I have applied for a home loan of Rs.15.00 lacs for purchase of a flat. All necessary documents submitted. However, the MPST manager states that coverage under SBILIFE Rinn Raksha is mandatory, otherwise the proposal will not be considered. After careful perusal of costs and benefits, if I want to opt out of SBILIFE coverage, then my decision should be given some regard. Even the Bank’s internal circular states that insurance of the property with General Insurance Companies is a must, but SBI Life products may be marketed.

If any branch insists for SBILIFE coverage as a pre condition, it is against the regulations of IRDA. But the Bank’s policy seems to be luring a caged monkey with a piece of cake and make the monkey dance to its tunes. So much so, the Bank is prepared to lose its prime business of lending, in the name of patronising SBILIFE. Without paying heed to these key issues, the Bank is undertaking a study into the reasons for slowdown of bank credit to home loans. The defect lies not in the product but the marketing men. Try to mend their attitude!

Regards
balajiskumar91@gmail