Public Service Announcement
From a recent RBI circular:
Guidelines on Fair Practices Code for Lenders
Earlier, Banks/FIs were advised that loan application forms in respect of priority sector advances up to Rs. 2.00 lakhs should be comprehensive and should include information about the fees/charges, if any, payable for processing, the amount of such fees refundable in the case of non-acceptance of application, pre-payment options and any other matter which affects the interest of the borrower, so that a meaningful comparison with that of other banks can be made and informed decision can be taken by the borrower.
The RBI now says:
With a view to achieving greater transparency and in the light of experience gained, it has been decided that the above instructions will be applicable to all loan applications in respect of all categories of loans irrespective of the amount of loan sought by the borrower.
Banks/FIs were so far advised that in the case of small borrowers seeking loans up to Rs. 2.00 lakhs the lenders should convey in writing, within stipulated time, the main reason/reasons which, in the opinion of the Bank/FI have led to rejection of the loan applications.
The RBI has amended that to:
On a review, it has been decided that in case of all categories of loans irrespective of any threshold limits, including credit card applications, Banks/FIs should convey in writing the main reason(s) which, in the opinion of the Bank/FI have led to rejection of the loan applications.
Necessary modifications in the Fair Practices Code based on the above instructions, with the approval of the Board, should be carried out by April 30, 2007. The modified Fair Practices Code should be placed on the Bank’s/FI’s website and also given wide publicity.
MYSELF THE WIDOW OF LATE DEBKUMAR BASU (WHO WAS AN A.S.I. IN
B.S.F ) ISINSTRUCTED BY AXIS BANK TO PAY THE DUES AGAINST HOME LOAN WHICH WAS EXTENDED BY THE BANK ON MORTGAGE OF OUR HOUSE EVEN AFTER IMIDIATE INTIMATION OF HIS D EATH. ON HIS DEATH ON 28.06.09 I HAD FALLEN IN A VERY DEEP INCONVENIENCE IN OUR(MYSELF,MY OLD AILING MOTHER-IN-LAW & MY 12 YEARS SON) FINANCIAL LIFE AND FAILED TO PAY THE EMIs DUE TO UNAVAILIBILITY OF FUND. ALSO I HAD AN IDEA ,THAT EVERY HOME LOAN IS COMPULSERYLY BOUNDED BY AN ESSENTIAL LIFE INSURENCE INCLUDED WITH THE PROCESSING OF HOME LOAN WHICH WILL TAKE CARE OF THE PAYMENT OF THE REST EMIs a AS THE APPLICANT HAD DIED AND WILL NOT CAUSE SERIOUS HAZARD TO THE DPENDENT FAMILY MEMBERS,THE WIFE OR MINOR CHILD .
INITIALLY THE KOLKATA OFFICE OF AXIS BANK TOLD THAT THEY MADE IT BY BAJAJ FINANTAL WHO WILL TAKE CARE OF THIS MATTER. LATER THEY DENIED IT & SEND A 60 D AYS NOTICE (THROUGH THERE CENTRAL OFFICE AT BOMBAY) TO PAY BACK THE REST AMOUNT FAILURE OF WHICH WILL CAUSE CROAKING THE PROPERTY .THEY ARE STILL SENDING LETTERS IN THE NAME OF MY DEAD HUSBAND . IN THERE LETTER, THE BOMBAY OFFICE OF THE BANK DOES NOT EVEN MENTIONED THE DEATH OF MY HUSBAND INDICATE THAT THE MATTER IS NOT PROPERLY COMMUNICATED.
IN THE OTHER HAND, VERY RECENTLY I HAVE GOT MY FAMILY PENTION AND LIKE TO PAY BACK THE INSTALLMENTDS & HAVE A MOTIVE TO PAY BACK THE REST EMIs IF THE FINANTIAL COND ITION IMPROVE ( I HAVE A CHANCE OF GETTING A JOB AGAINST COMPENTION GROUND IN COMMING FUTURE) ON TRANSFER OF THE LOAN SOLELY IN MY NAME (PRESENTLY AS PER AVAILABLE DOCUMENT, MY NAME IS SIGHTED AS CO APPLICANT) .
I HAVE NO OTHER PLACE TO RESIDE, AND BAD LY NEED COURAGIOUS SUPPORT IN THIS HAZARD . I BADLY EXPECTING SOME SOLUTION.
PLEASE SUGGEST ME THE WAY OUT.