Apr 29, 2017 09:28 PM
13475 Views
I took a loan from LICHFL Hyderabad in 2013 for an under construction apartment. Even though the apartment was hardly 50-60% completed, they did some valuation and disbursed 80% of the amount to builder. Processing of the loan however was quick, not sure how much verification they did on the property. ROI was average at 10.25%.
However the biggest catch is they try to allure customer with low interest rate, but that is only for 1st 2 years. As soon as the fixed period is over, they increase the rate like anything. For me in Sep, 2015 the rate abruptly changed to 11.75% though other banks kept at 9.8% during that time. No communication, I realized immediately since I used to keep a tab online given that I have already observed similar feedback. When I approached the branch manager, he was helpful but took some 1140/- for resetting the interest back to 10.5%. Now think, why should the interest be increased in first place without any real reason and if you don't observe you will continuing pay high rate and loan tenure will go up automatically.
Sometimes in 2016, I decided to switch to SBI who was offering 9.4%. Now another trick here. For Documents collection as per the MITC signed with LIC during loan sanction, the charge mentioned was just 1000. However they took 2500 for returning the original documents. When I inquired citing the same, the response from the executive in Madhapur office was just blunt stating that the terms and conditions can change without notice. How can some termns mentioned in MITC change without signature from both parties? I didn't want to argue as I was shifting the loan and these things will just delay the proceedings.
Overall very average experience, and we should prefer public banks.