DiGiTaLmAnIc

This story happened two years back. But I remembered this now after getting a call from this so called City Finance stating “Sir, we can provide up to 10 lakhs”

Venue: City Finance (Claiming loans section of City Bank), Vazhuthacaud, Trivandrum (Kerala, INDIA) 

Simply this bank is a new generation form of our old ‘blade’ agents.  There are many new generation banks in this list.

About Blade agents: They are those who give money for high interest rates. Say, you need Rs. 100/-, they will give you Rs. 90/- in the morning and you will need to repay it as Rs. 100/- by the same evening. If you need bigger amount on monthly basis, you can get it for Rs. 6/- to Rs. 10/- per Rs. 100/- per month depends on your ability of negotiation. If you default the payment, you will need to face Gundas (people who will do anything for money).

Story

An agent from this finance company calls me every week twice even after informing I do not need a loan. His name was Rajesh if I remember correctly.

Not sure where these frauds get the phone numbers. One bank employee friend told me it is shared by the private banks itself.

After some weeks he informed me they ‘created’ a very special interest offer for me. Since I felt they are trying to giving me ‘free money’, I told them we will discuss. At their office I faced 3-4 executives with ‘tie’. I was impressed with their behavior but still I was not interested to take loan from a private bank since I heard much bad stories about them. At last I decided to take a small loan. Rs. 20,000/- was their minimum loan limit. They told me they can avail it for 16%. I gave them 36 cheque leaves for EMIs.

public sector banks offer interest from 14%.  But it is difficult to get a loan unless you can impress the manger with English speaking, job etc.

But private banks can give you loan without any inconvenience.

But one must understand ‘nobody will give you anything for free’

I took that loan for 3 years tenure and I realized the real fraud face of City Finance only after getting the ‘welcome letter’ from them. Nobody from the bank branch was able to explain the calculation method used in the EMI printed in the letter. Or they are not ready to explain it to me. For Rs. 20,000/- loan I had to re-pay nearly 1,00,000 in three years.

After some quarrels (even lady staff was there to quarrel!), I decided to close the loan and since I was angry, I wanted to close that day itself. Now their explanation of closing.

1. One month EMI will be charged
2. 15% will be charged extra as pre-closure charges
3. Blah blah charges (documentation etc.)
4. It will take one more to get back the EMI cheques

I had no options and I wanted to save myself from future dangers. So I deposited nearly Rs. 6000/-. I had to give my latest bank statement for the proof. Suffered a lot to close the loan.

After that they refused to give me any kind of recept/document saying I closed the loan. It was an extreme limit and I called a knowing police friend for help. So the fraud people promised they will give me the EMI cheques in one month. I went to my bank branch and gave request for cancellation of the EMI cheques.

After one month they called me and handed over the cheques.  But surprised to see 5 cheques were missing. After enquiry they said it is their policy to keep 5 cheques of all their loans.

I did not want to go before that anymore and I was mentally prepared to go through their path… pay money to Gundas… if they again make unnecessary problems.

So friends, I request all not to take any loan from these private sector ‘new-generation’ banks and go for only public sector banks.