LIC Housing Finance is a name one should mark agaist as agencies one should never approach for home loans.
Entire set of inputs are on my personal experience, from recent past and continuing. None of the same is a biased or prejudiced raving of a frustrated user. I allow entire experience to unfold and when realised that LIC HFL is actually a deep pit, I thought of writing this’Warning’ message for fellow seekers
Merits: -Currently None
Perceived rate of interest slightly lower than private banks and non-banking financial institutions in country.
But after June 23rd, 2011- this difference has also been diluted at 25 basis point increase in both Floating(min 10.15% for upto 30 Lac Loan to 11:25% for loans 75 Lacs and above) .
Fixed at RoI of 10.75%(upto 30 lac loan for 5 yrs) upto 12% & More for a Loan of 75 lacs & above
Demerits:
i) Loan applied on in March 2011 got sanctioned in 2nd week of June -a gross delay of approx 3 months.Trust me, there was no issue at all in my eligibility which was confirmed by LIC. It was all owing to their process change.
ii) Payment to builder due in April 2011 was eventually disbursed by LIC HFL in June 2011
iii) The amount was readjusted by LIC on its own without informing me and expected to meet shortfall of Rs 50-80 K on my own. A sudden burden due to insensitivity of LIC
iv) LIC cites that all its issues are due to-
a) Countrywide New CRM software which has loads of bug issues and
b)also due to reshuffling of staff across branches
c) Even all processing fee and norms are now bypassing norms & rules and only subjected to what this CRM Application enables.For example: If your company is CIBIL rated Group A, ideally, LIC processing fee should be INR 5500 around March-April 2011 But since new CRM doesn’t approve, LIC will charge you Rs 11000+Service Tax(standard processing fee). As last info received, this has even further increased.
v) Even DSA agents of LIC are quite stiff and un-supportive, once the processing fee and engagement has been closed.
vi) Despite assurances of post-1st disbursal engagements being faster, the scenario is same every time. Average Disbursement Time is 3 weeks.
vii) LIC is totally indifferent to Borrower’s Penalty owed to builder due to all late payments which is a recurring phenomena with LIC
viii) My particular issue is experienced with Gurgaon-II Branch(Sector 31, Gurgaon), Delhi/NCR
ix) Problem is there is no mechanism in LIC for escalating issues/customer grievance redressal.
x) LIC plays much truant and authoritative. The Gurgaon-II Branch Manager or team is never available on provided Contact Numbers. If you happen to visit, you’ll always find Manager & 3-4 key people mostly on leave or unavailable.
I’m a trapped borrower who is deeply harassed and financially depleted(Penalty to Builder has been standing at INR 33000 as on date) and I see no sign of Improvement with LIC.
Request you to pay a little extra, but go to Banks/NBFCs which understand the Customer /Loan Applicants requirements and concerns. What you intend to save over ROI will be leaked in the Penalties you will end up paying.
LIC HFL.Wake up Please!