Interest on a Loan not Taken

Location/place: Bangalore

Name of company/service: Birla Sunlife

I am a Birla Sunlife Policy Holder since 2005.

In 2011 April I applied for a Loan of 1 Lakh against my policy and received a cheque for the amount after a week. I did not deposit the cheque. that is
never took any money from Birla Sunlife Insurance)

After a year a realised a loan of 1 Lakh still showed against my Policy with 18000/- accrued interst.

On bringing this to the notice of Birla Sunlife they reverted that the loan amount will be removed but I have to pay the accrued interest.

Why should someone pay interest on an amount that they never received.


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