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1/25/2006

 

The Personal Loan Circus

Have you ever tried securing a personal loan from any of these multi-national banks? If you did, you'll know how you can get shafted if you don't watch out. Interest rates vary from bank to bank, which is absurd. Think about it, Stanchart told me that it lends at 16% reducing interest. HDFC says it is 12% reducing. And Citibank is another story. Depending upon the basis�your card or savings a/c with Citibank�of the loan the rate may vary between 21% and 12%! How can various banking institutions offer at varying rates of interest? Beats me! I already have a personal loan with ICICI and I wanted to borrow more money. That sounds simple right? I am an existing customer, they have all my information, and all they need to do is key my loan a/c number and see if they can lend? Right? Wrong. Firstly, ICICI does not cater to its personal loan customers across the desk. You will have to route your loan application through a Direct Sales Agent (DSA) after you talk to customer support. And, the customer support folks at ICICI, despite telling them repeatedly that I am an existing customer, insisted on asking me redundant questions like 'What's your net salary?' or 'How long have you been working with your current employer?' I spoke to four support guys and all of them claimed that they 'have no access to my account information'! When asked if there was someone that has access, I did not get a concrete, cogent response. And now ICICI is offering loans at 11% but I can't avail of this offer because I had already taken a loan at 12% you see. I will not be treated as a new customer, the girl that helped me secure a loan earlier told me. I thought customer retention was as (if note more) important than bagging new ones? If only these guys really stuck to their ad campaigns... Hum Haina? My a$$. It ought to be Hum Hyena. Okay, sorry that was a bad joke... please adjust, my mood is screwed.
I gave up on ICICI now and am after other banks. The story, however, is the same with every bank I guess. The DSAs are often clueless and they use the line 'sir, we will get back to you' to sickening effect. I called GE-Countrywide (Now GE Money) and the girl in support said that she will pass my request to a DSA in Bangalore. When I asked her if she can give me the DSA's phone number, guess what she told me? 'Sir, they don't have a phone number.' And, I am supposed to entrust confidential information like my bank statements, credit card information, and my pay slip with a DSA who doesn't even have a phone! How do you expect me to trust a firm that has no phone? Is there any bank out there that will respect me and my little intelligence; and offer real customer support? I doubt it. If you think otherwise, leave a comment. In these days when (clich� ahoy!) information is just a click away and customers are well informed... oh f*** it, I don't want to write that line. And the online banking systems, oh sweet lord, that's another story. Will take a jab at it later. In the meantime, do not take a personal loan until you are sure as hell that you are getting the best deal. There are sites out there that'll help you; google for them lazy bum. And, don't waste time talking to those Parrots and Robots in customer care. Use the time to do something productive: get a haircut or w@nk off, you know.

Aside: Did you know that Citibank charges 100 bucks each for all its Suvidha (thanks for correcting me Bajji) customers that walk in to a branch and transact? Talk about highway robbery! Who are these guys that come up with these brilliant ideas man?
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15 Comments:

Anonymous Ravi said...

Suman,
Loved your post! The Hum Hyena 'jab' is a classic! Personally, I believe it pays to stay away from all kind of loans - personal, credit cards, home loans etc! Enjoy whatever 'little' you earn & never try to keep up with the Joneses!
:)

Wednesday, January 25, 2006 11:01:00 AM GMT+05:30  
Anonymous Suman said...

Yeah Ravi one should stay away, I agree but sometimes, one is forced to resort to risk sticking his head into a shark's mouth. :-)

Wednesday, January 25, 2006 11:45:00 AM GMT+05:30  
Blogger Vasu the terrible said...

Try the nationalised bank. Contrary to the often maligned image that is being spread about them, you would be surprised how responsive they can sometimes be.

If you donot get adequate support, the manager of the bank is approachable.

They may not be the first in terms of technology, but they can teach a thing or two to all those private banks in tackling an issue and seeing it through towards a solution as quickly as possible.

I trust BSNL lines any day more than Tata indicomm or hutch. none of the pvt guys are consisitant. For them customer support means deflecting complaints, queries from customers through endless loops of frustration.

vasu

Wednesday, January 25, 2006 1:13:00 PM GMT+05:30  
Anonymous Suman said...

Vasu, thanks, I am actually planning to talk to SBI. Let's see how it goes.

Wednesday, January 25, 2006 1:18:00 PM GMT+05:30  
Anonymous Bajji said...

Fair enough Gripe. But the last "Aside" section might need some addition. They charge 100 bucks only for the Suvidha account holders. They get to transact Net banking / Phone banking / Any Maestro ATM multiple times. This is their way to drive demand to other channels where the cost per transaction is lower. The "Regular" Citibank account holders (Min Balance 1 lac INR) can transact free at the branch. I am a Suvidha accoutn holder and I personally prefer using the other channels which are hassle free compared to their Single branch for the whole of chennai.

Wednesday, January 25, 2006 2:53:00 PM GMT+05:30  
Anonymous Suman said...

Mr.Bajji, I stand corrected. It is for Suvidha customers. But have you any idea on the ATM density of Citibank? I don't but I know that they have far too few as compared to, say, ICICI. So, until the time their ATMs become as widespread as ICICI ATMs they shouldn't be charging me. Online banking? Ha ha. How many Suvidha customers do you think use online banking? I bet it is less than 60%. Then again, you can always debate it.

Wednesday, January 25, 2006 3:29:00 PM GMT+05:30  
Anonymous Prasad Kher said...

I completely agree with Vasu! Have you tried non-MNC banks like Karnataka, Vijaya Bank or Syndicate?

I am amazed at the transformation at these places. Also, remember these are the guys who have been here for ages and have presence at villages etc doing real service, unlike the new foreign kids in the block.

Wednesday, January 25, 2006 9:59:00 PM GMT+05:30  
Blogger Vivek Kumar said...

Syndicate Bank it is.

I use ICICI for their debit card (not credit mind you) facility and good ATM network.

But for normal banking, Syndicate anytime.

Thursday, January 26, 2006 3:54:00 AM GMT+05:30  
Blogger Anusha Parthasarathy said...

Hi Suman

As couple of the folks have suggested you should try nationalised banks - SBI, Vijaya Banks etc.

Probably ICICI would co-operate if you fib that you are K V Kamath's Friend's friend's friend's nephew or something...

These days customer service is pathetic and as Vasu pointed out its best to approach the bank and speak to the manager...

"Hyena" thing was good buddy :)
I can tell you an equally FUNNY and PUNNY thing about reliance (someone told me this)

"MERA SAPNA SABKA MAAL APNA" !!!

For those who did not get it the Reliance Infocomm logo reads "Mera Sapna, Sabka Apna" !!!

Saturday, January 28, 2006 4:43:00 AM GMT+05:30  
Anonymous Anonymous said...

My father worked for Indian Bank.

"Indian bank adhu ungaladhu bank"

Rajesh

Monday, January 30, 2006 7:52:00 AM GMT+05:30  
Anonymous Anonymous said...

Hello Suman,

sorry to hear your story. It is really sad from ICICI's part. They are spending endless money in TV commmercials, other things, they forget one basic thing, how they will support these kind of expenses and these big investments. Do u think ICICI earns this kind of money, Forget it, Its all ppl's money they r spending. if they spend money wisely, they can give u a P.L. @ 6-8%! Even in US/Europe, PPL are questioning whether banks should do such big spending on marketing.
U will see within three - four years, this bubble will burst. AS for citibank, and other foreign banks, there mentality is simple. For them, we are second grade citizens, they will not treat their US/UK customers like this. Here our own (Ullu ke Pathe,) ppl working for this banks consider themselves lords.
Now india has become a place only for rich neo people. PPl like us who are typical middle class has no scope whatsoever.

Thursday, February 2, 2006 2:19:00 PM GMT+05:30  
Anonymous Anonymous said...

To give you an example of customer service @ ICICI.

My local branch is loacted 4 KM from my house, i wanted the Bank Phone number to check on my account status.

so i call up the hotline and our friendly CSO from call center talks to me and says he cannot give the phone number of the branch! i told i can almost run to the bank by the time you finish this call! after talking thru abt bad service,finally he gives me the number.

Thursday, February 2, 2006 3:29:00 PM GMT+05:30  
Blogger rakesh kay said...

canara bank is also quite approachable and has some of the lowest interest rates in the market..though initially skeptical, i was also amazed at the way things actually worked in such nat. banks..the ICICI types have no idea about customer support..i've heard the "we'll get back to you sir" line hajaar times

Tuesday, February 7, 2006 3:33:00 AM GMT+05:30  
Anonymous Anonymous said...

Suman ,

I loved reading your post ..That was excellent ..do tell us about ur other bank details too ..Its fun reading such post ..Time Pass tho hota hain na ....

Midhun

Monday, February 27, 2006 2:49:00 PM GMT+05:30  
Blogger sundararaman said...

yeah .because of the mnc banks and foreign banks and institutions middle class life in india has become miserable. they are indebted to life time. facing the wrath of the goondas hired by these banks to collect dues etc. we have to drive away the menace by forming a forum and educatiing themiddle and lower class to say no to personal loans and credit cards sundararaman

Tuesday, December 25, 2007 6:28:00 PM GMT+05:30  

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