Is Reliance offering 10-year interest-free loan for buying insurance?

Customers have got fraudulent calls offering a Rs10 lakh interest-free loan from Reliance Capital when you buy Reliance Life Money Multiplier policy of Rs1 lakh premium

Fraudulent callers from Reliance Life are offering Reliance Capital’s interest-free loan of Rs10 lakh for 10 years if you pay a yearly premium of Rs1 lakh for its Money Multiplier insurance product. You may wonder how Reliance Life can make such a fantastic offer without any collateral. After all, you can just vanish after getting the loan and not pay the remaining nine premiums. Before you plan to get away after quick riches, the truth is that the dubious callers will disappear without giving you any loan once they stick you with an insurance policy of a trivial value.

Moneylife has spoken with these shady characters few times on the phone (011-65981239/011-65695595). The callers guided us to page nine of the Money Multiplier brochure. It says that the loan works out to 80% of the surrender value. Anyone familiar with the surrender value knows that it is usually pathetic and paying just one premium means the surrender value is zero. The caller is looking for a gullible person to take for a ride. The pitch is, “Reliance Capital interprets surrender value as maturity value of the product”. This is the crux of deceit and if you bite the bait, you will be lured into making a dud investment.

The caller promises that the Money Multiplier policy will give guaranteed Rs22 lakh on maturity after 10 years, but only Rs1.2 lakh will be returned to policyholder. It justifies what the brochure mentions about loan given at 9% p.a. interest rate. It signifies that Reliance Capital makes money on the loan. The justification for loan is that “to be on safer side for Reliance Capital, it is offering a loan of nearly 50% instead of 80% of the maturity value”. The caller says that the policy bond will be kept as collateral with Reliance Capital. It is to create an impression that the policy bond is of significant value even though it is worthless if you end up paying just one premium.

The callers, who are based in New Delhi and give their address as 13th floor, Lalit Towers, Connaught Place, seem to have answers to all the doubts. They assure that the Reliance Capital loan will be processed within one month of the policy issuance. To make you comfortable they offer a 45-day free-look period even though page ten of the brochure clearly states that there will be only a 15 day free-look period. It’s just fraudulent sales tactics to offer something more than what the brochure clearly states.

If you still wonder what action they will take in case you disappear after getting the loan, their quick reply is to bring Insurance Regulatory and Development Authority (IRDA) into the picture by claiming that IRDA’s recovery department will help in case the policyholder does not pay after first premium!

In reality, IRDA does not have any recovery department. The callers say that your credit score will be affected and any future loan will be difficult as the RBI (Reserve Bank of India) will also be reported. They claim that Reliance Capital does not have to worry about it. They are correct with their assessment. Reliance Capital is free of any liability because it does not give you the loan promised by these ludicrous callers.

It is time IRDA gets tough with these fraud calls. There are susceptible customers who fall prey with brand names of big corporates. Will they get justice?

Here is Reliance Life’s official reply:

The instances of “offering Rs10 lakh insurance loan from Reliance Capital offers” are made by spurious callers, a menace faced by the industry, and not part of any mis-selling. The industry has sought help from the EOW and we, as Reliance, have also filed over 170 FIRs against these spurious callers - wherever the customer/victim/complainant has agreed to help us. Please share all the numbers that you have, with a written formal complaint (which is needed to lodge FIRs), to us so that our legal teams can lodge relevant FIRs against these spurious callers. A formal complaint, giving details of the complainant, is mandatory for filing FIRs. Please also inform your readers about the same and guide them that they can write to us at "[email protected]”, in case they get any such false offers.

In the second part, we will give a specific case of someone who actually purchased Reliance Life Money Multiplier with the expectation of getting a loan. Watch out for the story tomorrow.

You may also want to read:
Reliance Life ULIP mis-selling: Justice served

Life insurance: Don’t fall for assured returns, look for comprehensive cover and avoid dubious agents who promise you fantastic combination plans

Are your insurance details all in the public?

11 months ago
+919319380865 I got call from this Amit from reliance life insurance plan loan against policy wonderful plan - pay premium of 30k per year and get around 3L loan . Shame on Reliance insurance department why they do not teach the their employees ethics and morals ...
Or they are directly doing so.
1 year ago
I have also got same call yesterday.. They told me for 05 Lakhs loan...
1 year ago
Any one got money from these fraud callers. Mere saath bhi fraud ho gaya hai
Anugula Vasu Kumar
2 years ago
Please help me
Mere sath bhi hua hai
2 years ago
011 35304874, 8505829669 Vishal Singh offering citi bank loan against insurance upto 10 Lakh
2 years ago
o got the call at .1.10 pm from 8586095410, 7303617069 Vivek bhai ne abni id b beji hai Frm Reliance capital bataya hai telling u ll get loan of 10 lakhs with 0% interest just buy a policy and pay 50000 now
2 years ago
Hi Guy,
Also got the similar fraudulent call from a guy claiming himself from Bajaj Finserve.
Offering me to a 0% interest loan based on life insurance policy.
Call From: Vishal Gupta(7827976624,+9111-47591264).

When i asked for provide me offer/load product id which should be somewhere mentioned in Bajaj portal, or email me valid offer detail (as a proof to make sue they are from Bajaj ). but they unable to do that.

They are frauds , beware!!!

2 years ago
Today (31st Aug 2020) i received the call from 09311982266 & offered me 20L loan, to get loan i need to purchase the 1L Policy.
3 years ago
I got similar calls since last 5 days. I was about to pay for it, thankfully I asked them for written mail confirmation which they said will consult and send.
Replied to chiragsinghi80 comment 3 years ago
I also got similar calls since last 3 days.... thank God bach gaya.....
3 years ago
monish shah
3 years ago
Mere sath bhi hua hai plz help
monish shah
Replied to monish shah comment 3 years ago
Co no 8200862879
rajesh arora
3 years ago
Reliance capital company chor hai in logo ne mere 2.60k rupye kha gaye hai plz meri help karo 9953373963 ye unka nmbr hai akash naam hai iska
Plz meri help karo 8750412595 ye mera nmbr hai inke baare me kuch bhi pata lage to mere nmbr par call kare
amol patil
3 years ago

Please do not respond to them. These are just fraudulent callers.
They are looting the money from you.
Nothing is free in the world. Everything has a interest associated.

I also have the same experience with Bajaj finserv. I have got a call from number 9049586320. They will ask you for the documents and once you send it within hour caller will tell you that your loan amount is sanction. Once you tell them to proceed further they will send you fake policy letter. And then you will purchase the policy.. After that ........ Caller number not reachable or switched off.......
rajesh arora
3 years ago
Reliance capital company chor hai in logo ne mere 2.60k rupye kha gaye hai plz meri help karo 9953373963 ye unka nmbr hai akash naam hai iska
Plz meri help karo 8750412595 ye mera nmbr hai inke baare me kuch bhi pata lage to mere nmbr par call kare
rajesh arora
3 years ago
Reliance capital company chor hai plz meri help karo in logo ne mere 2.60k rupye kha gaye hai plz meri help karo
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