ICICI Home Loan — How the Interest being calculated

ICICI Home Loan — How the Interest being calculated

M Manish Garg from Delhi, Delhi

Hi, As I have purchased a propoerty I was Happy, With all good things in mind, I approaced ICICI Bank for HOME LOAN, Noida Office. With all the commitments and promises, my loan was disbursed on 31st May 06 of amount Rs 23, 59, 547 for 20 Years. With EMI of Rs 24, 287. With time the interest changes and my EMI was increased from Rs 24, 287 to Rs 28, 407. Not only this, the tenure was increased from 20 years to 35 Years. I was shocked. How the calculation have been done. I want to ask ICICI to please give me the explaination for this: On what basis ROI was increased How the calculation were done. How the tenure has increased from 20 years to 35 Years. I want to take it to the highest level. Regards, Manish Was this information helpful? No (0) Yes (0)

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Nazia Sayeed

from Pune, Maharashtra

Dear Mr. Garg,

Kindly write to us at [protected]@icicibank.com with ‘Customer Service issue – home loan’ as the subject line. Request you to provide the relevant details of your loan along with your full name and contact details.

We will be happy to help you.

Regards,

Nazia Sayeed
Office of the Nodal Officer
ICICI Bank

Subrata Kumar Baliarsingh

I agree with you. If you approach ICICI HFC, they will take a plea that rate of interest is calculated as per Floating Reference Rate. FRR is nothing but an internal banking mechanism to asses the cost of the fund, the operation cost of the fund.

What I assume that if sizeable number of customer defaulted in repaying thier EMI, then it would have rippling effect on the interest rate on your Home Loan.

My only constraint is discriminate banking paractice, where interest rate imposed on exisitng home loan is 11.75% and at the same time interest rate on new loan is 9.25%. This is irrational.

I dont find any Government regulation debarring such irrational imposition of interest rate by different banks/Housing Finance Co; resulting financial loss to customers.

Regards Subrata