Q. This is great indian banking loot which includes both private and public banks. India is only country in world which has two floating interest rate one for old customer(PLR) and one for new(MCPLR) . So cunningly bank reduced new home loan and pegged them to MCPLR. And now charging money from old customer to move to new benchmark.
A. Govt has sensed this and pressured all banks to follow new base rate for all customers from 1Apr'16. So we can wait till then. But govt notification excluded HFC and NBFC like hdfc etc.
For the sake of knowledge, I am sharing few information :
1. The Government of India brought Home loan under priority sector and that's why the rate of interest are subsidized .
1. The Government of India brought Home loan under priority sector and that's why the rate of interest are subsidized .
2. Rate of interest for loans other than priority sector ranges between 10% to 15%.
3. It is not in the hands of banks to change the interest rate structure . Only RBI can change this and all banks have to abide by the instructions.
4. NBFCs like HDFC LTD, PNB HOUSING, DHFL, LUCHFL are not governed by RBI. They are governed by NHB.
5. Before 6 -7 years back loans were linked with PLR. Thereafter RBI changed it to Base rate . With effect from 1st April, 2016 Raghu Ram Rajan has changed it to MCLR not MCPLR .
Q. Arden residents have any special offer to change home loan to SBI.
A. Sir, For Arihant Arden charges for legal only 2100/-
Documentation charges 1100/-
As for Insurance....It is your property being Insured for security of everyone in this seismic zone. HDFC will also get it done sooner or later. We r transparent so we inform pre-hand.
Sure u can get ur ROI changed at other bank as well but SBI will still remain the leading banker in Home loan for following reasons:
# Lowest ROI
#Complete transparency
#No prior permission needed for prepayment
#No switchover fee every time there is ROI reduction within MCLR, subject to reset every year.
# Easy top up loan at almost home loan rate currently@8.70
# Insta top up facility after 3yrs upto 5lac without documentation
# Maxgain facility at marginal cost.
# Lowest ROI
#Complete transparency
#No prior permission needed for prepayment
#No switchover fee every time there is ROI reduction within MCLR, subject to reset every year.
# Easy top up loan at almost home loan rate currently@8.70
# Insta top up facility after 3yrs upto 5lac without documentation
# Maxgain facility at marginal cost.
Pls think again or discuss @8826798260
I have received reply of some of the queries form SBI Officer
I have received reply of some of the queries form SBI Officer
Q. Insurance with Banning products, what is truth?
By an SBI officer :
Truth about some Executives and working culture in India's Largest Bank State Bank of India... First of all I apologize for the poor English as I am not that good in English. But I am writing it in English so that everyone can understand.
SBI has 14 circles in the country headed by a Chief General Manager, followed by 2 General Managers , Some Deputy General Managers and so on. I am giving the truth about North East Circle which is more or less applicable to all circles. In past days, the core business of the Bank was Deposit and Advances. Later on all other business like Insurance, mutual fund, credit card, general insurance etc came to Banking and it was need of the time so that customers can avail all type of financial products under one roof. This brought the concept of cross selling.
Everything was looking good and customer friendly as customers are free to take any product for any need under one roof just like in a shopping mall. At the time of introduce it was upon customer willingness, but now it became compulsion for the customers. All because of the heavy incentives all top executives Earn from this cross sell Business. Let me show you an example how much Incentive a Top Executive earn through this:
Suppose a designated staff sells a life Insurance in any of the Branch for Rs.1,00,000/-, He'll get a Commission of near about 1,000/-, the Branch Manager will get approx Rs. 500/-, The Regional Manager will get Approx Rs. 250/-, The Deputy General Manager of the Module Will get approx Rs. 200/-, The General Manager of the network will get approx Rs. 150 and the Chief General Manager of the circle will get approx Rs.100. The structure of Incentive is more or less same in all cross sell products. It is looking very nominal, right ? Now you see
1. There are near about 50 Branches under a Regional Manager, so if he get Rs. 250 per day from each Branch then his monthly incentive will be Rs.250x50x30 = Rs. 3,75,000/- per month.
2. There are near about 140 Branches under a Deputy General Manager of the Module, so if he get Rs. 200 per day from each Branch then his monthly incentive will be Rs. 200X140x30= Rs. 8,40,000/- per month.
3. There are near about 320 Branches under a General Manager of the Network, so if he get Rs. 150 per day from each Branch then his monthly incentive will be Rs.150x320x30 = Rs. 14,40,000/- per month.
4. There are near about 580 Branches under a Chief General Manager of the circle, so if he get Rs. 100 per day from each Branch then his monthly incentive will be Rs.100x580x30 = Rs. 17,40,000/- per month.
This is a small example. The executives earns much more than this as all cross sell products yields high cash incentives to them along with foreign tour etc also. So all executives gone mad about the cross sell and they give tremendous pressure to the Branch Managers to do the cross sell by any means. You can not imagine the pressure and mental torture they give to the Branch Managers for their own benefit calling it as benefit of the Bank. Now a days all top executives are less interested in Basic Banking. To overcome the pressure and torture from the Bosses, maximum Branch Managers are bound to do cross sell forcefully. Here the victims are the customers. Let me show you how.
If you go to open a Bank Account in any of SBI Branches you have to do a Personal Accident Insurance costing Rs100, 200,500 or 1000/-. They make it compulsory, not directly but forcefully you have to do, if you argue or tell that you are not interested, they will make delay or show you some reasons that you can not open the account. Do you know the cause ? Because informal instruction is from the CGM and GM that each and every customer is to be covered compulsorily to Personal Accident Insurance. If any customer left out, they charges the BM with slang and all bad words. They will not give order in writing that it is compulsory, but the BM has to do compulsorily. Most of the customers do it as they want by any means to open the account quickly, but some customers refuses and they have to face the delay of all kind. The Branch Manager is bound to do that as the Bosses will not going to listen a single word, They are reluctant to understand that its depend upon the urgency need and willingness of the customer. If the Branch Manager fails than he has to listen so much bad things and words. So to avoid that, the poor fellow the B.M. Has to make it compulsory indirectly. Do not think that this is because of customer benefit, The CGM and GM and DGM all are forcing like hell to the staff just because of the incentive. They become so greedy and so inhuman that everyday they give tremendous pressure to all staff for this cross sell products only. They completely forgotten the basic Banking, all branches are facing staff shortage, but they never listen anything about it. They will only talk about cross sell, if you say anything about the genuine problems also, they will call you as looser or ….. or …... , so much bad words that I can not mention here. Due to staff shortage in each Branch, customers are suffering everyday, but they will not listen anything about it. Bank Directly can not force customers so they are indirectly Blackmailing the customers. Let me show you another truth :
One of SBI's very popular scheme is Express Credit, well known as Personal Loan. All salaried people can take this loan. Now as per eligibility You can avail it and Bank will offer Insurance cover also for the Loan Amount. You can avail a term insurance covering the loan amount with a nominal one time premium say Rs.500/- approx for a Rs. 5,00,000/- loan so that if anything wrong happen to you, your family need not worry to pay back the outstanding loan amount, the Insurance provider will payback the outstanding. Everything is looking good, customer friendly, right ? Now come to the truth, the Branch is not going to give you the term Insurance, instead of that they will force you to do Regular Insurance plans with high premium. For a 5,00,000/- Loan the regular premium will come approx to Rs. 30,000/- per year. It will give you an additional burden of 30,000/- per year. For availing a personal loan of Rs.5,00,000/ you need a net salary of Rs. 25,000/- to Rs. 30,000/-. First year the customer pays the premium from loan amount,but for next year it is very tough for him to pay the premium. The burden should be of one time Rs.500/-, but it become Rs.30,000/- yearly due to this so called executives. You know why? Simple, term insurance with nominal premium don't give huge incentive to the top executives, so they made it compulsory verbally to the Branch Managers that they have to cover the loan with regular plan with huge premium. If someone fails, they have to face the music. Again the poor fellow the Branch Manager has to make it compulsory indirectly by blackmailing the customers that loan will be sanctioned quickly if you do a Insurance of good amount. The person in need of the loan urgently do not have any choice and Bank is doing business on that only. Here also the victim is the customer.
This two are a small example how these old fellows so called CGM GM DGM AGM of State Bank is pressurizing their staff by torturing and behaving them badly resulting bad customer service and financial loss of customers who actually do not need the product. In my next post I will show you more truth, but it is my appeal to all people please awake and save the Bank. Help the poor fellows, the Branch Manager, the staffs and the customers from this greedy people who completely became blind. Raise your voice, use your power, don't allow anyone to blackmail you. Jai Hind.
(A WhatsApp message received by me reproduced here without any edits.Name of the sender not mentioned for obvious reasons.)
