Guys!
This E mail is mainly to warn all of you home and personal loan seekers againts falling in Reliance consumer finance trap. I have learnt the hard way and I am blaming myself for it!!
Modus operandi of Reliance: While most of the banks will be conservative and slow on loan disbursement, REliance will approach you with low rate and higher elegiblity. Once the loan is taken, in 3 months the rate of interest will be brought at higher than market prices. While signing the contract, they will tell you to agree on a nominal preclosure penality of 2-3%. All this seems to be fair... now just read this
I took a 95 lacs home loan from Reliance and since i wanted the disbursal before 31st march, Reliance guys agreed to do in jiffy. I had loans approved from all banks including LIC, so elegibility was not an issue!. After the loan was sanctioned, within three months, the loan rate was increased from 9% to 12%. I did not object as all the other banks also were increasing last year. From Oct 09 onwards the banks started reducing from highs to a low of 8.5% to 9%... but reliance maintained my rate at more than 12%. I tried to reason and i was told that within 2/3 weeks it will be reduced and it never happened. finally i threatened to foreclose the account and reliance guys were too happy to ask me for 2.5 % foreclosures. Inbetween I went to their HO 2/3 times, but the customer care executive new well that they have a fat catch in me and refused reducing the rate citing so may reasons--- this at a time when all banks were advertising rates in the papers at less than 8.5%. I showed them an offer from a rival bank at less than 9%!! the customer care excecutive said, yes!! please pay foreclosure charges and migrate to new bank!!. Finally i paid a hefty 2.3lac ruppee loan and moved to another bank and while this all was happening-- so sr personnel even got in touch with me.

So please cover your self when you deal with them. This is a group which is known for unethical practices and this is a proof. Go to public sectors or any other bank but not to Reliance!