HDFC Credila
Wrongful charge of Credit Insurance premium on Unsecured Loan

Dear Sir,

I have got Education Loan of Rs 8 lacs sanctioned from HDFC Credila, Mumbai for my son for overseas studies. I was not required to provide any collateral.and they have charged higher rate as it falls under the category of unsecured loan.

On taking the disbursement, I have given post dated cheques as part of documentation. I was also required to make payment to HDFC ERGO for taking insurance cover for this unsecured loan which in other terms means that in case of my default, HDFC Credila will gat money from HDFC ERGO.

My complaint is as under :

a) If my loan is sanctioned as unsecured loan and the interest rate levied (which is higher) is for unsecured category why I should I pay for Insurance (to HDFC ERGO) securing loan (for HDFC Credila).?

b) If I am paying for Insurance, the loan becomes secured for HDFC Credila, then should not HDFC Credila charge lower rate of interest applicable to my loan?

c) Why there is compulsion to take CREDIT insurance from HDFC ERGO? They are indirectly garnering business for its sister concern.

I shall be grateful if your forum can help in getting refund of insurance premium charged.

Thanking you,

Yours sincerely

Hitendra Mehta

Company: HDFC Credila
Country: India
State: Maharashtra
City: Mumbai Suburban

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