Chennai: Anna Nagar branch of CICIC bank was the subject of headlines today when Mr. Murugan, a local resident, registered a complaint against the bank for delaying his pre approved home loan.
Mr. Murugan works in one of those multinationals with a hefty pay package and always pays his bills on time. He carries two credit cards in two different colours and in two different metal names. With regular bill payments, his credit scores are higher than the collective number of Indian representation in the last 10 Olympics put together.
With the high score, Mr. Murugan gets daily calls from various banks offering all sorts of loans, including a personal loan. CICIC bank, where he holds the salary account, advertises at least 4 loans for his profile whenever he logged into Internet banking. All of them say pre approved with a green tick mark next to the pre approved amount.
Lured by a TV advertisement, Mr. Murugan decided to buy a home in the outskirts of Chennai, yet very much within the city limits. When he approached the bank for the pre approved home loan, the bank asked him for tons of paperwork. Mr. Murugan quickly finished all the formalities and awaited for the loan disbursement within 48 hours, as advertised.
When two days turned into more like 2 weeks time, he approached the bank to find out why it is taking too much time. The bank said a couple of more approvals required and the money will be in it’s way to the builder. A month passed with no word from the bank and continuous calls and abusive words from the builder.
Finally, after two months and a threat from Mr. Murugan that he will go on a hunger strike, the bank relented and disbursed the loan. When Faking News contacted the bank for comments,
“See! People like Murugan should understand about pre approved loans. After the pre approval, there are two intermediary approvals before the actual approval happens. But wait! One can’t lay his hands on the loan amount once the loan is approved. It is the post approval formalities which takes the most time. CICIC is proud to announce that our post approval turnaround time is the fastest in the industry!” the branch manager said.
When asked about the 48 hours promise, he clarified categorically that it is the time taken to get the application form for a pre approved loan.