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[Resolved]  ICICI Home Loan — Floating rate - cheating indians

In the case of State Bank of India Vs Usha Vaid & Anr the National Consumer Disputes Redressal Commission termed prepayment penalty for home loan as unfair and restrictive trade practices. The Commission asked the bank to refund the pre-payment charges collected from Vaid, who had shifted her loan to another bank. It upheld that Consumers’ right to avail loans at lesser rate of interest can’t be curtailed by such prepayment clauses. SBI SLP (Civil) 16345 of 2007 against the Commission order in the Supreme Court has been dismissed vide SC order dated 19.09.2008.


If you are dissatisfied with the bank, to register your complaint with ICICI:
In Google search for ICICI complaint form. Click on the 1st result of ICICI site. Then go to "Click here for online submission of your grievance."

One good suggestion from Vinod Somani:
Start sending your emails on the following 2 ids:

Ask them for answers. They will not answer your answer your questions. Rather they will use copy-paste of the standard matter. But do not worry. Send them 20-30 emails. Document all of these responses and then file a suite against ICICI in the consumer court and not with RBI. You will not lose the case. These responses will help you win the case against ICICI for the waiver of foreclosure charges. Then transfer your loan at alomost 3% lower rates to some PSU bank, without any foreclosure charges. By transferring, you will save almost 1 lac rupees every year for a loan of 26 lacs (20 years).

A few things which you can write when they write back to you ...

What is this prevailing economic scenario in the country? Is it different for other Indian Banks (most of those)? If no, then why did you increase the rate in June'08 July'08 timeframe. Even there was no CRR hike (which used to be your favourite excuse earlier). Rather the CRR has been cut by 350 bps. On one hand CRR is cut by such a huge margin and on the contrary ICICI has increased the rate during this period.
Complaint marked as Resolved Aug 14, 2020
Complaint comments  35 Comments     Updated: ShareTweet


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. Please hhhhhhhhheeeeeeeeeeeeeelllppp me out
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.
I completely agree with all. ICICI is a bloody fraud out to cheat customers--especially those on existing floating loan rates. This is bigger than a corporate governance case---total disregard for the customer and public at large. I too am starting my loan transfer procedure from next week.
I am also a victom of this bank ICICI home loan
i am paying loan at the rate of 3yrs they increased the rate from 7.5 to 13%..and they never seems to reduce the interest rates, though my loan amount is very less, but still it stretched to 391months, thats bloody freak, i am thinking of foreclosing it but i am not aware of the foreclosing charges.
I agree with all the problems here.
Even i am a sufferer of ICICI Home loan. They offered my loan @ 9.5% floating (2 years back), and slowly hiked it to 13.5%.. And they don't seem to be reducing the rates at all. I enquired at all banks including ICICI, (for new customers), the rate is around 9%. This is open cheating. My EMI has been hiked and my loan tenure has been almost doubled! This is total customer disregard from ICICI bank. Even I am planning to move out my loan to some other bank. Lets start a movement, Lets all get together and move all the ICICI home loans out from the ICICI to some other bank. These guys must learn a lesson for treating customers badly. Also please advice to all your friends to not take loans from ICICI. Forward this link to as many people, so that people don't get cheated by these guys.
Please read and post your comments on ICICI Bank HFC on We should invite our friends and every one we know to read and be aware of ICICI bank and not have even one person go to ICICI even for a deposit.[protected].html
I fully agree with you Mr.Somani, and thanks for letting know how to complain on relevant id.
It's really frustrating that eitherway you are a loser, even when you shift your loan to another bank or do not shift.Everyone affected must raise a voice against this.
is there possibility that we can ask the ICICI bank uder the right of information act that why there rate is higher than others.
They will offcourse say that its because of services, but we can find plenty of cases of non services and prove that its wrong.
my request No is SR 91501673. Loan Account No is LBJAI[protected]. I have not received sanction letter till date. i am being harrassed by bank employes. they are not supporting me . I want to know when i am going to receive my sanction letter.

They are saying that it will come through swift courier. please cooperate with us
Is it possible that one o[censored]S lodges a complaint against the Bank with the consumer courts and also coaxes the media to carry articles of this out and out cheating. I am willing to contribute my resources in terms of time and money. This is a true case of might is right.. in this country the policy and respite are only for the vote banks but not for the majority of tax paying Indians.
Where are all the regulatory bodies and the RBI.. they are all hand in gloves with the bank
I agree with all of you, problems with ICICI bank Home loan. I have same experiance, took tahe loan 2 years back for 9%, after that they are increasing the interest rates frequantly and it is reached to highest level. When ever RBI reduced the rates, all other banks reduced same way, but these bloody idiotes not decreased like RBI. They are following their own rules. If they wants to reduce the rates, we need to give some amount(Bribe), then they will reduce it. I am transfering the loan to other banks. Even if i pay the 2% also, i can get the very cheaper loans with other banks. Why media and RBI is not focusing on these pointes.
I also share the same feeling. I am thinking of transferring the loan.
A lot many thanks to all those who have posted messages on this board. Particularly to those who have given this suggestion to write emails to Kamath and Senior Management. I had a housing loan from ICICI. I foreclosed the loan, but I was slapped a foreclosure charge of 31000/-. When I wrote emails to the above mentioned mail ids, my money was refunded.
This is the substandard way of doing business.I dont think ICICI can stand with customer for long time.
I'm an existing customer of ICICI bank home loan for the last 2 years and am waiting for reduction in rates by ICICI. Over the last 6 months, when other private banks like HDFC reduced the rates twice to 1% to 1.5% less, the great bank of India reduced the loan only once by .5%. Due to previous increases, the loan tenures go upto 40 years (this happened in my case) and reduction has reduced the tenure to 25 years now. Whenever the lending rates increase, the bank sends out communication immediately and will increase the payment from next month. However, this is not the same case while reducing the rates.

Apart from this, the bank does not even send yearly tax statements to customers who have been paying their EMIs on time

Can somebody from the bank management do something about this? This is high time that the bank responds to millions of people who are being fleeced by the bank.
I am also an old home loan customer of ICICI bank. I have a created an online petition against ICICI Bank. Please sign this petition so that we can pass strong message to them. Hopefully this will bring a change.
Could anyone find or knows the citation of the National Consumer Protection case in any law report/journal reporting consumer protection cases? That information is vital.
The text of the order can then be shared for the benefit of all such consumers.
I took the home loan for Rs.16lacs for 240 months from ICICI Bank @ 9.75% in 2003. My EMI was 15177/-, they increased my emi to Rs.19485/- and also increased my tenure to 322 months (after paid for about 72 months, currently we are paying 15.25% interest on said loan. Also they are adjusting a very little amount towards my principal compaire to previous months. My husband and my self approached to bank somany times and also wrote a letter to Ms Chanda Kochhar regarding the same but no response from bank side. The bank looks like a money lander where the loan amount never reduce till the death of person. Please help us. The government also with them they never take the hard action against such type of bank.
Nithya Maniyan's reply, Jun 3, 2019
I am in a similar situation. The loan tenure of my loan of 10 years is complete, but as per floating interest rates the bank claims they expect us to keep paying the loan for ever. Did you receive any updates for your complaint?

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