Is taking life insurance mandatory for the disbursement process through HDFC Credila?

by Amresh_padhi

My education loan officer is telling me to take the life insurance along with the loan while saying it is mandatory as it is an unsecured loan and they may not start the disbursement process without it. I have paid the processing fees and don’t know what to do.

1 replies

Ananya_Ghai

Hi,

Thank you for reaching out. Loan Insurance is mandatory in case of any unfortunate event, the repayment burden does not fall on the co-applicant. During the disbursement, the loan insurance amount is deducted from the loan principal amount.

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