POSTED BY November 27, 2012 10:22 am COMMENTS (4)ON
I have come across many instance where an applicant for a SBI Home Loan[all types], is asked to mandatorily purchase SBILife Insurance policies without which the application is rejected.
How can SBI adopt such policies which is cross-selling and making sure that Insurance company is always running into profit?
Does LIC HFL also adopt such practices? How can such things be curbed?
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4 replies on this article “SBI Home Loans and mandatory SBILife Insurance Policy”
Thanks for the detailed suggestions.
I will go ahead with a RTI application first – Can you guide me through the process?
Its just the power play and exploiting the situation . Bank knows that you will not change your mind at LAST MOMENT for just few thousands . There are few things you can do here , but this will not be easy emotionally when the thoughts of loosing the loan loan opportunity is on your mind
Option 1 – You can tell bank , that you know that its not mandatory to buy a HOME LOAN Insurance along with the loan , it has happened with many of your friends . you can get this info using RTI (SBI comes under RTI) and show it to them . This should make them shiver a bit 🙂
Option 2 – Reject the offer , say you dont want loan , literally walk off and go home , They should contact you in 2-3 days themselves saying – “Sir , we talked to our senior manager and for your case he are not making it manadatory”
Option 3 – Tell them you would like to get this in writing and also want to talk to banking ombudsman . If they will dont budge , Really file a complaint in BO 🙂 . Just make sure you have all their requests in writing .
Option 4 – Agree to pay the premium for ULIP and then in lookup period , just give back the policy saying it does not meet your requirement . This is the last resort 🙂 .
Option 5 – Thinking that ONE YEAR PREMIUM is the extra LOAN AMOUNT , just take it , This is kind of SURRENDERING to the situation , but I can understand at times, you might want to do it for the sake of situation 🙂
Thanks for the updates – It really helped.
So it depends upon how knowledgeable you are and to what extent you know the ‘Terms & Conditions’. Surely a little armtwisting will work wonders.
Even I had the similar experience during Home Loan Process. See the similar question i asked earlier http://localhost/jagoforum2/sbi-home-loan-linked-with-sbi-insurance/2965/. But note it is not mandatory to buy SBILife Insurance Policy along with Home loan.