[Resolved]  ICICI Home Finance — ICICI home loan malpractice


This is an attempt to rescue all future home loan borrowers from refraining to apply loans from ICICI. Please read on and you will understand why.

I applied for home loan with ICICI under their floating rate scheme. Floating rate means rate will fluctuate depending on RBI's rate change policy. Well for ICICI floating means only upward revision. I received a rate of 7.5% in Jan 2005. That was increased to 13.5% as of Jul 2008. Acceptable because RBI kept on increasing the CRR and the Repo rates. In the past 2-3 months RBI has reduced the CRR and Repo rates by around 3-4%. Every PSU banks including some Pvt banks like HDFC bank announced a reduction in their PLR for existing customers. But ICICI has not reduced the rate for its existing customers at all. Instead I was shocked to hear that ICICI offered a lower rates for new customers but not existing customers. When I asked ICICI bank about this they plainly said that there is no downward revision in the rates. When I showed a TOI article about this rate cut for new customers this is what they wrote me

1. We would like to inform you that, you can decrease your Home Loan rate of interest by paying the conversion charges.
2. Process to convert from Floating to Floating Rate of Interest:

You can convert your Rate of Interest from Floating Rate to Floating rate of interest..

What we are offering to you is the additional benefit, where you can reduce your rate of interest Floating to Floating.

According to the confirmation from the department concerned, regarding the conversion of Rate of Interest, the applicable fee is Rs.0.5% on the outstanding principal plus a service tax of 12.36% on the same.

However the Conversion Charges are subject to the changes according to the Bank's discretion.

So now to avail the benefit of a lower interest rate I now have to pay a conversion charge where as this should have been my right under floating rate. Please check the following websites where people like me have expressed similar frustration.

Also read my personal review on ICICI Home finance[protected].html

Can anything be done against this?

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Aug 14, 2020
Complaint marked as Resolved 
Complaint comments 


The ICICI is never going to reduce the loan rates for existing customers. They are the biggest cheat in the country. KV Kamath, the ICICI head and CII president is the number one crook...he speaks in the public that banker should reduce the interest rates, but his bank never reduce rates. There cheap strategy is to give loan at low rates to new cutomers and increase thereafter immediately after some months. They are openly cheating the customers of India. This is really pathetic that both RBI and Govt does not take action against there crook activities. The best think is all the customer of ICICI should protest aginst the bank in the front of RBI building, this will force the RBI to hear the ICICI customer problem and media will also get active. All the ICICI Home Loan Customers should transfer there loans to public sector banks. I know the ICICI create problems if someone tries to transfer there loans to other banks.

Everytime ICICI management says, we are watching the liquidity situation and will review the rates later on and then they never reduce the rates. This is just to divert the attention of the customers and the media. Irony, is that the KV Kamath says different thing and Chanda Kochar says opposite of that. This is because KV Kamath is the head of CII, he always says good thing but never delivers that. Funny part is he is saying banks should reduce rates, but his ICICI is not reducing the rates. I dont understand, why the cost of funds are not coming down for these private banks despite huge Repo Rate and CRR cuts by the RBI. They are just fooling everyone and earning huge interest income by not reducing the interest rates.

ICICI Lombard — Service tax are charged at higher rate

Dear Sir,

I have purchased a motor car policy on 26th February 09 from ICICI Lombard service tax charged on it is @ 12.36% where as, as per government notification the service taxes rates are revised wef 24th February 09 @ 10.30 %. Hence ICICI has take 2% extra service tax.

Request you to please look into this matter & help out.

Nikhil Kshirsagar

I had 03 loans form ICICI out of which 02 loans bearing no LBDEH[protected] & LBDEH[protected] had been paid completely but one loan amonting Rs 53384/- Agreement no LBDEH[protected] is still outstanding. This loan of Rs 53384 was disbursed to me for ICICI Lombard (.i.e. for Insurance of property). Now few month back I requested for cancellation of Lombard policy in response to which i was told by customer care of Lombard that they were paid only Rs 12605/- for insurance of property and that policy has been cancelled and against this cancellation Rs 6346 had been refunded and they are not aware of rest of loan amount i.e. 40779/- and inspite of cancellation of policy EMI is still being recovered from my saving account at ICICI bearing No[protected]. Kindly look into the matter and the balance amount i.e. Rs 40779/- be get deposited into my account to clear the outstanding loan.
My husband had taken lone from ICICI home finance at 1 march 2005.This lone agreement paper shown the free accidental claim policy but not give any policy document or policy no till date . Now my husband expired in an accident at 14 sep 09 .So I intimate the claim at 16 nov and your department received claim form and required document at 28 nov but they demand the policy document for settlement of lone so plz send me.

LONE NO LBBAR[protected] CLAIM NO 15100974 Shanti devi wo Let hotam singh
madhuvan colony civil lines badaun
phone no [protected]
Dear sir,
With ref.of my[protected],
I got sanction on 24/8/09 loan of rs, 12, 85, 292 but i was totally misguided and cheated by your sales manager, Ajay menon, AHMEDABAD(FR.CODE-I-BANK)at the time of disbursement he told that ICICI-HFC has stopped disbursement and all files are shifting to icici bank, so again you have to go with entire process.Latter he stated that you can not get the loan by icici bank.
Now i want my admin.fee.Rs.7089 retyrn back, otherwise i am in process to move CONSUMER COURT AS WELL AS POLICE F.I.R against ICICI-HFC.
looking forward for your imdt.action.
Thanking you.
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