Aug 26, 2014 05:25 PM
60352 Views
No matter how good the offer from LIC HFL, it may sound worse than Private sector banks. In India there is hardly any norms from RBI to prevent these institutions from openly cheating and robbing individuals of their hardly earned money however since LIC is state owned one would think that they will get a different treatment and that's where I went wrong.
Applied for a loan of 22.5L in march 2007 that got approved on 30 March with interest rate of 10%. Amount got disbursed in May 2007(floating loan) and interest rate was increased to 11.25% and emi was increased by around 2500 Rs. Initially I think for around 1 to 1.5 year I used to get an update about interest rate on my loan every quarter and it was adjusted as per prevailing market rate however that stopped and since they the rate has always been much higher. This week when I foreclosed the loan(after paying an EMI of 23715 Rs per month for 7 years and 3 months) the balance was 18.84L. They charged me some interest and document retrieval charges and total amount I had to pay was 18.94L.
I asked them that current rate being offered by LIC HFL is 10.15 then why such a high interest rate for an existing(loyal) customer. Got no answer. Asked them if they have any offer to pay some amount and get the interest rate reduced(as offered by HDFC and ICICI and other banks) but they do not have any such option. And worst thing their staff is not at all customer friendly. Typical govt. employee attitude. So for anyone opting for a loan from LIC HFL BE AWARE. If you are going for a fixed loan tenure then move to some other bank as soon as the fixed period is over.
