Important Facts To Be Considered For Home Loan Insurance             

When it comes to your dream home, housing finance is the best option to choose. Now, there is an add on facility of home loan insurance to repay the loan, which is not mandatory but is a good option to choose. It is not an insurance against home, but it is an insurance against housing finance. It is a backup for funds that can be used if any unfortunate event happened like borrower’s death or loss of regular income of borrower. With this insurance cover, your family never has to worry about the repayment of the loan. In simple words, if borrower becomes insolvent, then this insurance will offer some relief and work as additional funds to pay off the debt.

An eligibility criterion is also followed for the home loan insurance. In order to get eligible for this insurance, the applicant must have attained the minimum age of 18 years and the maximum age of entry is 50 years. Home loan insurance is available for both, individual as well as joint home loans. Some of the insurance related to housing finance may also require medical check-up as a part of proceedings. The insurance policy is taken in the name of the loan borrower. In case of eventuality, the benefits are paid to the applicant. In case of death of the insured, the amount is paid to the family members, to pay outstanding balance of home loan. The home loan insurance policy comes to an end when the complete amount of home loan is paid back by the borrower. There is exclusion as well, which means no benefits are paid in case of death by suicide. Benefits of insurance are also not paid within a year of the commencement of policy.

This insurance can be availed at easy terms and conditions. Owing to the flexibility of this insurance, loan repayment has become a lot easier.    

Documents Required For Applying The NRI Home Loan

The Non-Resident Indian (NRI) is an Indian citizen who is staying abroad but carries a valid Indian passport. Even an NRI can also apply for the home loans in India but there are some additional certificates which are required to submit-

Service Related Documents

  1.   Work contract. It should be in English and should be attested by the embassy/employer.
  2.   Copy of the Work permit.
  3.   Full details of employer.
  4.   Copy of the identity card issued in the present job.
  5.   Latest salary slip/certificate.
  6.   If applicable, Copy of the Continuous Discharge certificate (CDC).
  7.   Latest Foreign bank account statement.
  8.   Copy of the Visa stamped passport.

Property Related Documents

  •   Letter of allotment from the association of apartment owners/co-operative society.
  •   Receipt of such payments which are made for purchasing of dwelling units.
  •   Copy of Sale deed/agreement or any detailed cost estimation of the property which you want to purchase.

PIO (Person of Indian Origin) -PIO means a person who is the person of Indian origin but he is not the citizen of India. In the case of PIO following documents are required-

  •   Copy of PIO card On the unavailability of this card, photocopies of following documents are required-
  •   Current passport, in which ‘India’ is written as your birthplace.
  •   Indian passport/ birth certificate/ marriage certificate of Parents/grandparents.
  •   Compute your EMI for repaying through Axis bank Home Loan EMI Calculator which is provided by the Axis Bank on its website. Axis EMI Calculator is   one of the best EMI Calculator which help you to understand your needs.