Companies & Sectors
Kingfisher offers three instalments of dues to staff before Diwali

While the Vijay Mallya-owned Kingfisher Airlines is offering up to three instalments of salary dues before Diwali, the striking employees insisted on a written assurance alleging that the management had earlier backtracked

Mumbai/New Delhi: A fresh bid was made on Monday by Kingfisher Airlines to resolve the 23-day-old impasse with its striking employees by offering up to three instalments of their salary dues before Diwali but the protesters insisted on a written assurance alleging that the management had earlier backtracked, reports PTI.
The offer was made to the employees’ representatives, who have been demanding payment of pending salary dues of at least four out of seven months before they resume work, held a meeting with management representatives at the Kingfisher House in Mumbai.
"There has been no written communication from the management in this regard. We don't know about any such offer," a pilot, who was part of the meeting, told PTI when asked whether the management had offered to clear two-three instalments of salary dues before Diwali in November.
"We cannot trust their words. They have gone back on their verbal promises earlier. We need a clear-cut written assurance," he said.
Airline sources, however, said such an offer was made to the employees during the discussions today.
The agitating staffs has already planned to hold demonstrations and other protest actions, especially during the upcoming Formula One motor race in which UB Group chief and Kingfisher promoter Vijay Mallya is involved.
The meeting came in the backdrop of the airline losing its license to fly with aviation regulator DGCA suspending it last Friday, capping three weeks of lockout in the beleaguered carrier.
Ahead of the talks, a company spokesperson had said, "it is our endeavour to restart operations at the earliest and we assure you we are working towards achieving this." 
"We have in any case always maintained that once the issues with the employees are resolved, we will first present our resumption plan to DGCA for review, before resuming operations," he had said.


United India defies CIC order; hiding inefficiencies leading to denial of cashless

United India Insurance was told by a CIC order to put data on policy issue date and transfer date to TPAs on its website. It has not done this for over two months. Does it need high-tech to give such basic information or was it is busy developing M-Power, the app which helps its get premium through mobile phones?

United India Insurance Company (UIIC) has not complied with the Central Information Commission (CIC) June 2012 order to start putting information on policy issue date and transfer date to TPAs (third party administrators) from 16 August 2012. As this order is not for retroactive data, there should not be any difficulty to conform. Yet, UIIC has scuttled the issue by saying that the information will be available only when they have implemented Comprehensive Online Real-Time Environment (CORE) software. Is UIIC deliberately not putting the obligated data as it will point to the ongoing bungling of the UIIC promised cashless feature?


As per the Right to Information (RTI) reply to Dr Anshu Agrawal, there can be a one-two month delay in giving policy renewal information by the branch office to the TPA. It means that the cashless feature is denied to customer during this period even after policy is renewed. When a customer pays premium for mediclaim policy, there is very less chance of a cheque bouncing. Why is customer penalised for inexplicable inefficiencies of UIIC? While UIIC has developed M-Power, a mobile application for ease in premium payment, why has it not taken any steps for really helping the customers?

Read – United India Insurance uses mobile tech for collecting premiums but in other ways it is in a pre-computer era! 

At the 28 August 2012 CIC hearing, UIIC Chief Public Information Officer (CPIO) told Information Commissioner following important points:


  1. It is the practise that the representative of the TPA visits the branch office on a weekly basis to obtain the information of the mediclaim policies (new and renewed) which are in-force.
  2. During the past one year, the company is in the process of putting in place CORE software, which is likely to take a few more months.
  3. During the interim, the CPIO will suggest to the senior management to operationalise a simple system whereby the bank would electronically transfer data to the insurance company as soon as the premium is credited to the account of the company and this information would further be electronically transmitted to the TPA thereby eliminating any unnecessary time lag in putting into force the mediclaim policy by the TPA with consequent benefits to the insured.


It’s bizarre that the TPA has to physically visit branch office once in a week to get updates on policy renewal or purchase. Even more astonishing is that a simple solution of electronic data transfers between bank to UIIC and then to TPA needed activists like Dr Agrawal to knock on CIC doors. It opened a UIIC Pandora’s Box.


Hapless policyholders end up with cashless denial just because UIIC is living in pre-computer age of manually getting cheque credited information from bank and making the TPA show up at the branch doors to get policy renewal information. Not to talk about the delays in TPAs putting this updated information on their computer systems. Till that happens, the policyholder is told that you are not our customer; you will not get cashless and we cannot even take hospitalisation intimation. In short, we may not pay your reimbursement claim as we did not take your hospitalisation intimation.


It will have to been seen when the self-revelation of UIIC is actually implemented. UIIC needs to empower the customer with quickly doing what they said at CIC hearing and not just offering M-Power mobile application for premium collection.


Read - CIC asks United India Insurance to disclose information that may help close a loophole – I

Read - United India CPIO defies CIC order, gives irrelevant data to RTI petitioner




5 years ago

It’s not UIIC, all other PSU General insurance cos sail in the same boat.Renewal data is not updated with TPAs for months even sometime till next renewal is due. For policies which are couple of years Old and regularly renewed in stipulated due dates, TPA’s asks policy holder for copies/proof of ALL previous year's details. Situation is worse when an insurance co. has changed its TPA.

End sufferer is POLICY HOLDER.I will appreciate if some more policy holders/agents can share above mentioned facts in order to revamp efficiency of these insurance companies and hold them accountable.

At times even IRDA and ombudsman favors TPA and insurance cos. for disputes generated due to above mentioned in-efficiency of insurance cos. and TPAs.

6 things you should look at before transferring your loan

Banks and finance companies are trying to gain business by offering lower interest rates. But you, as a borrower, need to look at other aspects as well, before moving your loan from one bank to another. Here are the six things you must consider

“You can transfer your high-cost home loan from any other bank to our bank and not only save on interest but also avail a higher loan amount” is the pitch from one of well-known banks. Most of us would definitely be tempted to go in for such a transfer. And why shouldn’t we? For the double benefit that is being provided, why would anybody not avail such an opportunity and that too when interest rates are so high? But stop and think. Is it all so simple? Should I actually go a step ahead to find the details? The answer is “yes, you should” and here is WHY and WHAT you should look at.

Technically called “takeover of loan”, transferring a loan means approaching a bank and asking it to issue a loan amount that is the outstanding amount with the current bank, repaying to the current bank and continuing the loan with the new bank. You will benefit from the lower interest rates or lower EMIs. And the bank? It gains new business. But, is the interest rate or a lesser EMI the only consideration? Not really. Here are six important factors that help you take the final decisions:

  • Calculate the total outflow

Although the new bank tries to attract you by reducing your monthly EMI and giving you a longer span to repay (increasing your tenure), you should be clear that such facilities increase the total amount you pay to the bank because the interest keeps on adding to the outstanding loan amount. If you are paying higher EMIs with your current bank, compare the total outgo for both banks and then take a decision. If you are not hard-pressed for cash, you should prefer staying with your bank, pay a larger EMI and finish off your loan as soon as possible to save all the money you would overpay, by opting for a longer tenure.

  • Study the processing fees and other allied charges

Take into consideration the processing fee, stamp duty, legal charges, valuation fee, technical charges and other allied charges that your new bank would charge and compare it with the benefit in terms of reduced interest rates. Is there a net benefit or a net loss?


For some banks, processing fee is a percentage of the total loan amount, while for others, it depends upon whether you are salaried or run a business. Still others have a fixed amount, uniform for all. If the bank calculates it on the basis of the outstanding amount, calculate it in rupee terms to find the cost. Also, your existing bank may jack up the costs of closure of accounts if it finds out that yours is a case of takeover. One of the complainants in an online complaint forum talks about how the bank officials refused his request to charge the interest rate on floating basis and insisted for recovery on a fixed rate of interest if the customer opted for takeover. They wanted the customer to pay at fixed interest rates, much higher than the floating rates applicable.

  • Collateral to outstanding ratio

If you have already repaid a huge chunk of your loan, do not offer the complete original collateral to your new bank. Why would you want to give a security which is double the amount of your loan outstanding? You would use it to take a separate loan instead, if the need arises. Offer your new bank a lesser amount of collateral. And if the bank still insists on the same, negotiate for lessening the interest rate further.

  • Charges and benefits of allied account requirements

When you take a loan, banks generally require you to open a savings account and route your money through that account. In case it does so, find out the charges applied and the facilities provided to you. For example, a Canara Bank education loan account does not accept EMIs through net banking. HDFC net banking allows you to make NEFT only 24-hours after you have submitted the request, the first time.


You should consider such provisions and your requirements before taking the final decision. Also, if your current bank is the one where you do all your banking, you become a premium customer for them; know a lot of their staff, are well-versed with their processes and may also be given services faster than others in queue. These softer aspects go a long way for ease of use and comfort banking, and should be thought about before foregoing them.

  • Terms and conditions governing loans

Before signing on the dotted line, you MUST read all terms and conditions of both banks. Some banks include buying insurance from specific company or depositing a certain amount in fixed deposits or opening a number of saving accounts for self as well as family, etc.  Read the “terms and conditions” part of the sanction letter and understand the pros and cons of such conditions.

  • Other attached frills on offer

Attracting customers by offering them frills with loans is a fad. Free credit card and personal accident insurance tops the list of offers. Before falling for these, analyse whether you really need them and ask for more information about terms and conditions governing them. A well-known friend was sold a ‘free’ credit card. He woke up the next year only to realise that the card was free only for one year. That is the extent of mis-selling being done.

Final take

Do not fall for an interest rate, or benefit, that is only marginally better. After all banks are into the business of lending. Why would one want to give you loans at a lower interest rate and lose profits when others in the market are earning a higher rate of interest? In your best interest, it is good to be suspicious and ask and consider all the issues mentioned above.



laxmikant gaidhane

1 month ago

Dear Sir,

Please help me in below situation if possible from your side.

I had taken personal loan of Rs.2 Lacs from HDFC Bank in April 2016 @ROI of 14% and EMI of 6699.

Now there is outstanding principal of Rs.1.44 Lacs which I would like to reduce my monthly EMI because I am in very bad financial condition.
I wish to know is this a good decision What shall I do now.

If I Need to continue with HDFC how I can get my EMI reduced.

Please revert AEAP my mail id is [email protected]



2 months ago

Thanks a lot for this article. I want you to know your article has just saved one another typical middle-class indian by falling a prey in to hands of so called banks. They have almost deceived me with lower interest rate at 13% in case of balance transfer my personal loan from ICICI to Kotak or CiTi banks, but after went through this article apparently i saved around a lakh by not transferring my personal loan for the lower interest sake. Thank you again !

Rajesh Singh

8 months ago

at the time of loan the said there is no foreclosure amount. even today their web site claim that they don't change any foreclosure penalty. but today when I asked for foreclosure statement, they are charging 4% on outstanding. Can I or any one do anything to Bajaj finserv,


Swapnil Kulkarni

In Reply to Rajesh Singh 7 months ago

Same case happened with me, is any legal action can be taken against Bajaj Finserv?


1 year ago

sir i have a dough that while i switching over my housing loan from hdfc limited to sbi bank. From sbi i got a check of rupees 12,000,00 arround (which was exactly the outstanding amount left with hdfc limited). actually i paid rupees 13,500 as emi every month to HDFC limited. But now i am paying 13000 rupees as emi per month(Usually bank in the period will debit interest component more when compared with principal component you know).
My dough is during first four year of repayment with hdfc bank , i have paid more interest component. i have some dough in this sir please help me


2 years ago

Dear Sir,
Please help me in below situation if possible from your side. I have taken personal loan 3.2L from ICICI Bank from august 2015 at that time ROI is 17.5%. Paid 6months EMI already. but now the HDFC Bank ROI is 12.5%. Is it beneficial to transfer the personal loan to HDFC Bank?. ICICI takes 2% service charge for preclosure.


2 years ago


Raghavendra Shetty

2 years ago

Dear Sir,

Now help me in below situation if possible from your side.

I had taken personal loan of Rs.3 Lacs from HDFC Bank in April 2014 @ROI of 14% and EMI of 8198.

Now there is outstanding principal of Rs.2 Lacs which I would like to transfer the same to kotak mahindra bank only to reduce my monthly EMI.

Kotak bank is ready provide the service with ROI of 13% and with tenure of 4 years with EMI of around 4K.

I wish to know is this a good decision to go ahead with balance transfer or should I continue with HDFC bank.

If I Need to continue with HDFC how I can get my EMI reduced.

My email id is [email protected]


2 years ago

great article


3 years ago

good report...
one it mandatory for one loan account to complete 3 years before opting takeover with another bank...??? pls let me know
[email protected]



In Reply to gaurav 2 years ago

it totally depends on your loan offering bank scheme, whether it is under locking period or unlocking.


3 years ago

Dear Sir,
Now help me in below situation if possible from your side.

I have taken loan from Indiabulls housing finance from August 2012 at that time ROI is 10.5% but now the same is 11.0% and when i ask my friends about change of ROI in their loan they said no.And i also search for them but most of the bank not increase their ROI.

So now i want to transfer my loan to BOB or HDFC home loan both interest are same i.e. 10.25%.

From Interest Rate(%)
2-Dec-13 11
28-Aug-13 10.9
14-Mar-13 10.4

Loan Type Rate Based
Sanctioned Loan Amount (in `) 14,71,757
Disbursed Amount (in `) 14,71,757
Installment (in `) 14,643.00
Current Interest Rate (%) 11
Loan Term (Total) in Months 274
Loan Term (Balance) in Months 254

After that indiabulls give me offer to reduce interest rate from 11.0% to 10.25%.

Charge is -5618
Outstanding amount-1437943
Current interest rate-11%
Tenure in month-253
Tenure in year-21.1

They give me offer
Current interest rate-10.25%
Tenure in month-215
Tenure in year-17.92

I save
Tenure in month-38
Tenure in year-3.17

So please guide me what i do?

Waiting for your favorable response.

Thanks in advance.

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