You submitted loan application to bank and the bank is silent since more than 1 year. What action you can take

Answer 1

First of all the applicant of any loan should not wait for reply for a such a long time of more than a year. He should followup his application and get suitable replies from the concerned authorities from time to time.

For various reasons there may be delay on the part of the banker in informing the applicant about the sanction or rejection of the loan application.

But it is the responsibility of the appilcant to know the position of his application from time to time. He should be in a position to give any additional information to the banker for appraising his application at an early date. If the applicant shows no interest to know the position of his application and supplement any other information that may be required by the banker, the banker may put aside the application thinking that the applicant is not dynamic enough to be eligible for the said loan. However the banker also got the responsibility of informing the applicant, the position of the proposal from time to time and call for all the required data to appraise the loan application within a reasonable time.

Even if the applicant followup the application, and could not get suitable reply from the banker, he can lodge a complaint requesting the position of his application with the regional office of the concerned bank.

In case if he fails to get a suitable reply from them also, he can forward his letter of complaint to the Head Office of the concerned bank.

Inspite of all this, if he cannot get a reply from the branch regarding the sanciton of loan or rejection of loan application with the reasons of rejection, he can file a complaint to Banks Ombudsman seeking justice.

All the bank branches display the addresses of the regional office, head office and appelete authority in their notice board prominently. If the application is under any government scheme, the applicant may lodge suitable complaint against the banker for delay with the concerned government department aswell (In the case of PMRY loans, the District Industries Centre will be the coordinating body between the applicant and banker).

Answer 2

What action did you take "during" the year?

If for more than a year neither the prospective borrower nor the lender took any (serious) action, it shows that neither of them were serious about the matter from the beginning. The application now, after more than a year, has become useless - as every material aspect of it would have changed, it is better to make fresh application and follow it up seriously for a concrete outcome within reasonable time.

Answer 3

I can go to other branch of same bank, to another bank, to other financial institution, to Court, to private financer, to other consultant. Submit fresh application with lastest infor.

Answer 4

Re-apply. The application could have been misplaced.