SBI’s home loan customers sent from pillar to post

India’s largest lender offers attractive home loan schemes to generate demand, then loses interest when it comes to processing loan requests. One such complaint against SBI exposes the situation

Customers lining up for home loan offerings better size up the uphill task ahead of them. For, even though SBI is going all out to woo customers with attractive packages, it is making them run from pillar to post before releasing even a penny.
One particular complaint by Mr Kalyan Chakravarthy speaks volumes about the troubles home loan customers go through while dealing with bank officers. His case exposes the bureaucratic practices prevalent at the country’s largest bank, State Bank of India. Between the day that SBI’s representative came to collect all the relevant documents till the loan was actually sanctioned, the complainant has been made to run around in search of various documents (among other things) over and over again, and has been yelled at by the bank officials, for no fault of his.

After waiting for two weeks without any answer since providing the documents, when he met the manager for a preliminary enquiry, the Bank referred him to a separate branch where all the loans get processed. This is where his troubles began. Mr Chakravarthy states, “When I went there to know the status, they yelled at the top of their voice as to why we always keep on following up and they would call us once the application is processed. Again we waited for a week and finally I gave up and went to the branch again. Then ironically they asked me to get an estimate of the construction done by a prescribed engineer (Mr Chakravarthy had earlier submitted a valuation report from his engineer). I had to run to that engineer to get the valuation done again, for which he took four-five days and took a fee for the service.”

After he submitted the valuation report, again nothing moved and Mr Chakravarthy had to approach the branch again. This time they demanded legal advice, again from a prescribed legal advisor. He was also asked to get an encumbrance certificate and a duplicate will of the property. Even after doing all this, and after waiting for ten more days, SBI demanded the details of his previous employment as the Bank wanted a two-year working record. Even though he had already submitted relevant IT returns for three years, his arguments fell on deaf ears.

A week later, the complainant finally got a call from the manager asking him to sign the final documents, to seal the deal. Needless to say, his troubles didn’t end here. The manager asked him to pay stamp fees, which came to a staggering 0.5% of the loan amount! The reason for this absurd demand—the Bank was worried that in case he defaulted, it would have to file a case in the court, where the Bank needs to pay the stamp duty fee. As the complainant puts it, he was already being made out to be a defaulter!

Even after paying the required stamp duty, Mr Chakravarthy was referred to another manager, who made his own new list of requirements, including another encumbrance certificate. To complete all the formalities, when the complainant tried to open a new account, his request was flatly refused, as he had made the abominable mistake of coming on a Saturday! His alacrity won him a further round of abuses. After two days, his loan was finally sanctioned, but not without the customary new list of requirements. Even after going through all this mess, the complainant still remains unsure of getting the loan disbursed!

Mr Chakravarthy has highlighted the following issues:
They (the Bank) are asking the customers to get various documents which are very crucial (like legal advice and an encumbrance certificate). I guess this should be done by them independently as in today's world it’s very easy to get a fake certificate and the possibility of a fraud is not ruled out in these circumstances.
They (the Bank) are advertising 0% processing charges, but asking the customers to bear the expenses of getting a valuation certificate, legal advice, encumbrance certificate and also the stamp duty which in my case came to around 1.2% of the amount of loan. Is this not cheating, had I gone to any private bank wouldn’t I have just paid the 0.5% processing charges and got the loan without any hassles?
With such kind of practices, won’t SBI lose the customer base and business thereby, as many customers would opt to go for private banks and avoid PSUs as far as possible?

What is the reason for taking the stamp duty from all the customers in the beginning; is SBI of the impression that all will default on payments or do they want to increase the revenue for the government from these stamp duties?
This is the response they give to educated professionals—I’m not sure about the plight of a common man who is not aware of financial jargon and procedures, forget about illiterates.
 
That is the alarming situation currently playing out. After squirming about low credit off-take for the most part of this year, when customers are now slowly lining up for credit, SBI is getting cold feet in expediting the processing of loan requests. Moneylife tried to contact SBI for its comments, but didn’t get any reply.

Sucheta Dalal with Sanket Dhanorkar [email protected]
 

  • Like this story? Get our top stories by email.

    User

    COMMENTS

    Anita Singh

    2 months ago

    Hello Sir..
    I need 3 lakh urgently i can give you every documents please provide me details thanks..contact no 9870514137

    Komal Tapkire

    5 months ago

    I want loan 6 lakh

    Komal Tapkire

    5 months ago

    I want 10 lakh home

    Vijay Kumar

    6 months ago

    Sir iam in trouble Pls help of Rs 6 lakh ,ican promise &can give in writing that to paying every month of Rs 10000 ,I had taken a loan( not from bank)which I paying every month 35000,,where my salary is only18000 every month I have to additionally arrange the money ,but this month onwards Ian unable to pay,so..Pls help me & save my life fo for my loving small family.or any movement iam in stage to sucide my self . My num 9819336712

    phcl onine

    7 months ago

    do you need urgent loan? we now offer loan at 3% apply now.
    contact us now, [email protected] visit our website http://financ.website2.me

    punitha vedachalam

    8 months ago

    I want loan immediately emi I pay 16000 to capacity I need 700000

    Biswajit Khan

    9 months ago

    Immediate disbursal of money as loan. how its possible in my local bank ac. payment will be made as requirement of borrower.

    Biswajit Khan

    9 months ago

    Financial crisis bothering my work. how i can relief myself from that headache. i have no essential documents which borrower demands. please help me with suggestion.

    Kumar G Naik

    11 months ago

    Please give the loan

    Biswajit Khan

    1 year ago

    i have a rare urgency of money (100000) in between one or two weeks .
    it is my emergency need . i am a self employed person residing nearer to kolkata . can i get that & how ? know me fast .

    Waqas Ali

    1 year ago

    I need 5 lakh amount can you tell me apply procedure

    okhale peter

    1 year ago

    Hello Everyone .

    DO YOU NEED A LOAN ? APPLY NOW.

    We give out loans to individuals and cooperate bodies in the interest rate of 3% if you are interested in obtaining a loan,send us an email.

    kindly Contact us via Email: [email protected]

    We Expect your prompt responds, we are at your service.

    Thanks And God Bless.

    REPLY

    Asma Begum

    In Reply to okhale peter 9 months ago

    Respected sir i want loan for purchasing a property so plz contact me if possible

    Asma Begum

    In Reply to Asma Begum 9 months ago

    And please contact me if possible
    Mob. 8074990720

    Rahul yadav

    1 year ago

    WelcomE

    Najeeb Ali

    1 year ago


    LEGIT LOAN OFFER APPLY TODAY:
    Do you need a loan for any reason? Interested parties should contact STEPHEN WILLIAMS LOAN FIRM today, E-mail: [email protected]
    We offer private,Home Loan, commercial and personal loans with very minimal annual interest rate as low as 2% for 1 year to 20 years repayment duration period to all parts of the world. We give out loans from $5,000.00 to $10,000,000.00. Terms and conditions apply.
    Thank you for your patronage!
    Best Regards,

    Interested parties should contact the company via email for more information: Lender E-mail: [email protected]
    Name of creditor:
    STEPHEN WILLIAMS FINANCIAL LOAN FIRM
    Email: [email protected]
    Twiiter: @stephenswillsl1
    Instagram:stephen Williams Loan firm

    UTTARA DEB

    1 year ago

    I wan 2 start bussiness

    Banks cheer RBI move for domestic payment gateway

    Monopoly position enables international behemoths Visa and MasterCard to levy exorbitant costs on client banks; a domestic payment system would be considerably cheaper

    The country’s central bank, the Reserve Bank of India (RBI), is considering putting in place a domestic card payment system that would handle all debit or credit card transactions in the country. If implemented, the new system would compete against international card associations Visa and MasterCard, who have a virtual monopoly in card transactions worldwide. These two players have access to superior technology and employ stringent practices that make settlement of card transactions a breeze for banks worldwide.

    This position of strength enables the two giants to demand huge fees for their services from client banks. Banks thus have to pay a high cost for associating with Visa and MasterCard. So much so that there is no alternative for banks but to accept whatever charges these two players think fit to levy for their services.
    The list of service charges is quite exhaustive. Apart from transaction charges, they have a plethora of other fixed charges including annual service charges, monthly maintenance charges and quarterly charges. These are levied irrespective of whether the cardholder uses the card. The problem lies in the fact that banks cannot transfer all these charges to the customer. They have to bear the costs themselves. A senior banking official said, “These organisations are exploiting their monopoly position and technological expertise. Our current agreement requires us to unilaterally accept any future charges that may be introduced. They dictate their terms and conditions; banks don’t have any say in the matter.”

    Dhimant Roy Turakhia, assistant general manager, Bank of Maharashtra said, “This is a welcome move from the RBI. If the RBI is to introduce this system, it is going to be highly economical to the bank and also to the cardholders. The charges would come down to 10%-15% of current outgo. The profitability of public sector banks will also increase and the burden will also reduce to that extent. After all, we can only pass on limited expenses to our customers.”
    The most astounding fact is that Visa and MasterCard are not liable to pay a penny to the government in the form of taxes. Essentially, they are earning truckloads of revenues which are entirely tax-free. Banks are supposed to pay the service tax on behalf of Visa or MasterCard.

    The RBI has already established a National Financial Switch (NFS) which handles many domestic transactions for cash withdrawal. It has been operating since the last 18 months. For the same transactions, Visa charges more than 10 times what RBI asks from banks. RBI is also looking at establishing a PoS (point of sale) switch network for routing domestic card transactions. Currently, even domestic transactions are routed through a switch located outside the country. The Visa switch lies in the US as well as Singapore. However, for this new system to work, a 24-hour fund transfer mechanism will have to be put in place. The existing National Electronic Fund Transfer (NEFT) network operates during weekdays from 9 am to 5 pm and on Saturdays from 9 am to 12 noon. The RBI is also pursuing the suggestion to extend this network to work on a 24*7 basis.

    Sanket Dhanorkar [email protected]
     

  • Like this story? Get our top stories by email.

    User

    COMMENTS

    Komal Tapkire

    5 months ago

    Iwant 5 lakh immediate

    Ritu Rajput

    6 months ago

    Sir I wona lone up to 6lakes

    Fayyaz Mughal

    9 months ago

    please conact for us 03005846759

    Fayyaz Mughal

    9 months ago

    All guy toghater amount add fund 5 corore

    Pavan Patil

    9 months ago

    I need 3.5 lakh for clear my all pending dues....

    Fast Track Loan Firm

    11 months ago

    Are you in any financial difficulties and you need to have capital for that your business, we will give you the financial support as we give to individual and companies if you are seriously in need of financial help and you need support you can contact us now for more details. +918582930094

    Shaad Ali

    1 year ago

    Sir i need urgent money in 2 days and also i show my place where my business is setup i just only 1.5 lakhs needed

    Kamlesh

    1 year ago

    I need 200000 lakh rupees urgent lone plz help me my call 9325651041

    Bijay Meher

    1 year ago

    Sir I need 5 lakhs ruppes loan for repay of education loan m in problem sir bank people are creating lot of problem. So can u help me out
    My contact no is- 9114424927
    7470484843

    CASHHALL MORTGAGE

    2 years ago

    Welcome to CIT GROUP INC, we appreciate the good comments that has been going round the internet about our good works and we say thankful to all that have taken a loan from our firm. Now let’s get to what we do best again. Do you need an urgent loan? A loan to probably expand or start your own business? or you need a loan for education or to pay Do you need a loan? if yes Email: [email protected]

    REPLY

    Manjeet wadi

    In Reply to CASHHALL MORTGAGE 1 year ago

    I already started business but for the support of my business I want 6lakh urgently

    Bibha Baraik

    2 years ago

    Fake and time waste dena.... hota to sabko deta bahut pehle..........😕

    Thasli Moon

    2 years ago

    sir i am cashier in a shop .my monthly salary 13000 . i requred a 5 lacks loan for land purchase urgently. please send the details and forms .

    REPLY

    junior ojiehor

    In Reply to Thasli Moon 1 year ago



    Hello are you in need of any type of loan if yes contact

    ([email protected])

    surendra bhandari

    2 years ago

    I want home loan without salary slip

    Pradeep

    2 years ago

    sir, can i get 4.00 lacs in to repay my loans? if yes how is it posible ? pl. treat it serious and urgent . thanks Pradeep

    Rakesh Sharma

    2 years ago

    i want five lakhs rupees started business ciber in groegaon east so plz rpl me sir

    CIBIL to provide creditor’s contact updates to member banks

    CIBIL Location Plus will provide comprehensive information like customer identification details and contact addresses along with the reported dates and all the customer contact numbers to member banks.

    Credit Information Bureau (India) Ltd (CIBIL) has said that it has launched a new product, CIBIL Locate Plus, which would help its member banks to get updated contact details of their customers.
     
    "One of the challenges lenders face is keeping updated and accurate contact details on all of their customers. CIBIL Locate Plus leverages the bureau's vast and comprehensive information repository to provide its members with comprehensive contact information faster and more cost effectively,” said Arun Thukral, managing director, CIBIL.
     
    CIBIL's updated information will help credit grantors to reduce downstream data and labour costs by locating the right party earlier across the customer credit lifecycle, the release said.
     
    Finding contact earlier in the collection process, reducing returned mail and minimising outbound calls to disconnected or wrong numbers will positively impact the business productivity and maximize return on investment of the member banks, the release added.
    — Yogesh Sapkale [email protected]

  • Like this story? Get our top stories by email.

    User

    COMMENTS

    Bijay Meher

    1 year ago

    Sir I need 5 lakhs ruppes for repay of education loan sooo plz can u help me out its a request m in trouble
    My mob- 9114424927
    7470484843

    Harshit verma

    2 years ago

    I require home loan

    KRUSHNA PRASAD CHAND

    2 years ago

    Dear Sir, I would like to apply for a loan amount Rs.600000.00 What I have to do to get the loan amount sanctioned within 24 hrs. I have to purchase land at Ranchi (Jharkhand), India.

    We are listening!

    Solve the equation and enter in the Captcha field.
      Loading...
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email

    BUY NOW

    online financial advisory
    Pathbreakers
    Pathbreakers 1 & Pathbreakers 2 contain deep insights, unknown facts and captivating events in the life of 51 top achievers, in their own words.
    online financia advisory
    The Scam
    24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
    Moneylife Online Magazine
    Fiercely independent and pro-consumer information on personal finance
    financial magazines online
    Stockletters in 3 Flavours
    Outstanding research that beats mutual funds year after year
    financial magazines in india
    MAS: Complete Online Financial Advisory
    (Includes Moneylife Online Magazine)