Last year, April 2008, i applied for fore-closure of housing loan held with ICICI Bank since Feb 2004. The fore-closure was on account of reduced interest rates of 10.5% by SBI Bank. ICICI bank based on my repayment track & to retain me as a customer, offered to reduce the existing applicable interest rate from 12.5% to 10.5% on payment of 0.5% of outstanding principal (Rs. 4924/-). A fresh Loan Agreement was signed between the bank & myself (including my co-borrower) on 10 May 2008 with the Terms of the Agreement to be effective 7 June 2008. In addition to the Loan Agreement, i also received a bank letter dated May 13, 2008 reflecting the changes in loan term including revised loan tenure.

To my surprise, as per the amortization schedule, the Bank did not implement the change as agreed to in the Loan agreement/Letter of May 13, 2008, and without intimation increased the interest rate to 11.25% immediately from June 2008 & to 12% staring October 2008. In the process, i didn't even recover the money that i was asked to pay upfront for the interest rate switch.

To me, the incident cited calls for an unfair practice on part of the Bank aimed at retaining the customer, making false commitments and agreements, and not following justified practice.

I have approached the bank authorities lodging complaints through their web-site and approached a few local officials in person. The officials indicated non-adherence to the terms of agreement but were not ready to followup the case to closure. I also lodged a formal complaint to the Bank through their web-site and have been offered feedback through their representatives for early closure, however the Bank doesn't seem to be keen to address the issue, accept the error and take necessary remedial action.

With my limited resources & knowledge of the Legal & Banking industry, I am thus approaching your kindselves to request to resolve the issues cited by having the Bank honour the Loan Agreement & pass on the interest rate benefits as in the Loan Agreement.

I look forward to your cooperation and early closure.

Thanks & regards,

Originally Posted by rpandita

Last year, April 2008, i applied for fore-closure of housing loan held with ICICI Bank since Feb 2004. The fore-closure was on account of reduced interest rates of 10.5% by SBI Bank. ICICI bank based on my repayment track & to retain me as a customer, offered to reduce the existing applicable interest rate from 12.5% to 10.5% on payment of 0.5% of outstanding principal (Rs. 4924/-). A fresh Loan Agreement was signed between the bank & myself (including my co-borrower) on 10 May 2008 with the Terms of the Agreement to be effective 7 June 2008. In addition to the Loan Agreement, i also received a bank letter dated May 13, 2008 reflecting the changes in loan term including revised loan tenure.

To my surprise, as per the amortization schedule, the Bank did not implement the change as agreed to in the Loan agreement/Letter of May 13, 2008, and without intimation increased the interest rate to 11.25% immediately from June 2008 & to 12% staring October 2008. In the process, i didn't even recover the money that i was asked to pay upfront for the interest rate switch.

To me, the incident cited calls for an unfair practice on part of the Bank aimed at retaining the customer, making false commitments and agreements, and not following justified practice.

I have approached the bank authorities lodging complaints through their web-site and approached a few local officials in person. The officials indicated non-adherence to the terms of agreement but were not ready to followup the case to closure. I also lodged a formal complaint to the Bank through their web-site and have been offered feedback through their representatives for early closure, however the Bank doesn't seem to be keen to address the issue, accept the error and take necessary remedial action.

With my limited resources & knowledge of the Legal & Banking industry, I am thus approaching your kindselves to request to resolve the issues cited by having the Bank honour the Loan Agreement & pass on the interest rate benefits as in the Loan Agreement.

I look forward to your cooperation and early closure.

Thanks & regards,

Hi,

We're sorry to hear about your experience.
Please write to us with your specific issues and contact details at care@icicibank.com. We'll contact you and work to address your issue.

Regards,
ICICI Customer Service Team.

please wait for the response from customer care