[Resolved] ICICI Home Loan — Extra Interest charged / Penalty charged | |
Struggling to get a closure on my home loan with ICICI bank.I was ready to pay penalty on my o/s pricipal however bank is asking me to pay penalty on o/s principal plus all the prepayments made in the mast 12 months. ICICI bank reverted on email "Foreclosure charges of 2% on outstanding principal plus applicable service tax on the foreclosure charges are being collected for foreclosing of the loan. However, a 2% charge will be levied on all part-prepayments made in the last one year in event of a Foreclosure." Foreclousre statement attach does not mention any details of my prepayments and mentions very clearly penalty to be charged on the o/s p rincipal I have been visiting their Jhandewalan Branch since Aug 08 and aksing for a foreclosure .I was pregnant during the time ; and had complications in my pregnancy because of harrassment by their employees. They had always applied increased rate of interest on my account with immediate effect ; however since october 08 the rate of interest is on decreasing trend ; They reduced my monthly emi from 5497 to 5011 and also increased two emi's ... Which means even if the rate of intrest decreased I will still have to pay them approx. 10, 000 extra... visiting their branch their Area Manager tells me the effect for the same will be applied after 2 months as bank has some internal expenses incurred ! I recieved a letter form ICICI bank dated may 1st 2009; floating roi reduced by 0.50% p.a revised rate on your loan is 11.75% p.a and this will be effective for your loan from JULy 2009. Was this information helpful? | |
Aug 14, 2020 Complaint marked as Resolved | |
 4 Comments | |
Comments
I think the bank is cheating on existing customers, when they are selling new loans at 8.5% per annum ( floating Rate), how come the existing loans are at 11.75%.
I think we should report all this matter to RBI for exploiting existing customers.
I think we should report all this matter to RBI for exploiting existing customers.
I have seen recent advertisement in the news paper to give loan at reducing 8.5% per annum. I have existing loan going on at 11.75% per annum. I am not too sure why the difference. Is to attract new customer and give them loan and charge a higher rate later.
That is what has happened to my loan, When I started my loan in Nov 2006 the rate was 7.75% and it reached to a peak level of 12.5% and now it has reduced a bit to 11.75%.
I have a very simple question to the institute, when you are acquiring new customer at 8.5% (floating rate) how can you charge more amount to your existing customer.
Though the interest rate change has recently been announced to be effective from June, there are no changes on the EMI shown in the amortization schedule.
As a normal practice RBI should not allow charging differential or less interest rate to new customers. This is highly unethical on bank’s part. As the existing customer has already committed to the bank by taking a loan from the bank.
I think RBI should observe and investigate this matter. If not we should approach higher authorities for taking corrective action.
As my experience with a bank does help me understand the asset & liability imbalances from the bank’s perspective. I can see that bank is exploiting existing customers and taking the observer or regulator ( RBI) for a ride.
That is what has happened to my loan, When I started my loan in Nov 2006 the rate was 7.75% and it reached to a peak level of 12.5% and now it has reduced a bit to 11.75%.
I have a very simple question to the institute, when you are acquiring new customer at 8.5% (floating rate) how can you charge more amount to your existing customer.
Though the interest rate change has recently been announced to be effective from June, there are no changes on the EMI shown in the amortization schedule.
As a normal practice RBI should not allow charging differential or less interest rate to new customers. This is highly unethical on bank’s part. As the existing customer has already committed to the bank by taking a loan from the bank.
I think RBI should observe and investigate this matter. If not we should approach higher authorities for taking corrective action.
As my experience with a bank does help me understand the asset & liability imbalances from the bank’s perspective. I can see that bank is exploiting existing customers and taking the observer or regulator ( RBI) for a ride.
Hey Guys
That's what is private banks. I got a loan in SBI 4 years back. at 8% (normal rate is 8.5% then) p.a. for 15 years in an Home loan mela. Though the interest rate increased along the time and it was always my current interest rate + points increased. i.e, if Bank increases .0.5 pc in its current interest rate. Then I would get increase of the same. Again, when it reduces 0.5 pc I get same cut on interest and my current interest rate is 8.75%. Which is correct, I never got a letter from SBI for change of my EMI. But depending on the balance payable and the current interest rate. My expected tenure keeps changing. From 15 years now it has increased to 17 years. When I am able to increase my EMI, I will get the reduced tenure.
On Economic slow when interest rates reached their peak, I got a letter from SBI to make one time payment of Rs.14000/- apx towards the additional interest levied so far.
You guys facing such pains with private banks because, you want everything in comfort at home. Taking some pains to analyse at start saves a lot of pain in future.
I have analysed about 10 different private banks, nationalised banks and Housing finance companies before deciding on the bank, I should approach for the loan. I had to spend only three full days to get my loan sanctioned.
That's what is private banks. I got a loan in SBI 4 years back. at 8% (normal rate is 8.5% then) p.a. for 15 years in an Home loan mela. Though the interest rate increased along the time and it was always my current interest rate + points increased. i.e, if Bank increases .0.5 pc in its current interest rate. Then I would get increase of the same. Again, when it reduces 0.5 pc I get same cut on interest and my current interest rate is 8.75%. Which is correct, I never got a letter from SBI for change of my EMI. But depending on the balance payable and the current interest rate. My expected tenure keeps changing. From 15 years now it has increased to 17 years. When I am able to increase my EMI, I will get the reduced tenure.
On Economic slow when interest rates reached their peak, I got a letter from SBI to make one time payment of Rs.14000/- apx towards the additional interest levied so far.
You guys facing such pains with private banks because, you want everything in comfort at home. Taking some pains to analyse at start saves a lot of pain in future.
I have analysed about 10 different private banks, nationalised banks and Housing finance companies before deciding on the bank, I should approach for the loan. I had to spend only three full days to get my loan sanctioned.
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+91 22 2653 1414
ICICI Bank Towers, Bandra-Kurla Complex, Mumbai, Maharashtra, India - 400051
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Kindly write to us at [protected]@icicibank.com with ‘Customer Service - 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 glad to assist you.
Regards,
Nazia Sayeed
Office of the Nodal Officer
ICICI Bank