Hi,

My husband and I hold a Home loan with ICICI, when we took the loan the floating rate of interest was 11.75%, within the span of 4 years this as increased to 14.75% which is absurb when rest of other banks or ICICI itself charges its new customer interest rate of 11.50%. My loan account number is LBMUM00001560043. Due to above reason we thought of making partial payment but their was not impact on EMI instead bank informed us that
" due to increase in floating rate our original tenure has also increased from 20 years to 40 years, so due to repayment of Rs. 75000, now our tenure is back to 20 years with no change in EMI".

It's a pain because it is our hard earned money and every time you think of repaying loan partially they bring back to square one by reducing tenure back to 20 years which is already inflated by 20 odd years ahead.

Now due to above reason we decided to fully repay it, for which we need to submit request to various other banks where the rate of interest is low, and other bank would need NOC letter and prepayment letter from ICICI, we requested bank same on 9th Jan 2012. ICICI have already assumed that 9th Jan 2012 is date of repayment and if we do not repay our loan by 10th Jan 2012, they are going to charge us extra Rs.611.5/- per day after 9th Jan till we repay the loan.

This is sheer harsement as we are yet not sure which bank will provide us with loan, just requesting for document should not be assumed that the loan is preclosed and they start charging us interest, I am afraid, next month we will have to pay monthly installment + daily 611.5 charges which comes to Rs. 18956 + Prepayment penalty 32983.79 ?

In such a scenario, how do a common man think of repaying loan ever? please advice.