Insurance policy on education loan
4 months ago
My bank is selling insurance policy on education loan and they said it is mandatory as per internal guidelines of bank so i want to know whether it is mandatory by rbi or not?
A.Dear client,
If you want to inquire about the mandate by RBI regarding buying insurance with an education loan then there is no mandate or law by RBI or any regulatory body for buying an insurance policy with an education loan. However, it is advised to buy the insurance with an education loan for safety and precautionary measures.
Thank You
If you want to inquire about the mandate by RBI regarding buying insurance with an education loan then there is no mandate or law by RBI or any regulatory body for buying an insurance policy with an education loan. However, it is advised to buy the insurance with an education loan for safety and precautionary measures.
Thank You
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A.Dear Client,
It is not mandatory to buy insurance coverage while taking an education loan. For loans taken from govt banks, it is not necessary for you to get insurance. However, for some private banks or organizations, you may have to get insurance as a condition to take out an education loan. Neither the law nor regulatory bodies such as RBI or IRDAI deem it necessary to purchase insurance on education loans provided by banks or finance companies. However, it is highly recommended because it provides a safety net in case of unforeseen circumstances, such as death, disability, or loss of income of the borrower.
It is not mandatory to buy insurance coverage while taking an education loan. For loans taken from govt banks, it is not necessary for you to get insurance. However, for some private banks or organizations, you may have to get insurance as a condition to take out an education loan. Neither the law nor regulatory bodies such as RBI or IRDAI deem it necessary to purchase insurance on education loans provided by banks or finance companies. However, it is highly recommended because it provides a safety net in case of unforeseen circumstances, such as death, disability, or loss of income of the borrower.
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