The actual loan needed by me was of amount Rs. 7 lac but The following things happened while taking the loan from the executive:
1. The executive told me that an insurance cover was necessary attached with the loan in order to hedge risks.
2. The sum assured for an insurance needed for a loan is supposed to equal the loan amount.
3. In fact the executive raised the loan amount by Rs. 1.5 lac and gave me an insurance cover of Rs. 28 lac using the raised amount to pay a one-time premium.
* I was mis sold a product which was not needed. The executive misused the fact that me being a layman do not know a lot about financial services.
* The loan sheet shows a spending of Rs. 1.5 lac for insurances while the premium paid is Rs. 1.4 lac. There is a differential of Rs. 10,000.
* While selling the insurance I was told this is mandatory for the loan and I will be returned the “Full Premium amount” an year later on surrendering the insurance which did not happen.
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