ICICI Bank — Personal loan miscommunication and foreclosure charges.

pamssd

Address:

Bangalore, Karnataka, 560016

Hello,

I would like to get some help on one of the worst experiences from any bank I have bought loan from. I requested a Personal Loan of INR 7, 20, 000 from ICICI Bank. There was no foreclosure charges or initial lock-in period that was communicated to me either via email or message or in written. I got the loan disbursed for INR 7, 05, 064 on 7th Dec 2015. The loan amount disbursed had processing charges of around INR 2, 500 which I had agreed to. Until I got the Welcome Letter I wasn't aware of the foreclosure charges or the 6 months lock-in period. I had asked almost all the executives about the same when I spoke to them about the loan during processing but none of them gave out any responses for the same. In an instance or two when I got calls for the verification, I was told that I will get a call from the bank when I asked about the charges. The loan was disbursed without letting me know of charges. When I got the last call for disbursal, I asked them to hold off the disbursal until I was notified about the charges and still they disbursed the loan.
The loan was disbursed with an insurance charge of around INR 13, 500. I am 100% sure that I never signed the insurance application form. How could the bank deduct the insurance charges when I never authorized it? Did some of the bank executives forge my signature on the form? I went to a branch and checked with them for a scanned copy of the insurance that I signed. They do not have that document in the KYC docs.
They had assigned me a relationship manager. I spoke to her after the loan was disbursed and she said she will raise a memo with her business head requesting the waiver of foreclosure charges and lock-in period. But I haven't heard back from her till now about it. When I tried speaking to her about the same, she said there will be a lock-in for 6 months and pre-closure charge of 5% and the waiver can only be given for about 1-2% of pre-closure charges once I pay 12 EMIs. I am really surprised with a complete turnaround in her words. Also, she bluntly asked me to go to a branch and meet the branch manager for further help.

I want to close my loan at the earliest as I am applying for a home loan and this personal loan is reducing my eligibility by a greater extent. Even though all the above mistakes have been committed by the bank, the branch I visited asked to pay a sum of INR 7, 45, 043 for the pre-closure that would include 5% (around INR 37, 000) of foreclosure charges and around INR 8, 000 of service tax. Why should I be liable to pay the same? I never accepted the loan to be disbursed to me in the first place, I never accepted the foreclosure charges, I never asked for insurance.

Any help with getting this fixed will be greatly appreciated.

Was this information helpful?

No (0)

Yes (0)

ICICI Bank customer support has been notified about the posted complaint.

Related ICICI Bank reviews

View all 23615 ICICI Bank Reviews

Comments

ICICI Bank Customer Care

from Mumbai, Maharashtra

Verified Support

Dear Customer,

We regret the inconvenience caused. We request you to email us your concern with your contact details on [protected]@icicibank.com. Please mention the UID (a34j5b) in the subject line of your email. Our official will assist you.

Regards,
ICICI Bank Customer Service Team

pamssd

Today I got another call from ICICI about the issue. The customer service officer Ankit Shah who was supposed to give me a resolution on the same but kept saying the same thing that the bank officials mentioned in the first place when I asked them for the pre-closure of my loan. Also, he tried to impose things on me that I am also equally responsible for knowing the pre-closure charges and also says that they have an agreement that I signed which mentions the pre-closure charges of 5%. I am 100% sure that I never signed that document with the charges already mentioned. The person who collected my document mentioned that the bank will add the pre-closure charges later after discussing with me. But I never got the confirmation from the bank before the loan was disbursed and the welcome letter was sent out me. They must have added the charges themselves and released the funds. I have asked all the representatives who have called me or met me for documents/verification after the first call that I received from ICICI about the loan. All the executives kept telling me was that they were not responsible for the same and I would be getting a call from the bank about the same. I never got any such call from the bank before the loan was disbursed. This clearly specifies that I have done my part of responsibility of trying to know the charges. I can only ask the bank officials about the same and if they do not give out the information, it would not be considered as my fault. Also, they should have taken an email confirmation from me about the loan amount, interest rate, tenure, lock-in period, pre-closure charges etc. and that was not done too.

I also tried to raise the request to the Nodal officer but no response received on the same till now.

Is there anyone out there who could get me a quick resolution on the issue. I do not want to end up paying another EMI for the loan when I am ready to pre-close it.

Any help will be greatly appreciated.