| |
Insurance Loans |
The importance of insurance and loans in a rapidly developing economy like India cannot be undermined. Insurance and loan companies are playing a very significant role in developing countries. Especially in India, its performance and growth rate is splendid. Insurance loans in India are gradually gaining popularity even among the masses. During the past, we talked about Insurance as a means of indemnifying a loss suffered by the policyholder. But, today the situation is entirely opposite as insurance is talked about in terms of gains and profits. This is because it is taken as an asset that has a highest liquidity in the market like other financial instruments. |
|
|
|
|
| |
|
 |
Insurance India |
|
 |
|
|
| |
|
Loans in India |
|
 |
|
|
|
|
Finance India |
 |
|
|
|
Investment Funds |
 |
|
|
|
|
 |
Insurance Loans India |
 |
Insurance loan is practically a necessity for any business activity and enterprise. Insurance is used as a tool to hedge against the various future risks and uncertainties. Beyond the commercial world, insurance is vital to individuals. Insurance loans in India can be acquired from any finance companies according to the unique needs of an individual. Insurance policies will act as collateral for the loans. Insurance is basically a part of everyone's life today.
Recently some of the private banks like KOTAK, CHOLAMANDALAM, and HDFC are providing personal loans just by considering the prompt payment of insurance premiums. Even Long-term loans are provided by certain banks on the basis of insurance policies.
Insurance is an essential element in the operation of sophisticated national economies throughout the world today. So government and RBI is taking initiative in growing the insurance sectors by providing enormous insurance loans in India. Thus, the insurance loans scenario is getting really encouraging as the economy marches on, to gradually emerge as a powerful one.
"Insurance Loan" today is a very common word in our day to day life. It is obvious that in some stage of life we would need a large sum of money for some reason or other. There is no other way out for a common man to take loan to meet the necessity at that point. The concept of Insurance Loan came to existence to give a loan taker relief from the worries of his family when he is not there.
In case of a loan taken, the taker has to pay it back in installments through a certain period of time. If the taker can repay it fully it is well and good, but in case of any unfortunate eventuality where something happens to the taker the outstanding loan has to be paid back by the family. Suppose if a house is purchased through loans and something happens to the taker after repaying part of the loan, the family has the responsibility to repay it in full. On failing the house would be repossessed by the lender and the family would be rendered homeless.
To avoid such extremely painful situation there is a provision of Insurance loan, mainly home loans by different banks in India. This insurance allows the taker of the loan to be relaxed, as they support the family by repaying the loan to the lender in the case of any eventuality to the taker. Insuring a home loan helps a salaried person to stay away from the unavoidable worries to a great deal.
The amount of assured sum is adjusted with the outstanding liability of the home insurance loan that is the sum assured comes down as the outstanding money decreases with years. There is exception to this also. ICICI Bank home insurance loan keeps the assured sum of money constant.
Insurance in India is still a growing sector with huge potential. This sector in India has gone through a number of phases and changes, particularly in the recent years when the Govt. of India in 1999 opened up the this sector by allowing private companies to solicit insurance and also allowing FDI up to 26%. Ever since, the Indian insurance sector is considered as a booming market with every other global company in this sector wanting to have a lion's share. Currently, the largest life insurance company in India is still owned by the government.
|
|
|
|
Insurance Companies India |
|
|
|
|
