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LIC HFL Complaint
I applied for floating rate home loan in LICHFL on 14th June,09. I was asked to pay processing fee of .5% loan amount out of which I was asked to pay Rs 6113 + service tax of 10.36% initially. Then within 10days, my loan got sanctioned. But before disbursement, LIC launched fix o float 8.9% 3 years scheme, so we decided to switch to fixed rate scheme and now LICHFL is asking us to fill a new application and pay the same amount again.
We insisted that the loan has not yet been disbursed so why we need to pay the fee. But LICHFL is not hearing to us.
I am frustrated about this. LICHFL should consider the customer sentiments too.
Could you please suggest on this.
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Your loan account will be governed by the terms you have agreed with LICHFL. If your loan has got sanctioned means the formalities are complete and you have accepted the terms. Now if you want to switch over to another scheme then you will have to look at the Agreement terms for specific clause, if any, dealing with this. Since your loan has been sanctioned after going through various stages/internal procedures on the basis of your application for loan at floating rate, any change in the approved scheme would require further passing through the same internal procedures(this may be mandatory for audit purposes from LICHFL point of view). That may the reason you are being asked to fill in a new application.
As regard to charges, we feel it is within LICHFL rights to charge processing fee even while switching schemes. For e.g ICICI Bank is charging 1.75% on the Principal Outstanding amount. Axis Bank charges minimum Rs.5000/- or 1% of the outstanding loan amount, whichever is higher. I would say you may find LCIHFL charges comparitively lower than others.
What you can do is to make a request to LICHFL to reduce the processing fee to half.
(This is only a general view. For accurate advise you may consult a legal expert)