Dear Members, are you coming across any situation when you apply for loan from a bank and paying processing fee along with the application. After you have paid processing fee, the bank has rejected the loan application without assigning any reason or assigning some irrelevant reason. I am looking for feedback.views on the subject from the members. Recently a case has come up wherein the person applied for purchase of property from his brother but the bank after charging processing fee of Rs. 6,000/- rejected his loan application on the ground that you are buying property from blood relative. I am quite sure the person must have discussed informally with the bank even before submitting formal application. This need to be taken up with the authorities and hence I am seeking your views/ experience if any on the situation.

Dear Members, are you coming across any situation when you apply for loan from a bank and paying processing fee along with the application. After you have paid processing fee, the bank has rejected the loan application without assigning any reason or assigning some irrelevant reason. I am looking for feedback.views on the subject from the members. Recently a case has come up wherein the person applied for purchase of property from his brother but the bank after charging processing fee of Rs. 6,000/- rejected his loan application on the ground that you are buying property from blood relative. I am quite sure the person must have discussed informally with the bank even before submitting formal application. This need to be taken up with the authorities and hence I am seeking your views/ experience if any on the situation. more

Helpful Connected Consumers (Delhi NCR) Jun 09

Viewed by 248

Shyam Shrivastava

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Oct 31

Harpal Singh Ex Director, Bureau Of Indian Standards

I have taken bank financial institutions loans for purchase of motor vehicles and the applications were promptly processed. I have no experience of getting a loan for property while my son does have. Of course, he has purchased from well known builders and his applications have never been rejected. more

Jun 09

Brij Gupta

These are bank agents who deal with customers and gives them promise that they will get their loan sanctioned and based on that you submit your application with a processing fee. If the bank later finds that the loan can not be given and in this case, it is a valid reason from the bank, the processing fee can not be refunded since it is the efforts on their side for processing the application. It is just like getting visa - you submit your application along with the fee and later many times, the visa is not granted. Just submitting an application and processing fee, does not guarantee you the loan if the bank finds that recovery of loan may not be possible - in this case the property belongs to blood relative and no bank will give loan for such deal. more

Jun 09