Take care while submitting Loan Applications

The advent of the multinational banks, the various credit card operators and the improved standard of living has also given rise to a number of loan on phone schemes floated by these financial institutions. Loans are offered with no credibility check, verification or proper documentation. The prospective loan availer takes such offers from the banks, very lightly and casually.

The lethargy or carelessness goes to the extent, that the loans marketed by various franchisees of the banks who make offers off-the-cuff, which is tantalizing to the individual, sign on dotted lines based on the marketing personnel’s words.

One of my colleagues, who had taken a loan from a bank, had signed the loan application with all the details filled in personally by him. The offer by the franchise was a loan at 17%, which he had meticulously filled and then only signed. His loan was processed and the loan also disbursed. He also received a statement on the loan, and to his shock, he found that the rate of interest was changed to 19%. He lodged a complaint with the bank stating the rate at which he had agreed to avail the loan. The bank took its own sweet time to revert to his complaint. After repeated calls to the customer support, a flippant comment was made that he had signed the loan application for 19% only. The callous statement was due to the fact that generally people do not fill the loan details and go purely by the words of the franchisee and thought that my colleague would have also done the same. What the bankers do is to increase the interest rate without the knowledge of the loan availing person. And by providing them a blank signed application form, things are made easy for the bankers to manipulate.

My colleague has taken up the issue with the bank and has asked for a copy of the original application form, which he has signed. He has also warned them that if he does not get a copy of his signed loan application, he will be filing a case of forgery against the bank.

My request to all is to take the extra time to fill in all the details personally in the loan application form as committed by the marketing franchises and not to go by their words that they would take care of the filling up of the details. After signing the form, please take a copy of the same before handing over the loan application to the concerned franchisee.

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1 Response

  1. sajeevss says:

    This is a very good article , also please calculate what EMI is being charged against interest rate mentioned .If you ask any marketing person for an emi he can only tell you an amount and can rarely tell you how the amount is calculated based on per centage of interest

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