[Resolved]  LICHFL/Home Loan — Cheater

Re: Loan A/C No. 26604137

This is further to our telecon on the captioned subject at around 12.45 pm on 19th Oct 2010. I would like to bring to your kind notice that I had to assign my policies for taking loan. At the time of assigning the policies I enquired about the beneficiary of survival benefit payments which were due on my two policies in Oct 2010. I was assured by your agent (Mr. Dixit who is working on behalf of his wife at Gomtinagar branch, Lucknow) that the SB cheque will be issued in favor of LICHFL and LICHFL will give me the option to either repay the principal amount of loan or use the money at my will.

However, I was not given any option and the same was forcibly used for repaying the principal amount to which I was not even informed. I raised objections with the Branch Manager who confirmed that I had no such option. I told the Branch Manager about the discussion on this matter with the agent at the time of taking loan. He arrogantly replied that I don’t care about what happened between you and agent and it is none of his business. He is also not accepting the mistake of the agent due to which my future financial planning will suffer.

I enquired the Branch Manager about the process to release assigned policies to which he asked me to repay Rs. 50000 which was given to me against those policies. I would like to ask that if I am paying EMIs on the aforesaid amount then from where the need to repay Rs 50000 arises? Also if I repay the same then will my EMIs be reduced? What I feel is that these policies are meant to provide collateral securities in case of default so why the benefit arising from these policies were transferred to LICHFL even if there was no default on my part.

Moreover, if I were told these things at the time of taking loan then I could have taken lower amount than to assign my policies to LICHFL.

I would request you to please arrange to provide the survival benefit payments to me and take stringent action against the concerned official(s).

Best regards,

Akshay Kumar
Mob No. [protected]

However i am not satisfied with the reply given by Mr Rajput. I would like to reiterate that i was not given any information regarding benefit proceeds from assigned policies by Mr Rajput at the time of taking the loan. I came to know about this only after the problem regarding the beneficiary of SB payments surfaced, followed by subsequent enquiry from Mr Rajput over telephone.

Also in his reply nothing has been said about the agent who misguided me at the time of taking the loan.

I would like to further state that i required higher loan to which i agreed to assign my policies provided the future benefits arising from the policies will be given to me. I would never have assigned the policies if such things were communicated to me at the time of taking the loan. I was under impression that the benefits will be transferred to LICHFL only in case of default on my part which was the crux of the information given by your agent. My other points also remain unanswered regarding the reduction in EMIs.

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Aug 13, 2020
Complaint marked as Resolved 
Complaint comments 


The Regional Manager 31st March’08
LIC Housing Finance

Dear Sir,
Re: Loan A/C No. 26507774

In reference to the above subject, I would like to bring to your kind notice the following:

1. I had applied for home loan from LIC HFL, Lucknow and it is needless to mention that I was lured by one of your agents (Sanjay) to take the loan. The benefits explained to me at the time of application were manifold. Finally I was convinced to take the loan for tax saving purpose.

2. A loan of Rs.13 lacs was sanctioned and first disbursement was made on 02nd Aug’2007 for amount Rs. 9.35 lac only.

3. After 2nd disbursement of Rs. 1.14 lac I was refused further disbursement of remaining Rs. 2.51 Lac( i.e Rs. 13lac-Rs.9.35 lac- Rs.1.14 lac ) was not disbursed. On pursuing the matter I was disbursed for Rs. 1 lac only in the month of Sept. 2007. I feel sorry to state that reality didn’t turnout to what was promised by the agent & other officials at the time of applying for the loan. Also I found some discrepancies in terms & conditions explained to me.

4. I wrote a letter to your manager ( Mr.Tripathi) seeking clarifications, but he refused to accept it saying that we can sit and discuss over the issue (Letter attached). He solved few queries but most of them remain unsolved and ultimately I decided to apply for the transfer of the loan to other institution. I would like to mention here that it was a tough time for me as I was under immense pressure to pay Rs 5 lacs to the previous owner of the house. I had also discussed the rules and regulation of balance transfer with Mr. Tripathi.

5. I approached one of the financial institution and was assured a higher amount of home loan .I approached LIC HFL for the loan closure quotation. In the quotation the outstanding loan amount was shown as Rs. 1142514.36 (quotation attached).

6. However at the time of depositing the cheque for the same amount, the cheque was refused on the ground that the closing quotation is much higher than that mentioned in the quotation. The discrepancy in the amount could not be justified by the concerned staff & Mr. Ramnarain. They also forgot the ethics of customer service and behaved rudely.

7. Finally the loan was taken over by some other institution who sanctioned and disbursed the loan much higher than yours against the same property.

It’s disgusting to state that in this competitive scenario, your institution is behaving in an unprofessional and unethical manner. When other institutions could give a higher amount of loan on the same property why can’t yours.

I am putting up this matter now as I was under impression that this could have delayed the proceeding involved in taking over of the loan by some other institution.

I would request you to please look into the matter and solve the issue at the earliest. I am bearing the burnt of that mistake which I have never committed. I want refund of amount paid as EMI due to higher interest rate, processing fee due to non disbursement of sanctioned of loan amount and compensation of mental and financial harassment.


Akshay Kumar
The Branch Manager Date : 20/09/07
L I C Housing Finance Ltd.

Dear Sir,

Re : Queries regarding Loan A/C no.[protected], App. No.11893

First of all I would like to express thanks for sanctioning me the loan of Rs. 13,00,000. In this regard I have some queries which are as follows :

1. I was assured vide your letter dated 10/07/2007 & 03/08/2007 of getting a loan of Rs. 13,00,000 for the purchase of house. But the loan disbursed so far is only Rs.11,49,000. The details of disbursements are as follows:

Sr. No. Date of Disbursement Amount
1 02/08/2007 Rs.9,35,000
2 2nd week of Aug 2007 Rs.1,14,000
3 08/09/2007 Rs.1,00,000
Total Disbursement Rs.11,49,000

Please let me know the reason as to why the remaining amount i.e. Rs.1,51,000 has not
been disbursed to me as yet.

2. The EMI of Rs 13,627is being charged on the sanctioned amount of Rs 13,00,000 instead of disbursed amount of Rs.11,49,000. Please charge EMI on the disbursed amount basis and refund the difference.

3. It was also told that the interest charged on the loan would be 11% p.a.. However, the interest mentioned in the above mentioned letters is 11.25% p.a.. Please explain the discrepancy.

4. The processing fees was charged on Rs.13,00,000 instead of the disbursed amount of Rs. 11,49,000. The difference in the processing fee should be refunded to me.

5. Please let me know the details (i.e. in what respect) of the amount deducted on 18/08/07 vide cheque no.793603 of Rs.246.Please also furnish the details of the amount deducted in lieu of the loan till date.

Please resolve the above mentioned issues at the earliest and acknowledge me.


Akshay Kumar
Mob No [protected]

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