[Resolved] ICICI - Home Loan — Switch over Home loan for existing ICICI customers | |
Hi Everybody, This is DEEPAK from Chennai. I had taken a home loan for 14 Lakhs in 2005 @ 7% floating rate. Now i am repaying it at 13.5% rate of interest. Whenever RBI had increased the PLR by 0.5%, ICICI would in turn increase the same by 1%. The same happened thrice within a period of 7 months. Now when the RBI is reducing the PLR, ICICI is totally silent about the existing home loan customers. It so happened on April 06, 2009, where i saw that ICICI is offering a switchover for the existing ICICI home loan customers, to a new interest rate of 9.75%. This news was telecasted in CNN-IBM. The details of the same are given in the link below in moneycontrol site. http://wealth.moneycontrol.com/features/home-loans/rate-war-icici-drops-home-loan-rates-for-existing-customers-/12762/0 My first thought seeing this is why is such a discrimination made by ICICI between new and existing customers. Also with regard to switching fee, other banks are doing the same for switching from "fixed " to floating" and vice-versa. Why this bank is charging to switch between floating rates itself is my only concern. Leaving my thoughts apart, i just stepped into the Adyar home loan branch in Chennai for enquiring the procedure. I was shocked by their reply. What they told me was the offer was given only for walk-in customers (not updated in ICICI website) and it got over on March 31, 2009. Currently the same offer is provided with a switchover fee @ 1.75% of loan amount. This clearly shows the level of consideration for existing customers. Also when i asked what if the rates fall further, i got a reply that again i need to pay a switching fee for that outstanding principal. I got totally perturbed by their answers. So i thought of mailing the same to "Senior Management" of ICICI (senior.[protected]@icicibank.com). The reply from their side had disappointed me to the core. They replied me saying "Dear Mr.Kasturi, We refer to our e-mail dated April 9, 2009 regarding your query related to Home Loan account LBCHE[protected]. We would like to inform you that we are not offering such a scheme. Rate of Interest applicable to your home loan are subject to change only upon change in Floating reference rate / Prime Lending Rate . It would be pertinent to mention here that the Bank has reduced the FRR from 14.25% to 13.75% resulting in a reduction of 0.5% in the rate of interest for floating rate loans. The same was effected in your loan account from January 09 EMI onwards. Any change in the interest rate is communicated to our customers through any of the following medium: a. Direct mailers to customer b. Notices at our branches c. Website We assure you that the bank has always had the customers interest in mind while effecting any change and would continue to do so in the future too. Sincerely, Chandrika NaiduManager - Service Quality" So my humble request from existing customers is to join our hands and fight for our rights. If anybody interested please reply me back to [protected]@yahoo.com. If required i am planning to file a suit in consumer court as well. It is ridiculous to see a bank chating customers and RBI having no control over the same. Regards Deepak +91-[protected] Was this information helpful? | |
Aug 13, 2020 Complaint marked as Resolved | |
 14 Comments | |
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Dear Mr. deepak,
I'm also having the same problem from the ICICI bank. I got the same reply when I visited the branch for change in interest rate, they charge 1.75% for conversion.
When I send a mail to the ICICI customer care I got the same reply which senior management have given to you.
Please let me know how we can fight againt this loot. my mail id is sureshverma.[protected]@gmail.com.
Regards,
Suresh
I'm also having the same problem from the ICICI bank. I got the same reply when I visited the branch for change in interest rate, they charge 1.75% for conversion.
When I send a mail to the ICICI customer care I got the same reply which senior management have given to you.
Please let me know how we can fight againt this loot. my mail id is sureshverma.[protected]@gmail.com.
Regards,
Suresh
Yes, I too had the same experience. It was a poor response from the Bank. No respect for the existing customers. I do not know how the new customers are going to believe the bank anymore!
I talk to SBI about switching over. As per their norms, they wanted to see Original documents but said that ICICI has never cooperated and has never given/shown the original documents for verification purpose. So, SBI said they are hesitating to take over the loan from ICICI as the cooperation is poor. I have not yet approached the ICICI regarding this as I am not sure whether my loan processing fee will go waste. I also heard that Bank has no right in denying the request to show the original documents. I will have to find that out. Any information on this???
I talk to SBI about switching over. As per their norms, they wanted to see Original documents but said that ICICI has never cooperated and has never given/shown the original documents for verification purpose. So, SBI said they are hesitating to take over the loan from ICICI as the cooperation is poor. I have not yet approached the ICICI regarding this as I am not sure whether my loan processing fee will go waste. I also heard that Bank has no right in denying the request to show the original documents. I will have to find that out. Any information on this???
Please confirm the nearest branch icici home loan near shiprasuncity indirapuram gaziabad.
Dear Deepak,
I am exactly in the same situation as you are . I started my loan at the rate of 7%. And after thier first rate cut in Jan'09, i am paying 12.50. When inquired at the bank for a part pre-pay they also mentioned about switch over facility after paying a switchover charge of 1.75.
Technically they are saying that my Variance will be increased to accomodate it to 9.75 percent. And the variance will remain stable for the remainig tenure. So as my variance as of today is 1.25 from the PLR of 13.75. Hence am paying my existing EMI @ 12.50. Once i pay thier blackmailing fee of 1.75 my variance will increase to 3.75. Which will be stable for the rest of the tenure. It also means that any future reduction will have to be automatically passed on to my EMI's.
I am trying to ascertain that in writing. so that i may not be cheated again by ICICI.
I am passing this info if it may come hany to u.
I am exactly in the same situation as you are . I started my loan at the rate of 7%. And after thier first rate cut in Jan'09, i am paying 12.50. When inquired at the bank for a part pre-pay they also mentioned about switch over facility after paying a switchover charge of 1.75.
Technically they are saying that my Variance will be increased to accomodate it to 9.75 percent. And the variance will remain stable for the remainig tenure. So as my variance as of today is 1.25 from the PLR of 13.75. Hence am paying my existing EMI @ 12.50. Once i pay thier blackmailing fee of 1.75 my variance will increase to 3.75. Which will be stable for the rest of the tenure. It also means that any future reduction will have to be automatically passed on to my EMI's.
I am trying to ascertain that in writing. so that i may not be cheated again by ICICI.
I am passing this info if it may come hany to u.
Lets start boycotting ICICI. Please stop dealing with ICICI and stop buying any product from the bank and its subsidiaries.
Our Banking guidlines our one of the least transparent and completly favouring the institutions like builders and banks. The only way we can bring down the institutions by stopping to deal with them bring them down to bankruptacy. Today's bank and RBI regulations have not made these banks any differnt from the age old zamindars of the olden era. Where the generations keep on paying the interest while the principal never gets settled.
Lets become a force, becoz our governments does not listen otherwise...
Our Banking guidlines our one of the least transparent and completly favouring the institutions like builders and banks. The only way we can bring down the institutions by stopping to deal with them bring them down to bankruptacy. Today's bank and RBI regulations have not made these banks any differnt from the age old zamindars of the olden era. Where the generations keep on paying the interest while the principal never gets settled.
Lets become a force, becoz our governments does not listen otherwise...
I am also facing the same problem. My email id is [protected]@yahoo.com, please let me know how to fight against this.
My home loan account no. LBALD[protected] Kindly arrange to transmit me at my email ID the last financial year 2008-09 premium paid statement to submit my income tax return please.last dt is 31 july, 09.
hello freinds
I think we all are facing same problem, i.e. while increasing the rate ICICI bank increases the PLR as per RBI guidlines + some extra however when RBI reduces the landing Rate ICICI bank changes the "spread" or variance which reduced from the PLR to give effective rate of interest.
This benefits only for the new customers but cheats the old one as the PLR is not changed or changed only by 0.25 %
while the switch over charges are 1.75% + 12.5 % service tax comes to 1.93 %, u need to take an insurance cover of 5 years by paying almost Rs. 80000
This is fraud and RBI intervation is needed to control gap between the PLR's and effective interest rates.
I think we all are facing same problem, i.e. while increasing the rate ICICI bank increases the PLR as per RBI guidlines + some extra however when RBI reduces the landing Rate ICICI bank changes the "spread" or variance which reduced from the PLR to give effective rate of interest.
This benefits only for the new customers but cheats the old one as the PLR is not changed or changed only by 0.25 %
while the switch over charges are 1.75% + 12.5 % service tax comes to 1.93 %, u need to take an insurance cover of 5 years by paying almost Rs. 80000
This is fraud and RBI intervation is needed to control gap between the PLR's and effective interest rates.
Please send me through mail 'PROVISIONAL STATEMENT FOR CLAIMING DEDUCTIONS UNDER SECTIONS 24 (b) & 80C (2) (xviii) OF THE INCOME TAX ACT, 1961 for the year[protected] &[protected] &[protected] also for IT benificials. My Home loan A/C. No. LBABD[protected]. This is very urgent for me.
If any doubt pl. revert back.
Awaiting your reply.
Thanks & Regards,
DSPARMAR
Email -dhanji.[protected]@sanghicement.com
If any doubt pl. revert back.
Awaiting your reply.
Thanks & Regards,
DSPARMAR
Email -dhanji.[protected]@sanghicement.com
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Infact I also visited the same branch today (16.04.09). I was really irritated with the reply provided by the Customer Service Executives. It was really pathetic to comment that their reply is nothing but a recorded vice rather than providing solution. In fact ICICI has a system of Senting SMS for DUE DATE's etc. But when it comes to Benefits to Customers the SMS system is not working.
My humble request to ICICI is that when they are willing to offer beneficial schemes, please ensure that it reaches to all their customers.
Thanks and Regards
Maruthy ([protected])