Answered by
 Sucheta Dalal
I took a housing loan of Rs. 25 lakh from SBI in 2013 to purchase a flat in Chennai. The flat was purchased jointly in the name of my father and me. I as a co owner (Second Applicant) applied for a loan from SBI and the same was sanctioned. The loan amount was paid to the builder directly by the bank. I have been regularly repaying my EMI without a single default since then. Over and above my EMI, I have also prepaid a sum of Rs.10 lakh.
In 2019, that is six years after I took the loan, the bank started informing me over phone that I need to pay some personal life insurance amount to SBI Life which is clubbed with my loan account. I never opted nor filled up any form for personal life insurance. In effect they have cross sold the insurance product of their sister concern SBI Life without my knowledge or concurrence. After several telephonic conversations, they called me to their office for discussion. They demanded some big amount towards personal insurance of SBI Life. I demanded from them the proof for my opting for life insurance from SBI Life. They could not produce the same. They asked for some time to get hold of the papers. Now on January 29, 2020 they have sent me a notice u/s 13(2) of SARFRAESI Act 2002 stating that my loan account has become irregular and the same has been classified as NPA with effect from 31.03. 2019. They have also called upon me to discharge my liability to them in full within 60 days. As per their notice my total liability is as under:
Housing Loan: Rs. 943313
Suraksha ( Life Insurance): Rs. 186443
Total : Rs. 1129756

Can the bank forcibly cross sell the insurance product of their sister concern to their customers when they take housing loan?
Can the bank share the personal details of their customer with their sister concern without the knowledge and consent of the customer?
Am I obliged to pay the insurance amount taken on my behalf without my consent and knowledge?
Kindly advise and help me.

 Consumer complaints
This is a serious issue of high-handedness and unfair behaviour. I would suggest that you work overtime to escalate it at multiple levels. This is because you do not have time on your hands. I... Read More
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Sucheta Dalal Trustee - Moneylife Foundation

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