I already have an existing home loan with HDFC which is successfully running for the last 3 years. Since a manager in ICICI promised to offer top-up loan which was attractive, I submitted an application for home loan. I gave all the required documents and I was charged Rs 6900 as the processing fee. After few days, they gave me a sanction letter and asked for legal documents.
The bank’s lawyer asked for a court order as my seller was a trust and not an individual. I submitted the proof for the trust deed wherein was mentioned the powers of the trust to buy and sell properties. The trust is a renowned University in India and holds crores of other properties. The trust has sold many such properties without a court order as it is really not required. I also explained the clauses in the law and told the bank that the court order is required only where the trust deed does not mention anything about buying/selling powers of the bank. I went on to explain why the court gave a ruling in a case so that any trust does not misuse properties by selling it inappropriately.
The bank’s lawyer was adamant and my representation to the Corporate head office also did not yield any result. The bank was adamant on telling me that they need a court order. Finally without giving anything in writing that they need the court order, they returned back my documents and sent a mail stating that the issue is closed from their end.
The processing fee was not returned and the bank swallowed the amount. The bank does not have experienced officers such as those found in Nationalized banks. They are inexperienced and book oriented and do not know where to take practical decisions.
Questions to be answered by the bank:
What is the difficulty in processing a loan which was already processed by a legal department of another national level institution which is a leader in the home loan market?
Why is their lawyer so adamant in asking for a court order which is not at all required in this case?
Why did not the bank return my processing fee?
What explanation will the bank offer if the trust sues it?
Can anyone from the bank dare to answer these questions and defend the action by the bank?
So dear customers, please do not approach ICICI for home loans. They are unfit to process home loans.
Regards,
Samraj,