When I was looking to a buy a flat in Pune, India, I researched many home loans schemes from HDFC, ICICI, SBI, Bank of India. Though the rates were good with many of these agencies at the time I was looking for a loan, someone suggested me to check with LIC. I did. The agent, who took my call, came down to office took all the details and called me back in a day with what I can get. He promised an interest rate of 8.75%, which was given in writing also. T
he processing was smooth, though they asked for so many documents, did legal verification etc. They agreed to waive some of the processing fees as well. When I got my first disbursement letter, I was surprised and shocked to see that instead of 8.75%, they had mentioned it would be charged at 9.75%. When I talked to the agent, he said, his job of initial processing was over and now this matter has to be discussed with Loan disbursement officer. When I talked to the lady, she said she will look into the matter. After couple of days, when I called, she said, there was a scheme going on at the time my loan application was received, wherein, anyone who applied during the period would be given 8.75% interest provided, the disbursement was made within 45 days of sanction. I was never made aware of this.
When I talked to her regarding this, she said nothing can be done, as the letter stated, the prevailing interest rate would apply. The disbursement of my loan was done on 46th day from the date of sanction. I am not sure whether it is my fault in not understanding all the hidden clauses or it was intentional on LIC’s part to lure the customers into such schemes and deliberately delay the processing by asking for more and more documents, making sure that the disbursement happened after the promotion period. For the consumers out there, be aware and get all the clarifications, if you are taking a loan from LIC. In my opinion, stay away from them. h