12 things your bank must do for you

A conduct checklist for banks and financial institutions in India that must be followed while dealing with loan applications.

Banks and financial institutions touch almost everybody's life in more than one way. From a simple savings account to credit cards, fixed deposits, personal loans, car loans, education loans, home loans etc. banks offer a host of services.

With banks and lending institutions playing such a big role, do we know what should be their ideal conduct?

Here is a list of things that you should expect from your bank or financial institutions while taking a loan.

1. The customer should be provided with all the necessary information about a particular product so that s/he is able to determine the pros and cons of that particular product.

2. If a customer has applied for a loan, her/his application should be acknowledged and a time frame should be give within which the bank will take its decision and convey it to the applicant.

3. The banks should decide a time frame within which all the shortcomings regarding a loan application should be communicated to the customer.

4. The banks and financial institutions should clearly communicate the interest rates on different loan products through various popular media like the bank's branches, outlets, website, print and other media.

5. All borrowers should be informed periodically about the interest rates applicable to their loans.

6. Any revision in the interest rates should be communicated to the concerned borrower with in specified time frame by various popular communication methods.

7. The default or penal interest rates should be mentioned clearly to the borrower.

8. The conditions under which the bank will charge a default or penal interest and under what conditions will the bank revoke the penal interest should also be mentioned clearly.

9. Any other charges applicable to loan and other banking products should be communicated to the customer while accepting the applications.

10. All the terms and conditions applicable to the loan should be given in a document format to the borrower and it should contain full details about the amount of loan sanctioned, responsibilities of the borrower, responsibility of the bank and any other terms applicable to the loan.

11. The bank and financial institution should respect the privacy of its customers and follow strict privacy guidelines. The personal information of the customer must be confidential and should not be disclosed to any third party unless agreed to by the customer. Exceptions if any to this privacy policy should be communicated to the customer.

12. The banks and financial institutions should maintain a grievance redressal mechanism, which should receive customer's complaints and suggestions, and provide a suitable time frame for their solutions.

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