Beware the Home Loan Trap: CS Ujjawal Pahwa Unveils Hidden Insurance Burdens
Beware the Home Loan Trap: CS Ujjawal Pahwa Unveils Hidden Insurance Burdens
Photo Credit: CS Ujjawal Pahwa Instagram
- CS Ujjawal Pahwa warns about banks bundling home loan insurance
- Some banks add insurance premiums to loans without disclosure
- Borrowers can challenge this practice with banking authorities' assistanc
Renowned financial expert CS Ujjawal Pahwa has sounded a warning regarding a somewhat obscure practice in the realm of home loans. It has come to light that some banks and lenders, driven by their quest to safeguard their financial interests, incorporate home loan insurance into your mortgage package without clear disclosure.
Insights About Home Loan Insurance:
The crux of this issue lies in the fact that these institutions slyly add the insurance premium to your total sanctioned loan amount, placing an additional burden on the borrower's shoulders. Although home loan insurance can offer benefits, it is crucial to recognize that it remains entirely optional, not an obligatory component when securing a home loan. Legally, borrowers are under no obligation to purchase this insurance when securing a loan.
In light of this, should borrowers find themselves unknowingly subjected to this undisclosed inclusion, Pahwa advises taking action. Options include elevating the matter to the bank's senior management or seeking assistance from the Banking Ombudsman for a just resolution. The overarching message is clear: staying vigilant and informed in financial dealings is essential to avoid falling prey to concealed financial maneuvers.
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