Yes, according to RBI guidelines, property insurance is required for home loans. It is necessary to safeguard the property against any potential damage, loss, or destruction caused by natural or man-made disasters. Lenders typically require borrowers to purchase property insurance before sanctioning the loan, and failure to do so may result in the loan application being rejected. Property insurance premiums can be paid as a one-time payment or added to the loan amount and repaid through EMIs.
