the family can make such request to the bank. The bank tries its best to re-evaluate the loan considering the financial condition of the family. Extend the term by reducing the loan installment.

If the loan is not repaid by the legally mentioned heir, the bank also offers the opportunity to appoint another heir. The financial capacity of another person to repay the loan is checked only by the bank.

The borrower died and the family could not repay the loan. So the bank gives a fixed time. If no repayment is made from the borrowing family within 90 days. The bank declares NPA as a non-performing asset.

If you have taken out home loan insurance from a bank while taking out a home loan, then the family does not suffer much after the death of the borrower. Therefore, home loan insurance policy is very popular. If the home loan policy is taken out, then at least the family after the death of the borrower