ICICI Bank — Personal loan Pre Closing Charges @ 5.9%

Address:

ICICI bank

Hi my Name is M Prem chander, I took a loan amount of 2.15 lakhs from icici bank 2 years back.

When i approached bank to preclose my loan. But they have levied a preclosure charge of 5.9% ( 5% is charges and 0.9% is GST).

But I don't understand, Why is it necessary since i have paid almost 26 emis out of 36 and still u want to levy some penalty charges for outstanding of 70360 rupees.

A small brief :

The EMI is 7633 x 10 = 76330 ( if i continue the same as EMI for next 10 months).
The Preclosure outstanding is 70360 + 3518 (5% charges) + 633 (0.9% GST) = 74511 rupees.

EMI total amount : 76330
Preclosure amount : 74511
Difference amount : 1819

With the above analysis, we dont see any benefit to the customer on pre closure of loan amount. Also Bank can circulate this pre closure amount to other customers and get additional benefits. Then why the customer has to pay 5.9%as penalty for pre closing.

And also my account is a previlige account of ICICI Bank. But nothing is there when it comes to customer offers. I have discuss with ICICI employee at Uppal kalan Branch, Hyderabad but no positive response. They says this is the process which we need to follow. If i claim the waiver within a short span it is acceptable to give off. But bank has already recovered almost all of it's interests. After doing all these it levies penalty for preclosing, this is not acceptable. It is so bad than a local intesrest lender.
When i inquire about the same in other banks there is less charges for preclosing. They say once 12 emis are paid foreclosure charges are not applicable but why icici has a different policy. Finally my request is i want to get this penalty waived off.

So kindly review and revise the process so that customer also benefitted with it