Show menu
Close
FAQ FAQ Categories Categories Sign in Sign in
Close
ADVERTISEMENT

[Resolved]  LICHFL, Thanjavur — Marketed wrong scheme

Hi,
When I approach LIC Housing Finance (LHF) for home loan after checking there ROI = 8.75%. When I clarified with LHF agent my queries like. what is there PLR and what the spread.
He told me LIC PLR =13.5 and spread = 4.75.
ROI = PLR-spread =8.75 %.
But when I recived sanction letter from LIC housing finance it had spread 2.75.
The 8.75 ROI was only for 3 months.

They took my Loan sanction fee = 6700/-.
There is no such condition written on LIC site or any of the documents.
I didn't expected renowned organization like LIC housing finance to cheat customer for the business.
I lost my money and had to run to other organization for loan which cause me frustration.
ADVERTISEMENT
Complaint marked as Resolved Aug 14, 2020
Complaint comments  15 CommentsShareTweet

Comments

Agree with you Aniket; they have 'Festive' schemes like 'Griha XXXX' etc using which they cheat people in a hurry to buy the house. I think we all customers that have been cheated by LICHFL should unite and pull them to consumer court. I think they are worse than HDFC / ICICI because the latter charge higher rates, but at least they are transparent to the customer; not cheaters like LICHFL

Regards
Aashish
Hi,
I hv also applied with LIC housing and paid pf of Rs10k, but I am yet to recieve the sanction letter. I was also offered 8.75% ie LHPLR-2.75% and they told me LHPLR was 11.5%.
I have existing loan with ICICIBank but was planning to shift due to lower rates from LIC.

Regards
B.Arun
Yes, very true. Even I never expected this from financial institutions like LIC Housing. I thought only the private players do all these legal cheatings, but I was wrong.

There is strategy behind the 8.75% ROI for the new loans. This 8.75% is not linked to any PLR and is fixed for first 3 month. After 3 months the then prevailing floating rate that is linked to PLR will be applicable for the loan.
The bad part is, none of the LIC staff tells this and this info is passed to the customer (that too in a difficult to understand text) through the Loan Offer Letter.
ADVERTISEMENT
I agree and I am thankfull to the people who gave the comments above.I saved my money.
I was taking this sanction at 8.75 which would be a mistake.

Thanks freinds you saved me from being cheated.
Even I was fooled by LIC Sales Agent.

At time of application, I was told that ROI is 8.75% which would not change untill the PLR is changed.

However, now in sanction letter, it is mentioned that 8.75% is applicable only for 3 months.
After 3 months, my ROI would be PLR - 2.5%.

The current PLR is 13%, which means after 3 months I need to pay interest @ 10.50

When I asked the sales guy he told he forgot to inform me that my ROI will be 10.50% after 3 months.

This is really ridiculious.

PLEASE BEWARE!!!


Regards
I too applied for a loan of 32 Lac and they were very prompt in giving me in principal approval. They promised me an interest rate of 9.5% on my loan amount but it was really very surprising to see them using formula for interest as 13 - 2.75, which comes to 10.25%. (.5 promised to me was a special rate for next one or two months.

They also told me that I can repay 10 percent loan per annum without any penalty and this thing was not at all mentioned in agreement. When inquired they told me that they can give me in writing but only on letter head of Branch officer, not in agreement.

Thirdly they told me that they will charge me only Rs 5550 for filing / processing but in agreement they mentioned that I have paid Rs 5000 and rest 11000 is balance. Again on inquiring they told me that it is mandatory to write like that, but Branch officer will give me in writing that I don’t have to pay this balance, but again on his letter head (not in agreement, where due was clearly mentioned).

I don’t know what sort of authority LIC has given to these Branch Officers that they can give things in writing on their letter heads. Agreements are legal and binding documents meant for this purpose. Come on LIC we are not fools. I have wasted my Rs 5500 and precious time behind such a fraud organization.
Can any one from LIC address my issue? They have really shambled their image.
Hi All,

I am also facing a similar experience. They had told me that the interest rate is based on their PLR and the rate is 8.75%. Now when the sanction letter came, the PLR is 13%, the approved rate is PLR-275% ie 10.25% and the special concession rate for 3 months is 8.75%. I feel that this is sheer cheating.

Please let me know how to tackle this. Also please let me know which Bank is the next option to apply for the loan.
I too applied for a loan of 27.5 Lac and they were very prompt in giving me in principal approval. They promised me an interest rate initially (only verbal communication) of 8.75 on my loan amount but it was really very surprising to see them using formula for interest as 13 - 3, which comes to 10%. (THEY SAID .75 promised to me ASa special rate for next THREE months.

They also told me that I can repay 10 percent loan per annum without any penalty and this thing was not at all mentioned in agreement. When inquired they told me that they can give me in writing but only on letter head of Branch officer, not in agreement.

Thirdly they told me that they will charge me only Rs 5550 for filing / processing but in agreement they mentioned that I have paid Rs 5000 and rest 11000 is balance. Again on inquiring they told me that it is mandatory to write like that, but Branch officer will give me in writing that I don’t have to pay this balance, but again on his letter head (not in agreement, where due was clearly mentioned).

I don’t know what sort of authority LIC has given to these Branch Officers that they can give things in writing on their letter heads. Agreements are legal and binding documents meant for this purpose. Come on LIC we are not fools. I have wasted my Rs 5500 and precious time behind such a fraud organization.
Can any one from LIC address my issue? They have really shambled their image.

any now i decided to go back to HDFC ... they changre bit higher but they follow fair practices.
I have shifted my home loan of Rs.25 lacs to Axis Bank at 9%.
For more than 30 lacs loan they are charging 9.5%

They are very transparent and the best part is there is no foreclosure fees in Axis Bank.
Moreover there is not much difference in rates between existing and new customers as against ICICI and HDFC.

You can talk to Rajesh - Axis Bank agent at [protected] for any further query.
This is exactly what happened with me as well. Intially they told me a processing fee of .5% and chagred 1%. I felt cheated and opted for another bank for my home loan. LIC sucks
hi i am viney i took housing loan from lic hfl and now i realize that what the agents says is wrong and they give me dodge . its very sad for a company like this.
Hi,
When I approach LIC Housing Finance (LHF) for transfer of home loan after checking there ROI = 8.75%. When I clarified with LHF agent my queries like. what is there PLR and what the spread.

He told me LIC PLR =13.5 and spread = 4.75.
ROI = PLR-spread =8.75 %.

I was told that it is fixed for six month and after that market rate will be used. but after 3 months they have hiked the rate to 9.75 that too without informing. The marketing person tells that he too was unaware that it is for 3 months only and as per market that rate should have gone down...this is complete cheat...I paid 65000 to ICICI for foreclosure and 12600 to LIC for loan processing and end up paying more interest rate...please help...let me know how we all can unite and go to consumer court...

my mobile is [protected]
Hello,

LICHFL is a complete cheat company and I appeal to new persons who intend to take loan, please don't go for this bank, as at the time of offering loan they promise low interest rates but after 3-4 months duration they suddenly increase the ROI without bothering to inform to the customers.

I have also taken loan from LICHFL and now repaying for it. Intially loan was offered for 8.75% but after 3 months the ROI was changed to 10.25% saying that it was a special offer for first three months only.
None of their repesentatives give such clear idea and keep mum. They also charge a processing fee of 1% which is on higher side as compared to other banks. Also when I requested them to change my scheme to 8.9% fixed-o-floaty scheme, they said that the scheme is only valid for new customers and not for existing ones which is highly irritating as how they can discriminate old and new customers. Thus they are bringing new schemes only to attract new customers (Bakras)and increase their market share, ridiculous.

It seems that in the fixed-o-floaty scheme also there must be some hidden cost or terms & conditions. So beaware while dealing with this fraud company.
LIC Housing Finance is a fraud company, especially Mr. Vinod Jaywant agent of Thane [protected], giving fake promises about disbursal and date of sanctioning, etc. These people never come for reference check of the applicant, property check, etc.

These people charged me Rs. 5500/- to get a sanction letter, that too of now use. As I asked this agent to provide me tenure of 20 years and they have offered me a sanction letter with 25 years of tenure. It was also informed to Mr. Vinod in advance that I want have sanction letter on and before 31st of July. After that these people have debited Rs.5500 from my account as a processing fees on 22nd of July and provided the sanction letter on 2nd of August that too after continuous follow up.

Mr. Vinod is very unprofessional person who just want to have customer but dont entertain them once we become his customer. He is reluctant answer phone calls and if answered then you will get another fake promise that he will give you a call in next 5-10 mins.

According to me Vinod and Aditya Bedi (area manager of LIC Housing Finance) both are fooling their customer and indirectly to LIC because if company have these sort of people then it's very difficult to surview.


So my request to all of you that dont get in to this trap.


Regards
Hi

I am planning to apply for home loan for 45 lac. LIC agent has promised me ROI of 11.15. And he told me the PLR as 14.75. After reading all the above reviews I am bit confused what should be option to apply home loan. I was doubtful about ROI so I have nt submitted my complete application to the agent still. Which should be option for home loan after LIC.

Post your Comment

    I want to submit Complaint Positive Review Neutral Comment
    code
    Life Insurance Corporation of India [LIC]
    Customer Care Service
    Customer satisfaction rating
    43%
    Complaints
    4988
    Pending
    0
    Resolved
    2151
    Life Insurance Corporation of India [LIC] Phone
    +91 22 2217 8600
    +91 75 5267 6254
    Life Insurance Corporation of India [LIC] Address
    LIC Central Office, 2nd Floor, Jeevan Bima Marg, Mumbai, Maharashtra, India - 400021
    View Full Information
    ADVERTISEMENT