Although the home loan is an important aspect for restructuring the financial element of the economy, protecting the viability of the home loan is an important criterion since it serves a basic purpose for the interested borrower. Thus schemes must be implemented for the perfect execution of the home loan options.
Home Loans as we have learned from several discussions are one of the most important aspects of Financial Restructuring in the country thereby bringing about adequate utilization of resources and ensuring full efficiency. Home Loans thus preceded all other loans in terms of importance and significance as it helps in fulfilling the most basic need of the interested borrower- purchasing a home by utilizing the money which has been taken by the borrower from the banking institutions as the loan amount. However, the importance of home loan allows the consumers with the perfect opportunity to protect their loan options from all kinds of disruption to maintain their uniformity and functioning mechanism in times of financial distress. Thus protection can be offered to the home loans in the following manner?
What is a Home Loan Protection Plan or Scheme?
The existing home loan which is availed by the banking institution of a country can be protected through a protection liquidity scheme which is known as the Home Loan Processing Fee Protection Plan. Through this plan, the borrower can insure his home loan by submitting the claim for the loan to any insurance company that is responsible for providing insurance facilities to the borrower. The working of the insurance facility functions just like any other forms of life insurance and medical insurance plan. In such a case a premium amount is calculated based on the percentage of home loans, payable monthly or yearly basis.
How does the Home Loan Protection Plan work?
The Home Loan Protection Plan works according to the following set of guidelines. A step by step process is necessary for implementing the loan. Firstly when you are availing of the loan facility you would have to submit a claim for the insurance of the loan facility availed by you. Upon the acceptance of the claim submitted to a recognized insurance company or agency, your loan would be granted efficacy and you would be able to recover the insurable amount in case of emergencies.
Supposedly you go through a terrible accident and you are deceased. Although the home loan has been taken as you being the guaranteed signatory authority, you are supposed to fill in regulations for appointing a family member as your nominee, one who will be looking after the repayment of the loan if you go through some unfortunate situation. Home Loan processing fee is levied during the insurance process. Thus upon your death, one of your family members will take the insurance document and submit the claim for granting of insurance to the insurance company. The company which has offered an insurance protection scheme will be then liable to pay off the remaining liability ie- the amount of the loan that has been insured by the institutional facility. Lastly, it is of terminal importance that proper documents are submitted. If there is any discrepancy in the documentation process, then the claim would be completely discarded and no importance would be given to the claim.
Home Loan Processing Fee is reduced to a minimum to ensure proper regulation of credit facilities. Thus the proper functioning of the Home Loan Protection Scheme by Karur Vysya Bank Home Loan ensures the popularity of the home loan thereby providing the borrowers with the option of being encouraged to opt for more home loans.
In conclusion, it is of extreme importance to understand the validity of the Home Loan Protection Scheme in ensuring that the home loans availed can help in regulating the flow of financial credit in the economy. Home Loans through their active purpose-fulfillment objective ensures that the loans fulfill multipurpose essentialities. You should always be aware and careful about protecting your home loan option.
No comments:
Post a Comment