Have you e(i)nsured that your family can stay in the same property?
Pune, 30th January 2023: Most people who buy their first residential property opt for a housing loan. Let’s say Vivek buys a flat for Rs one crore. He pays Rs 40 lakhs from his source. He raises a 60 lakhs housing loan from a financial institution for 15 years.
Now, the flat is mortgaged to that Financial Institution. “Plan A” is Vivek completes the loan term successfully and repays the principal and interest in 15 years or earlier. After repayment, the financial institution will cancel the mortgage and transfer the property to Vivek
What if Vivek, unfortunately, dies after, say, three years? The outstanding loan is, say, Rs 56 lakhs.