Often to give every bit of effort we end up taking housing loans and there is hardly anyone who would want to take a loan from private banks over government-affiliated organizations. LIC housing finance is a known organization when it comes to housing loans and many people trust the organization without thinking back and forth. But the question is that is it worth taking a loan from LIC? Well, we cannot expect a profit when it comes to taking a loan but at least we should make sure that we are losing way too much.
Most of the time people end up spending a lot while returning the interest of the bank so that should not be the scenario here with LIC. If you are someone who blindly believes in LIC housing finance and is thinking of getting your loan sanctioned from there then you need to know about the most common Disadvantages Of LIC Housing Finance. Only after knowing the disadvantages you would be able to decide whether you should go with LIC housing finance or not:
Poor service after getting the loan:
This is so annoying that the work of the employees appointed by LIC is just to convince their customers to get loans from them and they don’t bother about the rest of the things. Now let us face the reality that a person doesn’t take housing loans more than one time so most of us have limited information about the whole procedure which can make us curious about small things.
If you would go to them asking about your doubts then they would make you wait for a long time and in the end, they would not even provide you with proper information. It just seems like that they already gave the loan and now the customer has to suffer until the loan is not paid which should not be the thing when it comes to any such public services.
The fluctuation of interest level:
Now, when someone gets into a loan organization, then that person asks about the interest and then only gets the loan and everyone does the same in this case. We often decide the organization depending upon the interest rate so it becomes really important for us to know about the interest percentage of the loan.
The problem with LIC is that they would let you know a certain interest amount but as time would pass the interest amount can also increase. So if you took the loan with 10 percent interest then there are chances that you may end up giving 12 percent or so interest at the mid of the loan period. There is no point in getting service in less interest rate and later paying a high-interest rate.
Misguide about the whole process:
Most of us get a loan from LIC just because their loan procedure is very simple and they would not investigate a lot about your papers and document before getting you a loan. This is convenient if the service stays this flexible throughout the loan period but sadly that is not the case with LIC.
Just like they would not bother much about your papers, so they would expect that you too do not bother much about their work. The worst part there is that they would misguide you at times so you may feel relaxed for a while but at the end of the time, it would be you who would not be aware of the whole procedure of the loan service.
Lack of information and corporation from the employees:
No matter what they would not cooperate with you and they would not bother even if you are in real trouble with the process of the loan. The lack of information is something that would annoy you the most and at the end of the time, it would be you who would have to face all the trouble all on your own.
There would not be any deduction reminder from their side so you might have to check the office for the dates and at the same time, you would not be able to know how many more months of years you would have to bear the loan.
The worst part is yet to come and that is the hidden charges, so at first, they would not tell you about all the charges that you have to bear but later on, you would have to pay for a lot more rather than just the loan amount and the interest amount.
Would not let you leave a job until the loan is clear:
The whole process would depend on where you are working and how long you would have the job and they would make sure you don’t leave the job in between. Leaving the job can be a big problem in this case so even if you want to settle for a better job then also this organization would not let you do so.
There are some disadvantages and advantages to every loan service just like LIC housing finance and even LIC housing finance has some advantages as well. It is you who have to make the correct decision of taking the loan otherwise you may have to suffer for a long time and for such information you can browse through Financeshed.