I got an education loan approved for my brother of particular amount (>5 Lacs) and since I am working, we wanted to pay back the loan from first month only. The representative who helped us with this loan told us that the same is being applied (as mode of repayment). He took blank cheques (no amount) from me (in favour of bank) saying that they would fill the amount once the loan ia approved and loan amount is decided.
When the amount finally got approved, they are saying that loan will be deducted from next year. Till that point, simple interest will be charged on the Principal amount. We were very sure that we didn’t want to go that route, hence we confirmed it before finally signing the agreement. Now I have got the DD in my hand and I am not sure where to go. With that representative saying (finally) that he explained us everything clearly, what options have we got?
Does similar thing happened with any one else? Is this common with every bank?
Any other similar incidents would help us take the next steps.
Thanks for help.