kishore kumar (others) 24 June 2013

Home loan

Hi,

I recently applied for home loan and all proceedures were cleared and they approved home loan. So, we started construction of house and we completed upto plinth with pillars. When we went ask for sanctioned amount (%), they are stating that you need to show the "higher amount" of construction that is upto roof. But this was not mentioned anywhere and the manager also left the branch and a new manager has arrived.

He told us to apply again and provide all documents again.

Here we are frustated and we have withdrawn loan from that company and they are not returning the processing money back (Rs.15000), wasted 3 months and what about the constructed area.

Please advise

regards,

Kishore

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2 Replies

R.R. KRISHNAA (Legal Manager) 24 June 2013

You have said that they are not returning the processing fee. Have you sought for refund by any letter?

You may seek refund of processing fee if it is refundable. The processing fees in loan matters are generally not refundable. Please verify.

You have stated in the first para that the loan is approved. Is it now cancelled as you say that you have been asked to reapply?

Hemang (Advocate) 24 June 2013

The Bank has to profess its standard according to what has been laid down under the RBI Guidelines. The Bank, or the Company cannot behave in a manner it likes. This is a matter of contract and rendering of services for "consideration" as understood within the meaning of Consumer Protection Act. Just obtain all relevant loan papers. Serve the notice to the effect that not releasing the amount as agreed amounts to deficiency in service. File a case before the consumer forum. And, if you would not like to avail the loan due to deficiency in service, ask for the relief of refund. Because the company that commits deficiency in service is not entitled to say that it will not refund the processing fees.