HOME LOANS AND INSURANCE – WHERE IS THE CATCH !!!


The moment the home loan is sanctioned the borrower is elated as if he got a bumper prize but the truth is that he has entered into an agreement of longstanding labour.

Majority of the financial institutions or the managers at the banks or the banks itself will have an INSURANCE POLICY attached to the HOME LOANS.

Some banks/financial institutions add a single premium to the loan amount and the unsuspecting, ignorant and dumb buyers sign the home loan agreement, which includes the insurance premium not only on the life of the borrower but also for the property.

The insurance premium varies on the amount borrowed and the age of the borrower and in general, the premium on an average is around Rs.50,000/- for Rs.25 to 50 lakhs.

Even though the borrower has covered his life with insurance from some other company, the lending institution/bank will provide insurance for the borrower as well as the property, so as to ensure that the bank money is NOT LOST.

The insurance premium is added to the home loan and the borrower pays interest on this for many numbers of years.

This premium along with other charges, taxes, clubhouse, deposits and statutory duties forms around 20% to 25%.  The borrower pays interest on these additional amounts.  It is a lifetime punishment for the borrower.

 

FRAUD AND CHEATING UNDER THE NAME OF CLUBHOUSE MEMBERSHIP, BESCOM DEPOSIT, BWSSB DEPOSIT AND LEGAL CHARGES OR EXPENSES—-CHECK-THE ADDITIONAL EXPENSES AND CHARGES WHILE BUYING A SITE OR APARTMENT


Spicy Ads in newspapers and on the internet and melodious and spicy callers on phone trying to sell/market the properties is the order of the day.

Buyers are not aware of the charges, taxes, deposits and other additions to the prices quoted by the sellers/builders and marketing agencies.

The following may be the some of the additions which are generally and usually hidden/concealed or not made public.

1). Club House. ( In general, the membership is not at all required for the majority of the buyers, but the builders’ force/compel the buyers to PAY FOR IT)

The average cost or charge is around Rs.50,000 to Rs.3,00,000/-

The buyers without any awareness pay this amount.  This forms a part of his loan.  The buyers pay interest for this unnecessary addition.

2). GST.

This is a statutory tax payable.

3). Electricity Deposit.

The deposit is calculated on the KV allocated or sanctioned as a whole to the project and is divided into each apartment based on the allocation.

Fraud and Cheating under the name and style of Deposit.

In general, all the sellers charge ABNORMAL deposits amounting anywhere between Rs.50,000/- to Rs.2,00,000/-

4). Water Supply Deposit.

This is levied on the builder by the supplier on the Pro-Rata basis, this deposit is charged for the whole complex or project.

Fraud and Cheating under the name and style of Deposit.

In general, all the sellers charge ABNORMAL deposits amounting anywhere between Rs.50,000/- to Rs.2,00,000/-

5). Legal Charges.

Major Fraud and Cheating Head.

Whose legal charges?

NO ADVOCATE OR LAWYER or LAW FIRM has paid any service tax on this head, which is illegally collected by the sellers/builders.

For Example, One housing complex has 100 apartments and the seller/builder charges Rs.30,000/- on an average as legal charges or expenses and collects the same from the property buyers and this amount totals around Rs,30,00,000/-

NONE OF THE ADVOCATES OR LAWYERS OR LAW FIRMS have ever shown this amount in their SERVICE TAX RETURNS NOR IN THEIR INCOME TAX RETURNS.  It is pocketed by XXXXXXXXXXXXXXXXXXXXXXXX. Great Cheating and Fraud.

6). There are few interesting characters/sellers/builders which charge or demand payment for the POWER GENERATOR in the complex.

It is generally between Rs.25,000/- to Rs.75,000/-

In addition, there are statutory or mandatory duties like Stamp Duty, Cess and Registration Fee must be borne by the buyers at the prescribed structure.

All the aforesaid taxes, charges, deposits (legal and illegal) works out at around 20% above the price quoted in the newspapers and the offered or quoted price.

NOTHING IS FREE.

EVEN THE WORD FREE IS NOT FREE.

The buyers must pay for all the services including transportation for the inspection, home loan mela venue rent, coffee, tea, soft drinks, sweet talk, brochure and what not.

ANYTHING AND EVERYTHING is CHARGEABLE.  NOTHING IF FREE.