Can co-operative bank force me to purchase LIC for loan

[samkapoor77]

I have applied for a loan of Rs. 8 lakhs from Co-operative Bank. The bank has put a condition for sanctioning and disbursing this loan to me. They said that I need to purchase a fresh LIC policy from them. This bank is a corporate agent of LIC. Are they right in their practice? If no, then what action I can take against them?

[samkapoor77]

I will suggest you to apply in some other bank for loan. It is a wrong practice for which you can either write to RBI or can file a complaint with banking ombudsman.

[Author]

Posts