[Resolved] ICICI Home Loan — Not reducing interest rates on home loan

[Resolved] ICICI Home Loan — Not reducing interest rates on home loan

M MANISH RAWAT from Ajmer, Rajasthan

Business Daily from THE HINDU group of publications Tuesday, Oct 21, 2008 Reserve Bank cuts repo rate to ease credit squeeze Some banks such as Union Bank, Corporation Bank and Punjab National Bank have already lowered rates on new home and auto loans. http://www.thehindubusinessline.com/2008/10/21/stories/[protected].htm Indian Reserve Bank (RBI) cuts repo rate by 100 bps to 8% by Bill Belew on October 20th, 2008 http://www.panasianbiz.com/2008/10/indian-reserve-bank-rbi-cuts-repo-rate-by-100...⇄ On October 20, 2008, the Reserve Bank announced a reduction in the repo rate under the Liquidity Adjustment Facility (LAF) by 100 basis points from 9.0 to 8.0 per cent. http://www.banknetindia.com/banking/measurenov08.htm Reserve Bank of India Cuts Repo Rate by: Equitymaster October 20, 2008 http://seekingalpha.com/article/100685-reserve-bank-of-india-cuts-repo-rate Reserve Bank Reduces Repo Rate by 1 percent from 9 to 8 percent • Author: admin • Filed under: Bank, Interest Rates • Date: Oct 20, 2008 Reserve Bank on a sudden move reduced the Repo rate today by 100 basis points or 1 percent from 9 to 8 percsnt . http://www.rupya.com/archives/2008/10/20/reserve-bank-reduces-repo-rate-by-1-per...⇄ TO WHOM IT MAY CONCERN I and some of my friends and relatives have taken home loans from ICICI bank and an impeccable repayment track record we have for EMIs all the times. Recently, RBI has introduced lot of liquidity in the market by reducing CRR considerably. RBI has also reduced repo rate as per the above mentioned NEWS highlights on several websites, which lowers cost of funds for the banks. Due to these measures from RBI, many public sector banks have reduced home loan floating interest rates. But ICICI has not reduced home loan rates yet. Our question is why? When RBI increases CRR or repo rate even by 50 basis points, all the banks increase the interest rates immediately. Likewise ICICI has increased its rate of interest home loan with effect from July 1, 2008 and further increased the same from October 1, 2008 even without informing us. Why is ICICI not reducing the rates now? This is not good ... we home loan customers are not getting our legitimate right of market based floating interest rates irrespective of being a best payer as well as a pretty business giver to ICICI. We are remarkably disappointed by this leisurely approach of ICICI with its customers like us. In the present circumstances nothing stops us as consumers to think for taking proactive steps and to shift our business to a competitor bank by switching over the existing home loans. ICICI have a very strange policy to reward its loyal customers with higher rate of interest and to attract new customers with lower interest. Can they explain why they have this policy or they are taking an illegitimate advantage of their loyal customers? By any logic it can be justified? We humbly request to the monitoring authorities to take a rational & reasonable action against the aforesaid matter. Thanks with best regards!! Was this information helpful? No (0) Yes (0)
Aug 14, 2020 Complaint marked as Resolved
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Comments

Srinivasa rao suru

from Bengaluru, Karnataka

Dear Sir

I am victim of ICICI Bank, as i was caught up with my home loan with them.

When the RBI increased the CRR or repo rate even by 50 basis points, ICICI Bank is the front runner in increasing in FRR (Floating reference rate) and increased rates by 75 basis points twice during July to sept 08.

To increase the liquidity and reduce the interest impact, RBI has taken several measures thereafter to suit to the global market. following most of the banks have cut the rates including private banks like HDFC etc. But ICICI Bank has not at all reduced the rates til now, though increased it by 150 basis points earlier.

I am a genuine customer with track record of EMI repayment without a single default. according to my info, ICICI is getting new customers by reducing the rates like FRR less certain points (spread), but i remained with high interest rate. I really do not know the reason for this type of injustice. It is really unfair.

If they (ICICI Bank) wants to make good the losses of their businesses such as sub-prime exposure loss or whatever, by this discriminating Home loan rates even from genuine customer like us, i urge you to intervene and do the justice.

I request you to do the needful.

Thanking you

S Srinivasa rao

Suneel Jain

from Gurgaon, Haryana

Yes, i agree with Admin adn Mr. Rao

I have same problem with ICICI bank and their policy is not fair...

regards,
Suneel Jain

V.P. SHUKLA

from Mumbai, Maharashtra

Same problem-- strangely, the bank is behaving in unprofessional way despite having good reputation.

PavanKumar

from Chennai, Tamil Nadu

Even HDFC decreased the interest rate for both existing and new customer. Till date ICICI did not come up with the interest rates.

Very disappointing...

John Masih

from Mumbai, Maharashtra

I took a loan from ICICI bank in May 2006 at the rate of 9.5% floating ROI. They kept on increasing the ROI and today as the floating ROI's have been down, I am still paying at 13.5%. This was increased when other banks were lowering down interest rates. I asked them for a foreclosure and now they have charged me 2.25% for the foreclosure + 12.36% service tax on foreclosure statements. I have had a wonderful track record with them. I asked for a xerox of my documents with them and they have sending them to me correctly. I have been having trouble with them and every time I complained to them they have just been hiking interest rates. I have already spoken to a lot of people in this regard. I have lost faith in ICICI bank. They have betrayed my trust.

Harpreet Arora

from Bengaluru, Karnataka

ICICI bank is now making a deal with the existing customers. They are saying that if you pay 0.5% of outstanding principal, they'll reduce the interest rate by 2%. Isnt this open fraud anc cheating? Did they pay us 0.5% when they increased the floating rate? Worst, they dont even show the FPLR value on their website anymore.

I also want to file a case against this bank. In the very least, we should start a campaing (email/sms) against this bank and ensure this reaches as many people as possible.

If you are looking to switch, I would recommend SBI bank. Their floating rate has been very well tracking the RBI rate. If your loan amount is less than 20 lacs, you might get the loan for 9.25%. The only catch is that the switch over process has a few hassles. But I the switch over is worth the effort. If you dont want the hassles, try HDFC bank. They are much better than ICICI bank.

If anyone knows of someone filing a case against ICICI bank, please post it here, so that more people can be a part of that fight against this fraud and cheat bank.

UmESH LOTLIKAR

from Pune, Maharashtra

ICICI is looting its customers who will soon move to PSU banks.
ICICI wants to recover loss made by it's shabby management of funds fro us customers.

Abbas

from Bengaluru, Karnataka

Dear All

I am also facing similar situation with ICICI bank, i want to go against them on putting a case in consumern court.

Rgds
Abbas

ashish

from Surat, Gujarat

One should use RTI to find out which bank leads in the number of complaints that has been made by ICICI customers and what is the difference between its closest competitors.

Its evident that ICICI is following unfair practices (not legally wrong) though, and RBI is shirking away from its responsibility of being a government body to ensure protection of consumers.

KV Kamat has lot of political cloud and this is helping me to get along

OP Singh

from New Delhi, Delhi

I was also a ICICI home loan customer and was paying 14.25% interest, but due to harassing attitute of ICICI I switched over to Bank of Baroda where floating interest rate is 8.5%.

Rizwan

from Chennai, Tamil Nadu

Hi Guys,

I have decided to launch a complaint in the consumer court against ICICI bank.Against hjgh interest rate being charged to most of the customers. Not Lowering the PLR and deliberately keeping it high. And charging the customer's 0.50% to lower the rate of interest. I have already visited the consumer court in bandra and they have advised me If i have more examples of people with th same complain it will help all of them and ICICI bank will not be able to charge the 2.25% foreclosure charge.What I need from you guys. is 1) Your Home Loan account number . 2 ) Your complain. ( high interest rate, Foreclosure charges.) 3) Your Contact number and Email ID . Spend A few minutes of your time and send this information to my email address [protected]@gmail.com . Hopefully this will help everyone out

Subrata Kumar Baliarsingh

I agree with all of you. Infact, ICICI Bank is discriminating two customers in two different ways.

1. On the existing customers- the floating interest rate is 11.75%
2. For new loan, strangely the interest rate is 9.25%

So the new customer will be lured to avail Home Loan at 9.25% without thinking for while that he is being lured to a virtual trap after 2/3 years.

It is unfortunate that Ministry of Finance, RBI and Management of ICICI Bank is apathetic to concern of various customers. Somebody has rightly pointed out that management of ICICI Bank enjoys favour from Politicians and hence there is no Government regulation to protect the interest of customers.

Still we have faith in Indian Judiciary.

jibu

from Noida, Uttar Pradesh

I agree with you. But legally they may be right because u and me never had time to read all the documents that we signed as loan agrement. They are surviveing because costumers are still not awaire. To tell you the truth Sales exicutive siged on myloan documents because that had thier targets, they followed me to my house promised me many this (verbally not in writing) and and have disappered. This is above all moral corruption like old time sahukars and money lenders who cheeted poor villagers of all their pocession.