I am a Pensioner and my son has availed housing loan from icici bank in Aug 2007 a/c no lbhyd00001587379 for rs13.64 lacs @11.25 %payment of EMI is regular.Now they have increased interest rate to 14.25%. where as it is 11.25% for new loans.So far we have paid interest of Rs6,52,134 and pricipal reduced by only Rs37,433.
Now we want to dispose of the property to meet our financial needs. we are not getting a good price here (hyderabad- due to disturbances)The bank wants us to pay foreclosure charges of 2%+10%st amounting to Rs35000/ which is highly burdensome for us. As RBI have already issued circular in Sept 2011 to banks not to charge prepayment\foreclosure charges can we get guidence from you as to how to convince the Bank against charging penalty.

Dear Ajit,

We have made a note of your home loan account number. We'll contact you and work to address your issue at the earliest.

Regards,
ICICI Bank Customer Service Team

Dear Madam / Sir,

I am holding a loan account with ICICI Bank and my loan account number is LBMUM00001527311 and the amount borrowed was Rs.9.50 lakhs. Following is my complaint :

1) On Saturday (October 22, 2011), 2 days after NHB made a press release on prepayment charges, I went to close the home loan held by me at ICICI Bank Borivali West, Mumbai branch. I was in for a shocker as the ICICI official mentioned that my loan was booked by Bank and not by Home Finance so there shall be no waiver of prepayment charges. Till date any query on this loan, I was made to run to Home Finance department, all my paperwork, loan fulfillment and everything was done by Home Finance department and now all of a sudden there is this change in stance.

I feeled cheated and fooled by the way the bank has changed its stance. Its my earnest request to please assist me in seeking a refund of the pre payment charges. I have no other words to express my anger, am sure you understand the plight in gathering sums to repay the loan and a extra sum of 18000 does cost us a lot in the recent torrid times.

Please look into the matter as I would look forward to a revert from your end, for me you are the last hope.

Regards,
Ajit Gandhi
Mobile : 9820040796
Email : ajitgandhi77@gmail.com

Hi,
I also agree with Ajit and also have the same concern regarding the pre closure charges. I have taken loan from Hyderabad and hold a floating rate home
oan with ICICI Bank (LBHYD00001463751). I am planning to for close the loan and when enquired the customer care they told me straight away that the I need to pay the fore close charges which are 2.2 % of theoutstanding principal which I feels really insane because as per the RBI Circular even ICICI needs to follow the waiver in case of fore closing.
Now i am really frustrated with ICICI because when the RBI increase the rate of interest , they are the first one to increase their rate before any other bank does.


Regards,
Arun Kumar
974799662

Hi,
I also agree with Ajit and also have the same concern regarding the pre closure charges. I have taken loan on floating rate from Hyderabad ICICI Bank
(LBHYD00001463751). I am planning to foreclose the loan and when enquired with the customer care they told me straight away that I need to pay the
pre-closure charges which will be 2.2 % of the outstanding principal which I feels really insane because as per the RBI Circular even ICICI needs to follow the waiver
in case of fore closing.Now i am really frustrated with ICICI because when the RBI increase the rate of interest , they are the first one to increase their rate before any other bank does.

Regards,
Arun Kumar
9741799662

[QUOTE=getarun79;171466]Hi,

I agree with Ajit and also have the same concern regarding the pre closure charges. I have taken loan on floating rate from Chennai ICICI Bank
(LBCHE000000625926).

I am planning to foreclose the loan. I went to a HF branch in Selaiyur, ICICI bank. Palani, who is handling the Home Loans has informed pre-closure charges will be 2.2 % of the outstanding principal despite my reminder that per RBI Circular ICICI needs to follow the waiver

His argument iss he is yet to receive any circular from head office. He has shown a challan for gathering the preclosure charges(29 Oct) despite RBI circular.

Is this not illegal?

If ICICI insists on preclosure, what shall be done to collect the preclosure money?

Regards,
Arun

I have an ICICI Homeloan LBCHE00000625924, which I wanted to preclose. I have talked to Palani, (mobile 9176031034 ) the home loan officer in ICICI Branch at selaiyur, Tambaram, Chennai to preclose.


He has refused to cancel the preclosure amount and has demanded to pay foreclosure. He has shown the foreclosure amount he has collected for Loan today at 29 Oct 11.


I have cited him RBI guidelines recently in 2011.


His contention is that ICICI branches have not received any circular on foreclosure waiver and hence he continue to collect it. is this not the duty of ICICI employees to gather proactively o gather such information?


If icici collects the preclosure against government regulations, is that not illegal?


Please inform me how can I get the preclosure waiver suggested by RBI.


Thanks
Arun

I am a Pensioner and I have availed housing loan from icici bank in 2004 for rs 50 thousand @8.67 %payment of EMI is regular.Now they have increased interest rate to 16.67%. where as it is 10.5% for new loans.So far we have paid complete loan ampount FOC on 29/10/2011 of Rs 27744 in this ampount bank charge me 2.21% preclouser charges in we have taken a loan and till date we have already paid approx 57000 and now we pay 27774 but they charge me 2.21% charges on my account .
. As RBI have already issued circular in Sept 2011 to banks not to charge prepayment\foreclosure charges can we get guidence from you as to how to convince the Bank against charging penalty
We have already closed my account on 29/10/11 icici bank madahv nagar branch ujjain…..in this account they already charge 800 rupees of check bounce and penalty so they recivied approx 1400/- extara ..
No one ask to icici for same and mentally tartaure to the customer….also they told me we can do…please give me a writing than we will give you answer after 7 days…
I am a Pensioner can some one help me….and reverse my extra money from ICICI
Regards
Om Prakash Trivedi
98936-35235

I am have a floating rate home loan from ICICI. Its account number is LBNOD00001256018. 6 Months back i requested ICICI to increase my EMI from 14927/- to 30000/- as they start increasing ROI. But Now I have made some part payment to lower the amount and request to lower my EMI back to 14297/-, they saying its not possible. Is this a fair Practise.
I also saw, a guidelines from NHB and RBI that there will be no preclosure charge for floating rate customer and also if customer paying from own source then there is no preclsoure for fixed customer too. Even the same statement written on ICICI Home finance site.
I asked similar question from ICICI Customer Care. But you will be surprised by their answer "We inform you that your loan is through ICICI Bank Ltd and not from ICICI Home Finance Company."
How cleaver the bank is : We always goes to ICICI home finance office to make part payment, now they are seperate when they got opputunity to fool customer.
Request RBI, NHB and Customer to be aware how bank cheats.............Take stict action ... I am wrong, please clarify why we were sent to ICICI Home finance company.Even representative said "ICICI Asset Servicing Branch Company". why he is asking to go Asset Service Branch(Whats written on Top of that branch, its not ICICI bank clearly) if taken loan from ICICI bank
-------------------------------------------------------------------------------------------
Dear Customer,
We thank you for writing to us.
We inform you that your loan is through ICICI Bank Ltd and not from ICICI Home Finance Company.
Hence, the wavier of preclosure charges if the amount is paid from own funds is available for the loan which are disbursed through ICICI Home Finance Company.
However, incase you are making only a part prepayment and not a closure, then there will not be any charges to make the part prepayment.
For any further clarifications, we request you to visit any of the nearest asset servicing branch and speak to the customer accounts manager.
*****
We look forward to your co-operation in helping us serve you better.
Sincerely,
*******
Account Manager
ICICI Bank Limited


-----Original Message-----
From: Customer
Date: Wednesday, October 26, 2011 10:27 PM
To: Bank
Subject: RE: Others
When you saying my loan is not from Home Finance Company's , are you saying that my loan is not from ICICI home Finance. I gave you link of ICICI home finance.
-----Reply Separator-------Dear Customer,
We understand your concern.
However, the prepayment charges will be applicable for your home loan.
The pre closure charges will not be applicable for customers who borrowed the home loan from Home Finance Company's and you have availed the ICICI Home loan.
We look forward to more opportunities to be of service to you.
Sincerely,
********
Account Manager
ICICI Bank Limited

-----Original Message-----
From: Customer
Date: Tuesday, October 25, 2011 08:39 PM
To: Bank
Subject: RE: Others
Before responding did you read the link i gave you. Its clearly mention that there will be no change for pre-closure of loan account if amount paid from onsource.
This is also new ruling form HFC
If you will say no, I am going to write to HFC.
So check my account and confirm me that if I make part-payment of 3,00,000/- in my account, there will be no change.
Don't always paste standard text.
-----Reply Separator-------Dear Customer,
We thank you for writing to us.
Part-prepayment:
There is no charge for part pre-payment. For part pre-payment, the minimum amount acceptable will be equivalent to one equated monthly instalment (EMI). The maximum amount that can be pre-paid would be the outstanding amount after retaining 12 EMIs with us.

Sincerely,
Account Manager
ICICI Bank Limited

----------------------------------------
From: Customer
Date: Thursday, October 20, 2011 08:06 PM
To: ICICI Bank
Subject: Others

Branch Id : null Account Id : LBNOD00001256018
At this HFC link (icicihfc.com/home_loan/hl_rates.html]Home Loan Rates, Home Loan Fees From ICICI Home Finance.), it clearly shows that now I can make pre-payment if I am making payment using your own source.
Kindly confirm that I can make part pre payment of 3,00,000 without any charge.

--------------------------------------------------------------------------------------------------------------------------------------------------------------------

Hi, My name is Kunal Chakranarayan. have taken a loan from ICICI - LBPUN00000610581. On calling the helpline 9890478000 yesterday, they have categorically informed me that they will charge 2 % fore closure charges as they are yet to receive the RBI circular.. i mean these guys are cheating. whenever RBI hikes the rate of interest, ICICI is the first to pass on the benefit to the consumer and send a communciation afterwards. For something that benefits a consumer, they have a standard reply that they have yet to receive a circular! No wonder they can show profit margin for Q2 if they continue such unhealthy, unfair practices
Infact when i went to reduce the rate of interest, these guys made me give all kinds of documents. they then sat on it for 1 month and then have the audacity to tell me that some of the documents are not correct and therefore it cannot be proccessed. can you belive it? i am currently the same customer who is paying them via ECS a monthly amount of 30k and they come back to saying the above.... its a classic case of the left hand not knowing what the right hand is doing.

Hi,
I am Rajesh KumarChoudhary from Bhilwara (Rajasthan) and I hold a floating rate home loan withICICI Bank (LBBLW00001682543) in 30Nov,07 of Amount 671450/-
Following are my complaints :
(1) On discussing withICICI Bank officials for pre-closure of the above stated loan on Nov4, 2011, Iwas told that I would be charged a pre closure penalty of 2%and 10.2% servicetex. On mentioning that RBI has given a press release on September 06, 2011 (Referto RBI website, press release for September 06, 2011) stating that banks arenot suppose to charge pre closure penalties/charges on floating rate loans,ICICI Bank officials flatly denied the same. I am worried as this is no way toharass a client. The interest rates are rising, incase if you want to closeyour loan you are unnecessary taxed with extra sums, which is unfair.
(2)Officials of ICICI Bank told me that they did not get anycirulars from their higher authorities and bank is not aware of any suchcirular from RBI.Their are so many complaints against ICICI Bank regardingforeclosure of home loans.So I request to takeappropriate action against ICICI Bank as early as possible and give relief tocustomers.
Thanks .........

I am Raviprasad v Bettigeri and I hold a floating rate home loan with ICICI Bank (LBBNG00001735403), there have been lot many complaints against the unjust unfair means of conducting business within Housing Finance Department to the call center
Following are my complaints :

1) On discussing with ICICI Bank call center for pre-closure of the above stated loan on October 13, 2011, I was told that I would be charged a pre closure penalty of 2%. On mentioning that RBI has given a press release on September 06, 2011 (Refer to RBI website, press release for September 06, 2011) stating that banks are not suppose to charge pre closure penalties/charges on floating rate loans, ICICI Bank call center flatly denied the same saying that they have not got the circular till date (08-nov 2011). I am worried as this is no way to harass a client. The interest rates are rising, incase if you want to close your loan you are unnecessary taxed with extra sums, which is unfair.

2) Also, for the above mentioned loan, i took a loan of 8.78 lack and from the EMI they have just reduced and outstanding is 8.56 + 2% + service tax (for pre closer)=8.81 lacks (which is more the the loan that i have taken) this is realy i dont understand how the ICICI is harashing the customer

I would request RBI and the honorable Consumer Court to kindly pay attention to my compliant and assist us against such monopolistic unfair business organisations.

Regards,
Raviprasad V Bettigeri

Dear Sir,

I have a ICICI Bank home loan account Acc # LBCAL00001670421. The outstanding principal amount on the loan is Rs 2,816,526/- (Twenty eight lacs Sixteen thousand ..). However today I have received a preclosure statement from ICICI Bank wherein they have charged Rs 62,245.22 as Prepayment charges against the same. When I asked customer care (call initiated at 2:20 PM on November 10, 2011) about the RBI circular regarding waiver of this charge since I am paying from my own source the representative said they have not received any such circular and moreover my loan is from ICICI Bank and not from ICICI Home Finance Ltd. For ICICI Home Finance the preclosure charges are waived but not for loans disbursed from ICICI Bank. They are yet to receive any circular from RBI regarding the same.

I am seeing there are so manu complaints against ICICI on the same topic and this is going on for last 2.5 months. Has anyone got any response or resolution?

I request honourable consumer court to take a note of these complaints and assist us against such unfair business practice by ICICI Bank.

Can anyone reading this thread suggest me what other options are available for consumers like us? Will it help if I meet the banking Ombudsman from RBI? Does that really help?

Regards,
Muktikanta Sendha (co- applicant)
Ph # 9861856364

Hi,

I have a similar story as many others who have complained against the practice of ICICI Bank charging preclosure charges of 2% on the home loans.

1. We have paid the processing fee at the time of sanction of loan
2. No customer would be aware whether the loan is sanctioned by ICICI Bank or ICICI Home finance, since both were operational at the time of availing the loan (2004)
3. I have checked with most of the banks including HDFC who is the No.1 Home finance provider in the market today and SBI who have confirmed that they do not
charge preclosure charges
4. As somebody has rightly pointed out, the emi is structured in such a way that a major portion of the emi goes towards servicing the interest and a very paltry sum goes
for principal repayment.
5. When the bank has ensured that the quality of the loan(asset) is not affected as the interest upto date is fully serviced, the borrower has a right to preclose the o/s principal
fully from own source of funds.

We seek the regulatory intervention to give justice to the borrowers

SKV Prasad
Loan no.
LBBNG00000748865