ICICI Bank — Home finance refuses to reduce floating rate, poor response

I took a home loan of ₹68, 00, 000 from ICICI Home Finance in October 2024 (disbursed November 2024) with a floating interest rate of 8.85%, EMI ₹56, 369, for 25 years. The rate is tied to their IHPLR (19.05%), which they claim adjusts with market conditions. After the RBI reduced the repo rate to 6.25% in February 2025, I expected a rate drop, especially with the monthly reset clause in my agreement. However, my rate remains unchanged as of March 27, 2025.
I emailed their nodal officer twice (March 20 and ~March 26, 2025) asking why IHPLR hasn’t been revised, when it’ll be reviewed, and what factors drive it. Their replies (March 20 and March 27) are identical and vague: “No changes implemented, we’ll evaluate market conditions, call customer care[protected].” No timeline, no explanation — despite competitors like SBI (8.25%), PNB (8.15%), and even Bajaj Housing Finance (8.25%) — an HFC not under RBI, like ICICI — cutting rates post-repo cut.
This inaction costs me ~₹9 lakh extra over 25 years compared to switching to 8.25% (EMI would drop to ~₹54, 690). Their latest response (March 27) ignored my concerns and just told me to call for a foreclosure statement, avoiding written accountability. I’m now planning to transfer my loan elsewhere due to their uncompetitive rates and terrible service.
ICICI Home Finance’s lack of transparency and refusal to pass on market benefits is unacceptable. Other borrowers should beware — choose lenders like SBI or Bajaj Housing that actually adjust rates. I request a proper explanation and rate revision, or I’ll escalate this to the NHB Ombudsman after foreclosure.
Details:
Loan Amount: ₹68, 00, 000

Rate: 8.85% (floating)

EMI: ₹56, 369

Start Date: November 2024

Responses Received: March 20, March 27, 2025