Nondisbursement of Loan amount in favour of the Loanee.

Location/place: Rourkela, Odisha

Name of company/service: LIC Housing Finance Ltd.


The Regional Manager

LIC Housing Finance Ltd.,

Ground Floor,

4, C.R. Avenue, Hindustan Bldg.

Kolkata – 72 ( West Bengal)

Sub: Disbursement of Loan amount in favour of the Loanee.

Ref: LICHFL, Rourkela Branch, Loan A/c No.32507823.



I, the undersigned, would like to bring the following facts for favour of your information and suitable redressal.

That, I had taken a loan amounting to Rs. 5,45,000/- vide loan A/c No 32507881 from LICHFL, Rourkela Branch. I have been paying the EMI amounting to Rs. 5772/- per month regularly towards repayment of the loan.

Subsequently, in March- 2010, I had applied for another loan for extension of the existing house and partial construction of the first floor. Accordingly, I deposited all the requisite documents and after due verification, an amount of Rs. 7,80,000/- was sanctioned for the above purpose vide loan A/c No. 32507823.

Sri Nanda, the Branch Manager of LICHFL, Rourkela informed me that the sanctioned amount will be disbursed in a phased manner. But, unfortunately, even after fulfilling all the criteria, the first installment of the sanctioned loan amount was not disbursed in favour of me timely. In spite of several persuasion, Sri Nanda, with one plea or other delayed the disbursement of the Ist installment up to 3 months from the date of sanction.

It is worth mentioning here that, at the time of sanction of subsequent loan, I had submitted post dated cheques each amounting to Rs. 6965/- up to Dec. 2010. In connection with the loan A/c No. 32507881, I had already submitted post dated cheques up to Feb – 2011 vide SBI Rail Vihar Branch, Bhubaneswar cheque No. 841302 to 841313. At the time of sanction of the new loan, Sri Nanda had advised me to deposit post dated cheques of amount (5772/- + 6965/-) Rs. 12,737/- each towards both the loan A/c from Jan. – 2011 onwards.

Accordingly, on 4th Jan 2011, I had deposited post dated cheques each amounting to Rs. 12737/- from Jan – 2011 to Dec-2011, mentioning both the loan A/c on its reverse vide IOB, Sailashree Vihar Branch, Bhubaneswar cheque Nos. 670022 to 670033.

At the same time, in the month of Jan-2011, I requested Sri Nanda to release and disburse the last installment of sanctioned loan of Rs. 80,000/- at the earliest as the construction of my house was almost completed. Sri Nanda also assured me to release the amount soon.

Unfortunately, the required amount was not released till Feb. On enquiry, Sri Nanda informed me that the cheques I had deposited for the month of January 2011 to February 2011 towards loan A/c No. 32507881 have been bounced for which the last phase of sanctioned loan amount has not been released.

It is worth mentioning here that the SBI cheques deposited by me for loan account No. 32507881 of Rs. 5772/- for the month of Jan. & Feb. 2011 should have been returned to me after obtaining from me the fresh cheques of IOB each amounting to Rs. 12737/- for both the loan accounts. Besides, the cheques of loan account No. 32507881 should not interfere in the releasing of sanctioned loan amount of A/c No. 32507823 as both the loan accounts are different and have no link with each other.

However, when I appraised the fact and pointed out the fault on the part of LICHFL that I have already deposited the post dated cheques of IOB towards both the loan A/c, Sri Nanda assured that after clearance of the cheques for the month of Jan. & Feb 2011, the last installment of loan amount will be released. But he did not accept the fault committed by them and asked me to pay additional amount for the cheques which were bounced.

In the month of March 2011, the EMI against both the loan A/c for the month of Jan & Feb. was cleared. I again approached Sri Nanda for the release of Rs. 80,000/- in favour of me, when he informed that after clearance of the EMI for the month of March, the amount will be released.

It is surprising to notice here that for no fault on my part, I have been compelled to suffer. Moreover, the systems of EMI, has been envisaged with the intention to recover the loan from the loanee in easy installment. If the EMIs of two to three months will be collected in one month, then it will definitely put the loanee in a difficult situation.

It is expected that the promptness shown by LICHFL in collecting the EMI through post dated cheques and in intimating about the non payment of EMI to the customer should also be shown in disbursement of the loan amount to the loanee in time.

I would also like to draw your attention towards the behavior and attitude of Sri Nanda, the Branch Manager, LICHFL, Rourkela. Since I am a customer of LICHFL, Rourkela Branch, so I will obviously approach and intimate Sri Nanda, the Branch Manager of LICHFL, Rourkela regarding any difficulty faced by me. But, unfortunately Sri Nanda neither pricking up or responding my call nor redressing my genuine grievance of non-disbursement of the last installment of sanctioned loan amount. On being personally approached he expressed his inability to do any thing shirking his responsibilities on the Area Manager, Kolkata who is responsible for releasing the loan amount from Kolkata and he has got nothing to do with the release of the last installment of the sanctioned loan amount. In between Jan. 2011 and March 2011, I had personally contacted him twice and on both the occasion he avoided to discuss regarding the release of the amount on one pretext or other. Since I am residing at Bhubaneswar due to my job so I had to contact Sh. Nanda over phone. During my personal contact when I asked him to why he is not picking up my phone, he replied that he is a busy man and he has got many works to do and he can not attend all the phone calls. It appears that he is more concerned about the recovery than the disbursement. I would like to request you to let me know if such attitude and behavior of a Branch Manager of LICHFL towards a customer is the acceptable norms of the company. I may also be intimated as to whether it is not the duty of the Branch Manager to pursue the matter with the Area Manager, Kolkata for timely disbursement of the loan amount and appraise the customer accordingly.

I am an old customer of LICHFL and by virtue of my previous experience, I had preferred the LICHFL for subsequent loan. Besides, I am a Central Government Employee and well aware about my duties and responsibilities. I have been paying the EMIs towards repayment of my previous loan account as well as the subsequent loan A/c regularly and expecting similar response from your end towards disbursement of the loan amount in time. But in the instant case the inordinate delay in disbursing the loan amount has really hurt me and compelled me to stop further payment of EMIs till the pending amount of Rs. 80,000/- is paid to me along with interest from Jan. 2011 to till date at the same rate which is charged to a customer in case of his default in paying the EMIs.

In this respect I have already sent a letter to the Area Manager, LICHFL by Post which may please be connected.

Yours sincerely,

Uday Bhanu Biswal

Qtrs. No. C-143,

Koel Nagar, Rourkela

PIN – 769014,

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