Monday, February 7, 2022

Home loan Experience - State Bank Of India (SBI), Pune

 I am re-locating to Pune for my new job and was initially looking for housing on rent, near Kalayani Nagar or Viman Nagar. Surprised to see that the rentals are top of the roof, Rs 40,000 for 3BHK (un-furnished), Kitchen without cabinets, no wardrobes...  this was really shocking as I am moving from Bangalore and people as well as online posts said that Pune is cheaper than Bangalore, but really not, I didn't find any difference in cost.

After searching a lot and not able to find a flat in budget that I was looking for, I decided to take up a un-construction flat. 

The flat building is approved by SBI for loan, so they were the first choice for Home Loan. I also applied at HDFC to be on the safer side.

Loan Applying process

HDFC loan process, approval process is great, but because of some last moment issues, I had to settle with SBI.

Believe it or not, I got loan distributed within a day, I was in Pune just for couple of days to sign the agreement and somehow the SBI agent made the loan approved in a day !, was totally surprised.

The ENTIRE loan process is manually, lots and lots of paper work, document, nothing automated.

I did not get any update from SBI on the loan disbursement, after a couple of months, I got a call from the apartment CRM team saying that they have not received the disbursement, so I contacted the agent, who asked me to contact the SBI branch manager for update.

After following up for 2-3 days, I finally got screen shot that the disbursement was made, but NO COMMUNICATION ? either to me or the builder, Rs 30 Lacks disbursement, and no communication on EMI, PRE-EMI, Disbursement date... nothing, no call, no email...

This was just the start of issues, initially the apartment was supposed to be completed within 6 months, so after 6 months of loan disbursement, the PRE-EMI was converted to FULL-EMI, again NO communication, No email, No Phone call...  I got a SMS from CIBIL score that saw my CIBIL going down by 40 points!, when logged in I checked, SBI is showing late payment. I immediately contacted customer service (which is completely useless, as the only work they have is to tell you to contact Branch), I contacted the branch, where no one picked the call. Finally I called the bank manager ( after sending 2 emails and no response), the manager told that some one else will call me to check on this issue.

The issue was resolved after following up for a week, but they did not resolve the CIBIL score, it still till date shows late payment. Again after 4 months, the same issue happened now and I am following up with SBI, this time they told me to contact some other branch !!..  

Summary -

Avoid SBI for any kind of loan as much as you can, I personally have had very poor experiences with them, I am planning to shift my home loan to some other bank ASAP.

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