Beware of those new generation Banks
via HK published on November 28, 2006
The new generation banks are now at your doorsteps with loans and allied services. Definitely, they are very fast in granting you a loan and you feel hassle free about the documentation even though they make you sign on a large number of papers. Even a well educated man conversant in use of English language will not find it an easy task to read all those papers, but sign at dotted places in haste to save time and also due to the `well designed customer care’ you receive. But a recent survey has revealed that these new generation banks have not cared for Educational Loans. Also, there are hidden clauses in their `Rules of Business’ even for the Saving Account.
During the previous academic year (2004-2005) all the banks in Kerala have given educational loan of 362.42 crores rupees to 33,902 applicants. In 2005-2006, rupees 617.23 crores was given to 33,338 applicants. Maximum loans were given by Canara bank (84.40 crores to 4122 applicants) and at second place is SBT (39.05 crores to 4392 applicants) followed by Federal Bank at third place (34.85 crores for 2542 applicants). The share of new generation banks is zero except for the loans given to 6 applicants from UTI bank. The ICICI bank, HDFC Bank, Indus Ind Bank and Centurian banks have not given any educational loans during this period. Whereas they top in granting other loans amounting to 5576 crores in Kerala during this period.
Those who may have opened a saving account at any time with those new generation banks and later ignored without the minimum balance (which is Rs.10,000.00 in most cases), must be prepared for a shock like the one we at times receive from Kerala Electricity Board in the form of arrear bills. There is a mention in their business rules which reads “Customers are requested to maintain sufficient funds in their account at all times to enable us to recover the monthly service charges and the charges for non-maintenance of quarterly average balance levied. The bank will have the right to set-off these charges by debiting the account. In case the balance in the account becomes overdrawn as a result of such set-off, the bank will be entitled to charge interest at the clean overdraft rate for the period for which the account remains overdrawn”. So, please be careful about these clauses hitherto unknown in the old style banking where we ignore about an account if there is no balance left in it.
Welcome to Haindava Keralam! Register for Free or Login as a privileged HK member to enjoy auto-approval of your comments and to receive periodic updates.
Latest Articles from Kerala Focus
- തിരുവാഭരണ പാതയിൽ സ്ഫോടക വസ്തുക്കൾ കണ്ടെത്തിയത് അന്വേഷിക്കണം: കെ.സുരേന്ദ്രൻ
- A Day with Hrudaya & Bhagya, Daughters of Veerbalidani Renjith
- സഞ്ജിതിന്റെ ഭാര്യയുടെ ജീവന് ഭീഷണിയുണ്ട്: പോലീസ് സംരക്ഷണം നൽകണം: കുമ്മനം രാജശേഖരൻ
- Kerala’s Saga of Tackling Political Violence
- Tribute to Nandu Mahadeva ; Powerhouse of Positivity
- പാലക്കാടിന്റെ സ്വന്തം മെട്രോമാൻ
- കേന്ദ്രഏജൻസികളുടെ അന്വേഷണം സംസ്ഥാന സർക്കാർ തടസപ്പെടുത്താൻ ശ്രമിക്കുന്നു: കെ.സുരേന്ദ്രൻ
- Kerala nun exposes #ChurchRapes
- Swami Chidanandapuri on “Why Hindu Need a Vote Bank?”
- Forgotten Temples Of Malappuram – Part I (Nalambalam of Ramapuram)
Responses