I would like to tell about my loan process in Bank of Baroda (BOB) S. periyapalayam branch tirupur.
I applied online for the car loan and went to the branch with all necessary documents. The bank employee in the loan section was very kind to me. He explained all the formalities and interest rate. Documents were collected and forms are filled in 30 minutes. I said that approximate delivery date is Aug 20. Then he said he will call me after processing and they will disburse the DD one week prior to delivery, but He called me after one week and asked me to visit the bank.
I went to bank on July 15th, on that day bank manager was present and I was asked to get the loan immediately. Since they had their bank’s 109th anniversary on July 20th they had to show some number of loans and accounts are done on that day. I went to the manager and even she said the same. I explained that I have clearly one more month to get my car and it is of no use to pay interest without the car. Finally she said ok. Then she asked me to take an insurance policy with premium of RS 50000 per year. The policy she recommended is not good. Even a FD will do well than this. Then she started explaining insurance is not an investment, I interrupted her and I said I work with an insurance client and I know what insurance is. Then I asked for a term insurance plan, but she didn’t know about it, on explaining about it, she gave few bad examples about it and finally insurance topic is closed.
Then she gave me a SIP form. You should put an SIP with us. I asked for the Mutual funds in which it will be invested, she had no idea about and called a guy in phone and I spoke to him, even then I didn’t get proper information. Then she asked me why you are bothering about it
. You will definitely get bonus from it, being a software engineer why are you thinking? Just RS 1000 every month for 36 months totally. Again I explained that I have a DEMAT account and I am investing in mutual funds, so I need to analyze before starting a SIP. She didn’t listen to me and insisted again that she has a target of 35 per month and she had done 34. She also said they are giving me loan then as a favor why can’t I at least start an SIP from them. It was really embarrassed, as if she is giving loan for free and software engineers have no other expenses. Finally after long battle she again came to the loan topic and said they will disburse one week prior to delivery.
I saw her doing the same insurance thing to some potential customers and they were signing the forms.
Here I am wondering is she the manager of the bank or insurance agent. Is it the bank management doing this by imposing targets or she is doing this to get more incentives.