Post-Sanc­tion For­mal­i­ties

Consumer Voice - - BFSI -

Next comes the as­sess­ment for loan. The bank ac­cesses the CIBIL credit score of the prospec­tive loa­nee, af­ter get­ting some amount de­posited with the bank as ‘pro­cess­ing charges’. Once the bank as­cer­tains that the CIBIL score is favourable, the process note gets pre­pared for sanc­tion.

Sanc­tion and Dis­burse­ment

The bank is­sues a ‘let­ter of sanc­tion’ stat­ing the terms and con­di­tions of sanc­tion, cov­er­ing as­pects such as amount sanc­tioned, in­ter­est rate, EMI, pe­riod of loan and mar­gin re­quired to be de­posited. It also con­tains in­for­ma­tion on ser­vice charges, de­posit­ing of post­dated cheques (PDCs) cov­er­ing the pe­riod of loan, etc. Once the bank doc­u­ments ev­i­denc­ing the loan for pur­chase of car are ex­e­cuted by the client, the loan amount is dis­bursed by means of a pay or­der

Once the loan ac­count is opened, the post­sanc­tion for­mal­i­ties begin. The de­liv­ery of the car is fol­lowed by a bank of­fi­cial’s visit for them to record the reg­is­tra­tion num­ber of the ve­hi­cle as also the date of phys­i­cal in­spec­tion of the car. The copy of the in­sur­ance pol­icy is also to be de­liv­ered to the bank, and is kept with the rel­e­vant loan doc­u­ments. This in­sur­ance is to be re­newed ev­ery year at cost to the bor­rower till clear­ance of the loan. A copy of the RC is also kept with the loan doc­u­ments.

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