Went to my branch for an education loan(rate of interest 12.25%), to do a parttime MBA. The executive said it could be done in 10 days time, and took all the neccessary documents, after some days additional documents were asked for.
The I get a call asking me how would I repay the loan if I was studying. I mentioned that it was a parttime MBA and hence I would definetly be working. The executive then said there would then be no issue in disbursing the loan.
The deadline to pay my fees was soon approaching. A day before the deadline I called up the bank asking them about the status. The executive there said that it was almost through(however a slight delay) and that I could go ahead and issue the check and that the bank would credit the loan amount to my account! So I go to the college and make the payment.
The next day I get a call at 2.30pm(bank closing times are 3pm in mumbai) from the same executive saying that the loan has been rejected as ’’HSBC doesnt provide loans for parttime MBAs!! why dont you go for a personal loan (rate of interest 15%).
After having a long argument because of the compromising position the bank has put me in, I go to the bank the next day. The executive tells me then that the Bank will give me the education loan provided I maintain a fixed deposit of the similar amount with the branch!
Is this really a bank policy or simply an arm twisting technique utilized by the bank to make account holders block more money with them!
I really dont know, but what I know is that the moment I get back my post dated checks and papers I will stop banking with them. It is quite clear that there is no such policy of not giving loans for parttime MBAs. And that the bank just made me go ahead and pay the amount so that I would definetly be dependant on them. And then they could twist my arm!