[Resolved]  LIC HFL — LHPLR and floating rate of interest after 3 years not mentioned in the Sanction letter

Myself Rashmi Borkar have applied for home loan from LIC HFL in Oct 2009 for Rs 30,00,000. I have received sanction letter from LIC on 31st Oct 2009. File No 409035.
I wanted certain clarification on the letter hence I visited LIC HFL Thane (W) office on 7th November 2009. Howvere I was suprised to know that the asst manager whom I was interacting was not aware of any matter mentioned in the sanction letter. She asked me to write a letter and then they would revert.

I wrote a letter on 9th November and submitted to LIC HFL thane office. Following queries were mentioned in the letter

1. Clause 7 : Balance upfront fee of Rs 24000/- is mentioned in the letter.
LIC executive Mr Subhash informed us that processing fee is just Rs. 6000/- Later on he changed his stand that for you the processing fee will be 0.5%. However what is mentioned in the letter is 1% processing fee . i.e Rs 6000/- which is already paid and Rs 24000/- Balance to be paid.


2. Clause 8 and 9 : Commitment fees and secrity fees mentioned are not elaborated in the letter at all. I would like to know what this means.
Letter state Commitment fees : As applicable from time to time
Security fees : As may be decided by LICHFL at its sole discretion.

3. Fees on prepayment : 2% of the loan amount was mentioned in the letter.

LIC executive Mr Subhash informed us that there is no charges for prepayment . Later when I question him about the clause mentioned in the letter he told that there are no pre payment penalty for first six months after disbursement. Howevr no such thing is mentined in the sanction letter.
When I asked Ms Smita she said penalty is applicable as mentioned in the letter.

4. Rate of interest : I have applied for Fixed + floating scheme in which the fixed rate of interet was 8.9%. However Floating rate of interest applicable after 3 years was not mention. I would like to the the Floating rate of interest after 3 years with respect to LHPLR prevailing then.

i.e LHPLR minus ________ bps??

This is mentioned in all banks sanction letter but not in LIC HFL letter.

Till 21st November 21, 2009 I didn’t get any reply from LIC HFL. I tries to contact the Manager but his mobile no was never available.

Such kind of replies and ignorance on the company polices and terms from LIC HFL employees has baffled me. I am not able to understand how can a government organization function with such kind of employees . The sales executives mis led the customers and even the managers are not responsive enough to address customer queries in time.