Dec 05, 2024 05:46 PM
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Housing Loan/Residential Plot+ Construction Loan Application No. HOU/CHEP/1124/1327015
Loan Application # 0547347
We submitted our Housing Loan application on November 15th, which was pre-approved on the 19th after multiple rounds of detailed discussions with the sales team. They confirmed that Mortgage Insurance(Life Insurance for applicants) was not mandatory; only property insurance, which covers fire, theft, and loss of belongings, would be required post-construction.
We then requested to process the loan sanction as soon as possible to complete our land registration by December 5th. Your team assured us that everything would be done on time. However, no progress was made until the evening of the 4th.
On the evening of the 4th, we received a call from your team informing us that they would add ₹2.25 Lakhs to our loan amount for either Mortgage Insurance or property insurance which covers fire, theft, and loss of belongings for our empty land. When we declined this as we already had sufficient insurance coverage, your team stated that they would not proceed without additional insurance.
We reluctantly agreed to pay the ₹2.25 Lakhs+ interest as a premium, as we were behind schedule for the land registration on the 5th.
Crucially,
When we inquired around 5 PM about the readiness of the loan agreement documents, your team requested that we visit the Guindy office and sign on empty blank papers as the documents were not yet prepared. Your team member stated that they would prepare the documents later and paste them on the relevant pages.
We believe that the practice of signing blank papers for any loan is illegal and against Indian law.
We ultimately declined to sign the blank papers and requested your team to cancel our loan application.
