[Resolved]  LICHFL, Thanjavur — HIGH PROCESSING CHARGES/ pREPAYMENT CHARGES

I had applied for a housing loan worth 53.50 lacs, however the process at LIC home finance is very cumbersome . Moreover the terms and conditions are not clearly explained, as the staff and employees are themselves confused right upto to the position of Area and Regional Manager. I was assured by the
agent of a processing charge of not more than 5515 Rs, however when i receive a sanction letter on the 4th August the processing charge states that i need to pay an additional balance of 21, 750(which was never communicated). The concessional interest rate of 8.50%p.a is suddenly change in 20days-1months time from the time of speaking to the agents and receipt of the sanction letter on 4th Augustto 9.50%. And then on speaking back to the agents/employees it is changed to 8.50% for 3mths.Ridiculous! speaking to the Regional Manager is difficult as he is never available on phone. On visiting him personally and speaking to him we understand that the scheme for 8.50% was for 1 month only and withdrawn. He gave us an option of 8.9% for 3 years fixed, but apparently when speaking to the Area Manager that option is no more available.Confusion and chaos all the way. Delay as no one is entertained - Govt attitude towards work.It seems that the company is doing us a favour.On speaking bakc to the Regional Manager-he states that he was mistakened.As far as the processing charge is concerned he says that usually one has to pay 0.5%on loan amt, but it can be reduced to 0.3%, depending on the signatures of the Coporate office Manager.and recommendation of the Regonal manager.( This was never conveyed earlier), So from earlier being promised to pay 5, 515/ i am sudenly
being asked to pay minimum of Rs 15000.(0.3%) depending on the approval for reduction from the corporate office. After all the drama i again receive a letter from LIC to make a payment of 21750/- and sign there. When enquired with the employee they maintain it is the usual procedure and that till they get it reduced i need to sign as a formality. Bottomline line is that i am still waiting for the loan to get disbursed . Pre-payment charges of 2% which was supposed to be waived is still not done even inspite of communicating of the waiver.