Home Loan Insurance a Boon or Bane?

A corporate employee who has taken a home loan of Rs. 50,00,000 by making his wife as co-applicant has not opted for home loan insurance in the view that he got enough coverage with different other banks and there is no need of any home loan linked insurance, but in a shocking incident after he passed away the other bank has rejected his claim with a reason of “ Non disclosure of medical facts” and the co-applicant has been made liable to make the loan payments who is a house wife.

What is Home Loan Insurance? 

A home loan insurance is a product that banks have introduced to make the co-applicants who sign the documents along with applicants free from home loan liability if any risk occurs to the applicants. It has two categories 

a)   Home Loan Linked Life Insurance: It is the product in which banks insures the life of applicant for the loan amount and for the entire tenure. Banks will provide with the option of making insurance payment on behalf of the customer to the Insurance company and the same will be added to the Home Loan amount which can be paid in easy EMI’s. The premium is a one time premium and the coverage will be given for the entire tenure to the complete loan amount.

If any risks occurs to the applicant in the repayment period then the remaining outstanding amount will be paid by the Insurance company to the Banker and the loan will be pre-closed and the original documents will be handed over to the co-applicant making him/her free from liability.

Do‘s:

·         Please fill the Insurance application form with your own hands

·         Please provide complete details which the insurance company request for.

·         Provide complete details about your habits which might need some medical attention which in turn make the premium goes up but have coverage.

·         Provide documents of the Nominee to the Insurance company

·         Signature proof of nominee is also be provided.

·         Have a photocopy of filled in insurance application form for future records

·         Get a brochure of the details of Insurance that you opted for.

Don’t’s:

·         Don’t try to mis-guide by filling wrong information.

·         Don’t sign blank insurance application form.

·         Don’t be in a month-end closure hurry before taking insurance have enough time for it

·         Don’t sign the documents with-out complete details of Insurance policy

b)   General Insurance: Banks do provide with an insurance product in which it will cover the property from natural calamities and fire accidents etc for which the bank will charge very less amount and which in turn will be funded by the bank and the amount is added back to home loan amount.

It is always suggested to the customers to make a choice of Home Loan Linked Life Insurance for the complete loan amount and for complete tenure as the policy demands for one time premium with complete tenure coverage and which has a great benefit of paying the premium in a very small EMI’s which is covered in the Home Loan EMI. So the Home Loan Linked insurance is definitely a Boon to customers who think of making co-applicants liability free by making this onetime payment.

For home loans in Chennai http://sites.google.com/site/chennaihousingloans/

HOME LOANS IN CHENNAI

http://sites.google.com/site/chennaihousingloans/

NRI Home Loans Basics and Process

NRI Housing Loans a product which best suits for Non Residents who are dreaming about having a own house in their home town. It is the product which offers all the NRI to purchase a New or Resale property or to built a house in the plot which already they own or to buy a plot and construct a house on it. This product is limited to the NRI people who are salaried only. There are very less banks which take self employed NRI into consideration for funding to their needs.

The process for having Housing loans being a NRI is very simple. The banks will have a General power of Attorney which should be Notarized in the country where the customer is residing and send it across to the bank for submission. The lists of documents are same as salaried residents for the loan process. A NRI person need to submit his/her ID, Age, Residential, Income, Tax deduction, banking proofs to the banks along with the credit report all which are duly signed by the applicants. The credit report is same as CIBIL statement here in India. NRI need to assign a blood relative as his GPA holder to process the loan application and to sign on behalf of him on all his loan documents. A GPA holder can be a father, mother, brother, sister, father in law, mother in law and the final option is a Brother in Law. One can’t keep his friends as his GPA holder for his loan processing. The GPA holder also needs to submit his ID, Age and residential Proofs and the property documents with Agreement of Sale and link documents.

The banks will verify employment of the NRI through email mailed to the HR of the company. There will be no further verifications of NRI and the bank will verify the GPA holders address and details here in India. The eligibility will be calculated taking his/her gross/net Income into consideration along with age and the product which the customers choose. If any discrepancy found in the credit statement of the GPA holder will affect the process so it is suggestible to the customers to be aware of ones credit history before making him/her as GPA.

Banks will verify the legality of the property and evaluate according to the market value. The funding will be done up to a maximum of 80% of the property cost (Technical Value), Agreement value or the sanctioned amount whichever is less.

The below points to be noted in the home loan process for NRI’s especially

• GPA holder is mandatory for processing a home loan application for a NRI.

• Maximum age of GPA should not cross 75 Years

• Maximum age considered for NRI is 58 Years

• All the repayments are given at a maximum period of 15 years

• Funding will be released ones documents get registered on the applicant’s name.

• For semi-finished apartments and houses the funding will be released depending on the construction stage of the property.

• Funding will be done for properties within the geo limits of the bank.

• GPA notary is mandatory in the residing countries which in turn to be validate din INDIA.

• TAX Benefits are not applicable for NRI’s on any type of Loans.