Urgent Assistance Needed: Delay in Loan Disbursement and Mandatory Insurance Issue

[TEJKUMARSAHU]

I have two concerns and would appreciate your suggestions:

1. I applied for a personal loan from Kotak Mahindra Bank, and it's been two weeks since the documentation and approval process started. I received the loan agreement last Wednesday and the E-NACH request on Thursday. Everything has been done on time, but I still haven't received the loan amount. The salesperson guiding me through the process isn't responding to my calls or messages properly, only replying on WhatsApp with vague assurances like "you'll receive the amount by EOD." My CIBIL score is over 800, my payment history is clear, and I've always paid my credit card bills and EMIs on time. I also have an ongoing personal loan with Yes Bank, for which I’ve requested a balance transfer to Kotak, and everything has been approved. Despite this, I don't understand why the disbursement is delayed. Is there anything I can do to resolve this?


2. They also pressured me into taking insurance with the loan, stating it’s mandatory for all banks except HDFC. However, I couldn’t find any relevant information about this on Google. They refused to proceed without insurance.

Can I take any action in this situation? What should I do in both c
ases?

 

[Loanogram.in]

Hi Mr. Sahu
the actionable you can follow:

1. escalate to senior officials/ md desk in case there is a lot of delay
2. just inform them that you are cancelling the proposal in case they do not respond or deviate from the t&c as was initially agreed upon
3. just check if the executive/ manager is still in system or haven't resigned
4. approach any other bank viz. HDFC etc.
5. negotiate with YES bank too where you are currently a client

Regarding second issue of yours i.e. Insurance being mandatory or not - Here I would say that insurance is never mandatory but as a banker myself, I can say that we do not get the pricing approvals without insurance or the CASA relationship of client with the bank. Therefore this process gets delayed at times. However you can still refuse/ deny the proposal if they are not agreeing or there is a deviation in t&c initially agreed upon.

Also as far as Insurance is concerned if it is a loan protect insurance that covers the loan amount for the entire term of loan, then I suggest you to avail the insurance facility in case the loan amount is huge.

In case it is a life insurance, then you can deny, however life insurance is a must product to have in today's circumstances. just do some window shopping with your banker and understand what is he trying to sell to you.

Hope this information helps

Regards
Loanogram.in
7733887727

 

[TEJKUMARSAHU]

Thank you so much sir for your response, that's very helpful.

 

[AlertsByVivek]

I have two concerns and would appreciate your suggestions:

1. I applied for a personal loan from Kotak Mahindra Bank, and it's been two weeks since the documentation and approval process started. I received the loan agreement last Wednesday and the E-NACH request on Thursday. Everything has been done on time, but I still haven't received the loan amount. The salesperson guiding me through the process isn't responding to my calls or messages properly, only replying on WhatsApp with vague assurances like "you'll receive the amount by EOD." My CIBIL score is over 800, my payment history is clear, and I've always paid my credit card bills and EMIs on time. I also have an ongoing personal loan with Yes Bank, for which I’ve requested a balance transfer to Kotak, and everything has been approved. Despite this, I don't understand why the disbursement is delayed. Is there anything I can do to resolve this?


2. They also pressured me into taking insurance with the loan, stating it’s mandatory for all banks except HDFC. However, I couldn’t find any relevant information about this on Google. They refused to proceed without insurance.

Can I take any action in this situation? What should I do in both c
ases?

A home loan insurance policy is not mandatory according to RBI guidelines.

While the RBI recommends having home loan insurance, it is clearly stated that it is not mandatory.

If you are being pressured to purchase this insurance, remember there is a free-look period of 15-30 days (depending on the channel through which you received the policy). During this period, you can cancel the policy and receive a full refund, as per consumer rights under IRDAI regulations.

For example, SBI also pressured me to buy home loan insurance, which was essentially a life insurance policy. After the loan was disbursed, I canceled the insurance and received a full refund. Make sure that the premium for this insurance is not added to your loan amount; insist on paying it via cheque or another payment method.