Private Mortgage Insurance - PMI

Private Mortgage Insurance - PMI

A policy provided by private mortgage insurers to protect lenders against loss if a borrower defaults. Most lenders require PMI for loans with loan-to-value (LTV) percentages in excess of 80%. This allows the borrower to make a smaller down payment of as low as 3%, instead of about 20%, and usually requires an initial premium payment and possibly an additional monthly fee depending on the loan's structure. Some of the well-known mortgage-financing companies offering private mortgage insurance products in India are as follows - LIC Housing Finance HDFC ICICI Home Finance SBI Housing Finance UCO Bank Allahabad Bank United Bank of India Kotak Mahindra Bank Citi Bank Standard Bank HSBC