I am Mukesh R Kabra, Staying at K-504 Indraprastha Tower, Nr. Drive-in Cinema, Ahmedabad – 380052. having home loan & top-up loan from ICICI Home Finance. I am not happy with the ICICI home loan, top-up loan's current interest rates (FRR / PLR).

RBI reduced the Repo rate & so nationalized banks also reduced the FRR/PLR (SBI's home loan interest rate 8% to 8.5%). But private banks like ICICI are not reducing it proportionately (for me currently ICICI's Home loan Interest rate is 13%, for top-up it is 14.75% & FRR/PLR is 13.75%). But while increasing FRR / PLR, they are always ahead of nationalized banks.

Four-Five yrs before, when I approached the ICICI bank for home loan, Interest rate of ICICI (In Feb 2004, FRR/PLR of ICICI was 9.75% & with -2.25% variance with FRR/PLR, I got the loan at 7.50% ROI) & Nationalized bank was almost same (Nationalised banks were charging around 7.50% interest rate). Now the difference between ROI in Nationalized banks & ICICI is around 5% (13% - 8%). [The effect of the difference in ROI of Home Loans between nationalized & ICICI bank for Rs. 10,00,000/- loan & the tenure of 20 yrs is Rs. 3,500/- per month .]

Currently, Bank rates of ICICI bank are different, for new / existing customers. So without reducing FRR/PLR, they are reducing interest rate for new customers (just to attract new customers) by giving more variance in FRR/PLR with ROI. So they are charging ROI of 12.50% for existing customers & around 8.25% for new customers. Not sure, whether this is cheating of existing customers as per consumer laws / RBI regulations.

I taken floating interest rate option, under the impression that "Floating Interest Rate" means the FRR/PLR is directly proportional with the RBI Repo rate. ICICI, increases the FRR/PLR, immediately after increase in REPO, but while reducing they are reluctant (just to fill their pockets with the difference between FRR/PLR & Repo). Then what is meaning of "Floating Interest Rate"? I think, it's cheating with the customers.

We, as a consumer, understand, if there is –

- minor dis-proportion of FRR/PLR of banks with RBI Repo Rate and
- minor difference of Interest rates in Nationalized & Private bank.

But when there is huge difference, we, as a consumer or as a common man, become helpless. We feel that private banks like ICICI are cheating us. And when there is recession and people have fear of job loss this is very frustrating.

Transfer of loans to some other bank is one solution on this problem, but an expensive one. For transfer, ICICI will charge 2% on the outstanding principle, plus applicable service tax @12.36% on the foreclosure charges. Then processing fees (0.5%) of the new bank is new burdon, though which is acceptable. Since loan transfer is Prepayment of the loan (by taking loan from other bank). Not only for loan transfer but even for Prepayment, ICICI charge 2.25% on outstanding Amount. Not sure, whether charges on Full Payment / Prepayment has any legal ground, because as per my knowledge, SBI is not chanring anything for Pre-payment (But I am not sure).

In this way, ICICI has blocked all the roads of customers (loan transfer is expensive, staying with ICICI is also expensive).

Note: Last week, ICICI came up with scheme for existing customers to reduce the interest rate (making variance with FRR/PLR to 4%) by paying 1.75% of outstanding amount & some other fees. By this scheme now status of existing customer for home loan will be changed to new customer & he will get new home loan account number. So bank is treating existing customer as a new customer, by charging some amount. Just to reduce EMI burdon of my home loan- though unwillingly- I opted for it, which may get effect in next month. But scheme is not for top-up loan. So still having very high ROI for top-up loan. Though I am not happy, in paying for such Home-Loan scheme, to reduce the ROI; since RBI reduced the Repo and ICICI is supposed to transfer that benefit to existing customer (having floating rate option)- without delay & without such extra payment schemes (where existing customers will be converted to new customer).

RBI / Central Government are the governing bodies, but they may not have any control on this.

As a common man, confused with the situation. Don't know who can help us. There is always hope from Consumer Court, but not sure, if this issue can be discussed in consumer court.

I have taken insurance on my both the loans from ICICI for security purpose. Even I don't know now my new customer status in case of Home Loan, will nullify the insurance coverage for my home loan.

Minimum Expectations are

1. There should be way out (loan transfer), without any transfer charges, if banks due to some reasons can't reduce their interest rates.

2. There should not have discrimination among new & existing customers of loans, because this is cheating with existing customers.

3. Converting existing customer into new customer to provide the benefits- that too by charging existing customers should be avoided.

4. The additional rate of interest charged till date should be reimbursed to the customer. The rate of interest should be only as per RBI regulation.

Though solution is only in chnage in FRR/PLR appropriate to repo- without any delay.

Originally Posted by etamsetti

Hi,

My name is Raj Kishore Etamsetti, I have taken a home loan in ICICI Bank, at the time of loan disbursment my ROI is 9.5, later it went upto a maximum of 13% and at present is @ 11.5%.

I dont understand what is the meaning of floating ROI, when the banks are not decreasing the ROI for all the exisisting customers, why are they showing the difference between New and old customers?

THe difference between my ROI & FRR/PLR is 1.25% so my current ROI is @ 11.5%

is that not unfair to charge 2.25% for an existing customer to change from 11.5% to 8.25% within the same bank. this is a kind of cheating that ICICI is doing.

My Loan A/c is LBVPM00001459974

Is there any way i can file a compliant on ICICI for asking me a 2.25% charges for changing my floating ROI from 11.5% to 8.25%

Hi,

We're sorry to hear about your experience.
We'll contact you and work to address your issue at the earliest.

Regards,
ICICI Customer Service Team.

Hi Raj,

This is Haresh and I am facing the same problem with ICICI bank. I have a loan where they are charging me 10.5% and asking for 1% processing fees to reduce it to 8.75%.

I have filed an online complaint with RBI Ombusdman today only and waiting for response. You may like to do the same. It is simple just do a search in google with keyword "RBI Ombudsman.

I agree that it is complete cheating where bank first charges customer excess interest and then asks for processing fees to reduce the rate of interest.

You can contact me on haresh.patoliya@yahoo.in for any details.

Thanks
Haresh

Originally Posted by Mukeshkabra

I am Mukesh R Kabra, Staying at K-504 Indraprastha Tower, Nr. Drive-in Cinema, Ahmedabad – 380052. having home loan & top-up loan from ICICI Home Finance. I am not happy with the ICICI home loan, top-up loan's current interest rates (FRR / PLR).

RBI reduced the Repo rate & so nationalized banks also reduced the FRR/PLR (SBI's home loan interest rate 8% to 8.5%). But private banks like ICICI are not reducing it proportionately (for me currently ICICI's Home loan Interest rate is 13%, for top-up it is 14.75% & FRR/PLR is 13.75%). But while increasing FRR / PLR, they are always ahead of nationalized banks.

Four-Five yrs before, when I approached the ICICI bank for home loan, Interest rate of ICICI (In Feb 2004, FRR/PLR of ICICI was 9.75% & with -2.25% variance with FRR/PLR, I got the loan at 7.50% ROI) & Nationalized bank was almost same (Nationalised banks were charging around 7.50% interest rate). Now the difference between ROI in Nationalized banks & ICICI is around 5% (13% - 8%). [The effect of the difference in ROI of Home Loans between nationalized & ICICI bank for Rs. 10,00,000/- loan & the tenure of 20 yrs is Rs. 3,500/- per month .]

Currently, Bank rates of ICICI bank are different, for new / existing customers. So without reducing FRR/PLR, they are reducing interest rate for new customers (just to attract new customers) by giving more variance in FRR/PLR with ROI. So they are charging ROI of 12.50% for existing customers & around 8.25% for new customers. Not sure, whether this is cheating of existing customers as per consumer laws / RBI regulations.

I taken floating interest rate option, under the impression that "Floating Interest Rate" means the FRR/PLR is directly proportional with the RBI Repo rate. ICICI, increases the FRR/PLR, immediately after increase in REPO, but while reducing they are reluctant (just to fill their pockets with the difference between FRR/PLR & Repo). Then what is meaning of "Floating Interest Rate"? I think, it's cheating with the customers.

We, as a consumer, understand, if there is –

- minor dis-proportion of FRR/PLR of banks with RBI Repo Rate and
- minor difference of Interest rates in Nationalized & Private bank.

But when there is huge difference, we, as a consumer or as a common man, become helpless. We feel that private banks like ICICI are cheating us. And when there is recession and people have fear of job loss this is very frustrating.

Transfer of loans to some other bank is one solution on this problem, but an expensive one. For transfer, ICICI will charge 2% on the outstanding principle, plus applicable service tax @12.36% on the foreclosure charges. Then processing fees (0.5%) of the new bank is new burdon, though which is acceptable. Since loan transfer is Prepayment of the loan (by taking loan from other bank). Not only for loan transfer but even for Prepayment, ICICI charge 2.25% on outstanding Amount. Not sure, whether charges on Full Payment / Prepayment has any legal ground, because as per my knowledge, SBI is not chanring anything for Pre-payment (But I am not sure).

In this way, ICICI has blocked all the roads of customers (loan transfer is expensive, staying with ICICI is also expensive).

Note: Last week, ICICI came up with scheme for existing customers to reduce the interest rate (making variance with FRR/PLR to 4%) by paying 1.75% of outstanding amount & some other fees. By this scheme now status of existing customer for home loan will be changed to new customer & he will get new home loan account number. So bank is treating existing customer as a new customer, by charging some amount. Just to reduce EMI burdon of my home loan- though unwillingly- I opted for it, which may get effect in next month. But scheme is not for top-up loan. So still having very high ROI for top-up loan. Though I am not happy, in paying for such Home-Loan scheme, to reduce the ROI; since RBI reduced the Repo and ICICI is supposed to transfer that benefit to existing customer (having floating rate option)- without delay & without such extra payment schemes (where existing customers will be converted to new customer).

RBI / Central Government are the governing bodies, but they may not have any control on this.

As a common man, confused with the situation. Don't know who can help us. There is always hope from Consumer Court, but not sure, if this issue can be discussed in consumer court.

I have taken insurance on my both the loans from ICICI for security purpose. Even I don't know now my new customer status in case of Home Loan, will nullify the insurance coverage for my home loan.

Minimum Expectations are

1. There should be way out (loan transfer), without any transfer charges, if banks due to some reasons can't reduce their interest rates.

2. There should not have discrimination among new & existing customers of loans, because this is cheating with existing customers.

3. Converting existing customer into new customer to provide the benefits- that too by charging existing customers should be avoided.

4. The additional rate of interest charged till date should be reimbursed to the customer. The rate of interest should be only as per RBI regulation.

Though solution is only in chnage in FRR/PLR appropriate to repo- without any delay.

Dear Mukesh,

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

Regards,
ICICI Customer Service Team.

Originally Posted by Unregistered

Hi Raj,

This is Haresh and I am facing the same problem with ICICI bank. I have a loan where they are charging me 10.5% and asking for 1% processing fees to reduce it to 8.75%.

I have filed an online complaint with RBI Ombusdman today only and waiting for response. You may like to do the same. It is simple just do a search in google with keyword "RBI Ombudsman.

I agree that it is complete cheating where bank first charges customer excess interest and then asks for processing fees to reduce the rate of interest.

You can contact me on haresh.patoliya@yahoo.in for any details.

Thanks
Haresh

Dear Haresh,

We're sorry to hear about your experience.
We'll contact you and work to address your issue at the earliest.

Regards,
ICICI Customer Service Team.

Hi

I'm also facing the same problem. I have a loan of amount 12,20,000 /- with ICICI. That is the biggest mistake i have ever done my life. Now my interest rate is 10.5%. But, new customers still getting at 8.5%. When i have asked bank officer about this, he asked asked me to pay around 6500/- processing fee and take some investment plan and he explained me about the polocy saying that pay 35000/- for three continuous year for 5 year locking period to get reduce my rate to 10.5 % to 8.5%.

Atleast it make sense to pay some service or processing charge but , I'm clue less. Why do i need to do investment to reduce in my loan interest rate.

Hi,

I am also facing the same issue and am paying 11.75% as the interest rate now which is way higher than what they are offering new customers. They are asking a service charge of 1% to change the interest rate which is not acceptable.

why should we pay the 1% service charge? Then what's the meaning of floating rate? They will keep on increasing whenever they get a slightest chance and to decrease alone, they are asking for charges..

Haresh, Did you get any response from RBI ombudsman? How do you resolve the issue?

Thanks,
shankar.

Originally Posted by devendar

Hi

I'm also facing the same problem. I have a loan of amount 12,20,000 /- with ICICI. That is the biggest mistake i have ever done my life. Now my interest rate is 10.5%. But, new customers still getting at 8.5%. When i have asked bank officer about this, he asked asked me to pay around 6500/- processing fee and take some investment plan and he explained me about the polocy saying that pay 35000/- for three continuous year for 5 year locking period to get reduce my rate to 10.5 % to 8.5%.

Atleast it make sense to pay some service or processing charge but , I'm clue less. Why do i need to do investment to reduce in my loan interest rate.

Dear Devendar,

We're sorry to hear about your experience.
Please write to us with your contact details and loan account number at care@icicibank.com (Subject line: UID 161926). We'll contact you and work to address your issue.

Regards,
ICICI Customer Service Team.

Hi All

Please update what was the conclusion of charging 1% switching fee by the bank. I am being charged at 12.25% ROI even in these days when bank is offering 8.25% to ite new customers. 1% + service tax is huge switching fee to reduce to 8.75% for its existing customers.

Please inform in case anyone got satisfactory reply from the bank.

Regards
Deepak

Hi,

I am also facing the same problem as many people. I have taken home loan in 2006 and it reached to around 13%. In fact I have already given them 0.5% in between to reduce my interest rate. My interest rate is still 10.5% and when I went to bank they asked me to give 1% to reduce the interest rate to 8.25%. I am also planning to file a formal complaint. Can anyone please help me.

Does the marketing department of ICICI including their service department listening to inconvenicence and distress I have got.

Honi Jain
9810449864
honey_ism@yahoo.com
Loan No - LBDEL00001268265 AND LBDEL00001268265

Originally Posted by Unregistered

Hi,

I am also facing the same problem as many people. I have taken home loan in 2006 and it reached to around 13%. In fact I have already given them 0.5% in between to reduce my interest rate. My interest rate is still 10.5% and when I went to bank they asked me to give 1% to reduce the interest rate to 8.25%. I am also planning to file a formal complaint. Can anyone please help me.

Does the marketing department of ICICI including their service department listening to inconvenicence and distress I have got.

Honi Jain
9810449864
honey_ism@yahoo.com
Loan No - LBDEL00001268265 AND LBDEL00001268265

Dear Honi,

We're sorry to hear about your experience.
We'll contact you and work to address your issue at the earliest.

Regards,
ICICI Customer Service Team.

Hi,

I am very upset with ICICI Bank. I have taken home loan in 2006 and it reached to around 13.5%. My interest rate is still 12% and when I went to bank they asked me to give 1% switch charges and investment around 60,000 for 5 years to reduce the interest rate to 8.25%. I am also planning to file a formal complaint. Can anyone please help me.

Now I will go Electronic Media also so that they can highlight the blackmailing.4 years experience with ICICI Bank is enough to give the mental harassment.


Amar Ujala
9810155531
amarujala77@rediffmail.com
Loan No - LBFDB00001346309

Dear Amar,

We're sorry to hear about your experience.
We'll contact you and work to address your issue at the earliest.

Regards,
ICICI Customer Service Team.

Dear Chanda Kochhar Madam,

This is with reference to the above subject.

I had the most harrowing experience from ICICI Home Loan Department in Borivali(W) from the customer service representative.

I went to the Borivali(W) branch around a month back to enquire about how to convert the existing home loan to the new rates and again went on 30th Jan 2010 and met with the same customer service representative but both the times she gave me different details on the schemes available for conversion and second time she even told me that there is no scheme available for conversion and she has never told me about any such scheme.She even failed to recognize me and told me that nothing can be done.

I had taken Home Loan in 2004 and my current rate is 12.75% floating, my FRR/PLR is 0.75%,so effective rate is 12%.

During my first visit , I asked the customer service representative on the process for conversion and she told me that I will have to pay 1.75%+service tax to convert my old home loan to new rates of 8.75%. I told her that this is not fair and there should be something for the existing home loans customers to convert their old rates to new ones without any charges.

She first made some faces and then told me that she can give me 8.25% fixed for 2 years and floating rate thereafter with no conversion charges if I make an Investment of INR 50,000/- per year in ICICI Purdential's Retirement Plan with no entry and exit loads.She was very keen to sell the Investment Plan and was not bothered to listen to my problem. I told her I cannot make the investment, so she told me that I will have to pay the conversion charges.

I do not understand why ICICI Bank wants to penalize all its old customer's with such conditions and lack of transparency, why does the bank want to charge any conversion rates for customers who wish to increase their variance, why is ICICI Bank asking its representatives to sell ICICI Prudential Products to convert old home loan rates to new.

Such behavior from customer service representative of such a reputed bank baffles me completely.

I have the below requests to ICICI Bank:
1.Convert my existing Home Loan to New Home Loan rates and give me a Variance of 4% fixed for the entire tenure.
2.This conversion should be done without charging any fees.
3.I should not be asked to invest in any ICICI Prudential Plan.

I request for an early resolution to my problems.

My Contact Details are
Hitesh K Soni
9821475857 (M)