• KreditStreet

No Pain No Gain

Updated: Mar 10

How is it that different banks charge different rates for the same loan amount.

How is it that different banks charge different rates for the same loan amount. All I was looking for is a Rs 50 Lakhs of unsecured loan. I own a large company and my business has been growing for last 7 years.

It all started when a friend introduced me to a large MNC Indian bank whose relationship manager came and had a preliminary discussion. It all seemed fine till the day he came to do the documentation. He first asked for last 3 years financials and GST returns and said the loan would be processed in 7 days. After 3 days, I received a call from an unknown entity who wanted to visit my factory for a verification. I entertained him, asking him whether all is fine. He seemed a bit circumspect. In the next few days, I received another call from the relationship manager again asking for 6 months bank statement, break up of debtors statements, category wise debtors ageing, CC sanction letter, another banks bank statement and my personal loan sanction letter as well. 10 days went by and still no disbursement. They called on the 12th day, requesting for a visit by the credit manager. I acknowledged with a hope that now the disbursement will proceed.

By the end of the 15th day, the relationship manager came again with a sanction letter of Rs 40 Lakhs and a 2% higher differential rate of interest than what was discussed. I had to sign it, because I needed to urgently pay my creditors, all long standing parties.

I wish this entire process could be better managed!!!


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