If it is too good to be true…

A few days ago Mihir posted a comment on how someone claiming to be from Bajaj Finserv is offering him a loan at 5% if he takes one of their single premium insurance policies. Then another similar comment came in yesterday but this time about Reliance Capital.

I’ve not heard of what this is about but of course it smells of trouble. Can any reader or someone from Bajaj Finserv or Reliance Capital throw some light on what this is all about?

Here are the comments for reference and full details.

Mihir June 27, 2013 at 11:47 am [edit]

Enquiry about loans from bajaj capital at 5% rate of interest.

Hi all, I am posting a topics after long. My PC is down and hence typing through phone… plz forgive for any typos.

Since last 2 weeks I am getting phone calls from sales executive from bajaj capital. The agent claims to provide loans for an interest rate of 5%.

All tht one has to do is buy a bajaj alliance policy for a premium amount of 10% of the value of the loan required. For 10lacs of loan required one has to buy a single premium policy with premium of 1 lac.

5hen these guys would internally make themselves the policy nominee (both being bajaj entities)as a security and disburse the loan amount.

this offer seems very attractive, and there has to be a catch to it. which is not being revealed. however though at 5‰ interest rates it seems to be too good to be true.

I tried calling Baja capital Helpdesk no, they gave me their delhi HO no., which no one responds to.

I thought to bring it on this forum to know your views, opinions and advice on this.

this could be a boon to a needy, or it could be a con or a misinformed investment trap.

Please suggest.


Umesh June 27, 2013 at 12:05 pm [edit]

An offer that seems too good or to attractive should be thoroughly checked/investigated.
There may be/should be some catch.
Otherwise in this time of high interest rates no one is going to give loan @ 5%


sandeep June 27, 2013 at 12:17 pm [edit]

I have also heard about this type of product from birla finance and when i enquired about such type of product from internally from birla i got there are no such type of product released by the Company.

Can somebody more explain on this.


 Manshu June 27, 2013 at 5:54 pm [edit]

I have not heard of anything like this and it doesn’t sound like a real offer to me. I can create a post out of this question, and see if anyone else has got such offers and what their experience has been. Like others, my first reaction is to stay away from any such plans.


Mihir June 27, 2013 at 6:30 pm [edit]

Manshu, That is a great idea!

I believe more people would want to know about the truth of such schemes, may want to benefit from it or stay away as per their situation. This would be helpful to all of the audience. Please create a post for this.

I have also asked the person to call me on friday evening to discuss more. The person has tole me the process would be online(raises more suspiscion) and documents need to be sent to a Bajaj Capital office in Marol, Andheri, Mumbai. This gives some assurance that it may not be a con, but still need to discover the catch.

Will keep all posted


Mihir July 3, 2013 at 1:07 pm [edit]

Spoke to the guy on Tuesday,

Just to make it easy for him. I told him I am interested. The agent kept on confirming that there are no hiddend charges!

One has to buy a bajaj Allianz policy and use it as a security to take up the loan, when I constantly asked him to share Terms and conditions (To make sure this is not a fraud) he asked me to goto:http://www.bajajfinservlending.in/salaried-personal-loan.aspx

However I had to pull away myself for a meeting. So I gave him my frnds no. as reference, that friend of mine works with acturial dept of an insurance company.

SO he may get more info. :)


Kedar July 3, 2013 at 4:33 pm [edit]


I too got a call from reliance capital today, the person said that they will give loan at 0%!!!!


4 thoughts on “If it is too good to be true…”

  1. Even if u r getting a let say 10% discount in interest rate arnt you realizing that a 1 lac premium is lost forever. Assume that you dont die during the tenure of the loan, the finance company will get an amount equal to 1 lac fr free. If u take a loan 10 lac fr 1 yr only den wud u breakeven paying 50k as interest during the 1 yr assuming u payback at da end of the 12th month. So unless u take a higher value loan ie over 10 lacs fr a year n dey still ask u a fr a 1 lac premium, its just a way to make the interest sound like insurance premium. Dont fall for it. The real interest is 15% or even higher

    1. That’s how insurance works, I mean they aren’t changing the nature of the insurance policy if you take the loan from them.

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