I have borrowed Rs. 26 lakhs home loan from SBI for 20 years tenure at 10.50% per annum rate of interest. Now the bankers are forcing me to purchase sbp surakasha and to bear its premium. I am not interested in taking this insurance cover at least the one suggested by bank. Is it mandatory to purchase insurance policy from them?
Purchasing an insurance cover for loan is a good idea and in fact borrowers must buy property insurance. However, bank can not force you to purchase a specific policy. You have a right to purchase it from any insurer.