Dear sir/madam,

I have applied for home loan with ICICI bank in Jan 2008 with application number 777-7697108 and got loan sanctioned (with ref ID 58993818) for Rs 3030990/- on 17th Jan 2008. Processing fee Rs 17029/- has been deducted from my bank account. Till April 2008 loan had not disbursed to me and also not intimated cause of delay. I have contacted my executive many times for the same. In one instance he mentioned that ICICI bank is asking acknowledgement of Building Penalization Scheme application. Then in the second instance he told that bank has changed rules and asking final approval of the BPS application (AP Govt is giving approvals from April 2009 only).
Due to delay at ICICI bank I have approached AXIS bank and got the loan. When I asked my executive for process of getting processing fee (0.5%) back he told that contact ICICI bank. I have contacted ICICI bank through email, they replied with the following message (i am having mails also):
"According to our telephonic conversation dated June 18, 2008 on 9849456951, we would like to inform you that we will not be able to fund the property as the Property selected by you is not approved by Huda or Grampanchayat lay out.
The administration fee is charged for the technical and legal verification to be done for sanctioning the loan and is debited to you only once the loan has been sanctioned, which is non refundable.
The Administrative fee is calculated on sanction amount where as the disbursement amount would depend upon the property value.
The applicable Administrative fee is 0.5% of the loan amount or Rs. 1500/- , whichever is higher + applicable Service Tax @ 12.36%.
The processing fee charges would also depend upon the scheme under which loan is sanctioned.
Note: As clearly mentioned in the Sanction Letter, the disbursement is subject to legal and technical clearance.
Further, we would like to inform you that we will be unable to share the legal and Technical verifications report with you."

He mentioned in above message that loan sanction will be done only after technical and legal verification. But loan disbursement is based on legal and technical clearance. I do not understand what went wrong technically and legally after giving me sanction letter. This is kind of cheating customer by sanctioning and not dis loan. And also not providing the documentation to customer why loan is not disbursed after sanctioning loan. Looks like ICICI bank innovated this method of cheating customer.

No other bank charges this much for just technical and legal verification (AXIS charged only 5600/- legal and technical verification).

Recently I heard that consumer court ordered ICICI bank to refund processing fee to customer for sanctioning loan and not disbursing loan.

Please let me know how I can proceed legally.

Thanks,
Arun Prasad Mandava
arunmandava@gmail.com

Dear sir/madam,

I have applied for Home loan in ICICI Bank a week ago, and later because of some unavoidable situations i have not taken the loan, now bank people telling they will not reurn processing fees.

While submitting document i have been told that they will return back the processing feec of 11,130/- if i dont take the the loan/ if i cancel in between
Please help me out, 11,130/- is not a small amount for middle class ppl like me.

Thanks
Basavaraj N W
bnwraj@gmail.com
+91 9008085084

similar thing has happened with me too... I gave the cheque. but didnt get the loan disbursed. Now they are asking for processing fees. thankfully the cheque is not yet cleared and i blck the payment now. But this is rediculous

ICICI bank is taking too much time in processing loan and that is causing me delay in payment to builder causing interest rate and other issues. This is really problematic as you loose on your time as well as processing fee...
Also builder will charge you interest rate