Is Life Insurance mandatory for Education Loan ? I had to pay Rs. 50k for Life insurance from the sanctioned amount of Rs. 30 lakhs loan.
Please Help! I am currently in the process of securing an education loan for XIMB through the PM Vidya Lakshmi portal via Canara Bank.
The bank is sanctioning a loan of ₹30 Lakhs, but they are insisting that a life insurance policy (with a lump sum premium of ₹50,000) is mandatory to process the loan.
Is it legally mandatory? Does RBI or Vidya Lakshmi guidelines specifically mandate insurance?
Has anyone successfully managed to get this waived or significantly reduced?
Would appreciate insights from current students or alumni who dealt with Canara Bank or similar high-value education loans. Thanks!
u/Beneficial_Weird1609 — 8 days ago