I had applied a home loan of Rs. 30 Lakhs from SBI for purchase of flat allotted by Government Authority. The home loan alongwith loan insurance has been sanctioned by SBI. As on date, disbursement of the loan is pending. Please advise me
(i) Whether I can withdraw this insurance policy at this moment?
(ii) What are the changes/ requirements SBI may demand for withdrawal of the said policy?
Further, If I continue with this insurance policy since this flat is allotted by Government Authority and the payment for the said flat is to be made in seven quarterly instalments. In the event of any mishappening in the starting of tha loan , whether the insurance policy works and insurance company pay all the instalments or rest of the instalments will be paid by guarantor.
As thare is a guarantor in the policy, in the event of any mishappening or due nto unavoidable reasons applicant could not pay his instalments what steps SBI may take. Whether SBI will recover the balance instalments from the guarantor or SBI will approach to the insurance company.
What are the role and Liabilities of the guarantor in respect of a home loan?
