[Resolved]  Avanse Financial Services — Cheating money in Educational Loan

Address: Avanse Financial Services Ltd, 001 & 002 Fulcrum, A Wing, Ground Floor, Sahar Road, Next to Hyatt Regency, Andheri(E) , Mumbai-400099

Website: www.avanse.com;

Avanse financial services was a private institution that offers education loan for the purpose of higher studies. HDFC credila was our first priority but the loan process was delayed due to unknown reasons. Hence, we were forced to contact Avanse financial services for the education loan. We applied for a loan amount of 25, 00, 000. The process was very quick and easy and the loan amount of Rs.21, 00, 000 was sanctioned ( loan account number CHEEE[protected] promptly in a matter of 5 days. After the loan was sanctioned, we headed to the office to complete the formalities and to sign the contract. We were asked to pay a processing fee of Rs. 20, 000 . We were then told that an amount of Rs.1, 10, 000 to be paid for insurance purposes which was unprecedented and unheard of. After inquiring about it, we were assured that only 70, 000 was mandatory (insurance for both student and his father) and the rest of the insurance can and will be removed from it. Later the loan amount was disbursed in just 5 days to our account. After the loan amount was credited into our account, surprisingly, the staff Mr.Aravind asked us to pay the amount of Rs.40, 000 for insurance purposes. When asked about it we were informed that it was mandatory and the staff was very evasive about the answer. Initially we were informed that the amount to be paid as a deposit which should be paid every year. We refused to pay the deposit and the staff said that is for travel insurance for the student. It was only after that he asked us to sign up for Paramerica Insurance which set us back another Rs.40, 000 excluding the Rs.70, 000 which was mandatory. The whole process seemed shady right from the start. The only downside was that it was swift and less complicated.

Later the VISA was rejected and requested Avanse financial services to cancel the loan. We paid all the amount including the interest. Though, the insurance amount was not returned back. After a long fight, we received only 35, 000 out of 70, 000. The remaining 35, 000 were cancellation charges for the insurance, even though we were told right from the start that the insurance amount would be refunded in full. When we enquired about the travel insurance amount, we were informed that the amount will be paid after 1 year. We were not guaranteed that the 40, 000 would be refunded next year. May be there will be another reason awaiting.

This seemed like a neat trick to con the customer’s money.