I’d written about this before, but felt it important to bring up again.
According to the Reserve Bank of India’s Guidelines on Fair Practices Code for Lenders, Banks and Financial Institutions should convey in writing the main reason(s) which, in the opinion of the Bank or Financial Institution have led to rejection of the loan applications for all categories of loans irrespective of any threshold limits, including credit card applications.
We (my brother-in-law and I) once had a manager at the local State Bank of Mysore branch give us an once-over and simply shake his head when we’d been there to enquire about an education loan. Prior to that, a lady at the teller had said that “approving loans was at the manager’s discretion.” I so wish I had a print of this circular with me then.
What’s your experience been?
Tip Tuesdays is my initiative to share practical personal finance tips — every Tuesday. I’d be delighted if you could share a tip or two from your own experiences. Drop a comment or use this form to submit your tip. And, as always, do spread the word if you find this useful.
Further reading:
- Know Your Rights: From May 01, 2007 Your Bank Should Compulsorily Tell You Why Your Loan Application Was Rejected
- Know Your Rights: Banks Should Compulsorily Furnish A Copy Of The Loan Agreement
- Tip Tuesdays: Why You Should Not Own a Credit Card From a Bank Where You Also Have Other Deposits
- Tip Tuesdays: When’s a Good Time to Pre-close a Personal Loan?
- Tip Tuesdays: If You’ve Got Overdraft Protection on a Savings Account, Call the Bank and Cancel It Right Now
{ 1 comment… read it below or add one }
I am holding ICICI savings (salary) a/c. Few days back, they offered me the FlexiCash Overdraft facility. Without knowing much details, I agreed and signed the application form and submitted the same. Now, it is in the verification process. But after going through these useful complaints, I would like to cancel it immediately. Please suggest me that my decision is right? And how will I approach for doing the same. Thanks in advance.