Is it legal to approve loan only if i pay premium of some amount?

I applied for personal loan from a finance company. They took the processing fees from me to get praman patra from SDM court. We were not able to get it as it is issued against property. So now the the finance company is asking to pay the premium and thereafter they could approve my loan. Is it legal can they do that?

Answers (1)

486 votes

Unless your loan is approved, finance company cannot ask you to pay the premium. 

So we suggest that you should submit an application thereby refusing them to charge the premium 

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