[Resolved]  ICICI Home Loan — Unfair Practices Floating Rate of Interest by Banks

I have taken home loan (A/C No : LBNOD[protected]) from ICICI bank on Floating Rate of Interest. The Bank gave me loan on 7.5% Floating ROI in Mar 2006. The ROI calculation shown to me is (FRR (9.25) - Discount (1.75) = Floating ROI (7.5)).

After 3-4 days, my friend(works in same company) took the home loan from ICICI bank for same type of developer flat and he got Floating ROI of 7.5% (FRR(9.75) – Discount (2.25) = Floating ROI(7.5)).

After that I complained several times to understand this unfair practise of Floating Rate. The Bank representative only talks about FRR and don’t want to talk regarding discount component. However it has two components to control the customer Floating rate of interest. First one is FRR(which has some kind of transparent process) and second component is Discount(which is entirely controlled by Bank. No transparency).

Now bank is giving home loan of Floating Rate of Interest of 9.75% and calculation is FRR(13.75) – Discount(4.00) = Floating ROI(9.75).

I would like to know on what basis Discount of 4% given to new customer and is this factor also depends upon time then what is the meaning of FRR.

If the bank has fund to give loan on 9.75% then why FRR has been kept on 13.75 to cheat old customer.
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Aug 14, 2020
Complaint marked as Resolved 
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Why RBI is not looking into this unfair practise. All consumer should start raising the Issue with RBI.

Even media company are not helping in raising the issue. Seems Even media company don't have any interest in real public comman problem.
Hi

Even to me ICICI is still charging 13.5% interest rate for home loan which is around 3% higher than any other banks at this moment. When there is increase in rate they do it every month infact twice a month. For dicreasing rate they say it is on quarterly basis. They are literally cheating customers, if i ask any thing simple reply it is what our bank rules go to hell. Please dont go to ICICI bank based on their initial gimmicks of attractive discounts, once we take loan they immediately increase the rate.

Nationliased banks are better which has good control in handling interest rates.

Thanks
Giridhar
I tottaly agrees with you. Same case with me. I have taken loan two years back when market rate was 11.25%.
After two year i was happy to see that my EMI reduced, Later on i come to konw that they increased my tenure by 14 months... Even though market rates droped now to 9.75% but i am still paying 11.25%!!!
Smart way to cheat customer. We need to takeup this issue to media. Lets starts getting together gents, and given one big punch to cheater bank ICICI.
After a long debate with bank manager, unofficially she agreed that bank is cheating customer and gave personal advice to approch other bank. But i need to shell out huge amount to come out of this trap... god save me.
Please drop me an email if you have same issue. We will take up this issue with RBI or Media.
Arun Shetty

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