Reply From ICICI BANK

Dear Mr. Shetty,

We refer to our telephonic conversation today. We understand your concern, however we wish to inform you that the FRR/PLR is decided based on the changes in the cost of funds for the bank. We look at the long term impact on the cost of funds for the bank before effecting any increase/decrease in the FRR/PLR.The rate of interest depends upon the offer available at the time of disbursement of loan.

The conversion scheme which is offered to you is the additional benefit, where you can reduce your rate of interest. As a service gesture, our existing customers are provided with an option to conversion to a more beneficial margin in case the same is being offered by the Bank. This switch in margin has cost implications for the Bank including, but not restricted to, operational costs. Therefore the switch is offered only on payment of a switch fees and carrying out necessary documentation to the satisfaction of the Bank.

Further, the Rate of Interest applicable for your Loan account number is the best that can be provided as on date. With regards to the reschedule of your account we would like to inform you that ICICI Bank has not made any downward revision in the interest rate. Hence we are unable to process your request.Our commitment is to always offer the best deal to our customers.

We request your co-operation.Looking forward to more opportunities to be at your service.

For any further grievance with respect to your query, please write to *STEP 3* through the "Complaints" option at our website or write to headservicequality@icicibank.com.

Sincerely,

Rucha More
Customer Service Manager
ICICI Bank Limited




Reply to ICICI BANK

Rucha

If ICICI bank doesn't want to follow the RBI regulation to decrease the Rate of interest on my account then I need to escalate the matter to RBI

Please let me know you want me to follow the above condition ?


Reply from ICIC Bank

Dear Mr. Shetty,

We understand you concern, however we wish to inform you that these offers are not proactively informed to the customer.

The FRR/PLR is decided based on the changes in the cost of funds for the bank. We look at the long term impact on the cost of funds for the bank before effecting any increase/decrease in the FRR/PLR. And we are unable to do any downward revision for your account. We request you co-operation.


Sincerely,

Rucha More
Customer Service Manager
ICICI Bank Limited


Reply to ICIC BANK


Richa,

First thing is I am not interested in knowing your special offers, if your bank is genuine it should offer mechanism to reduce the interest rate automatically the way it automatically increases the rate of interest & not wait for customer to call & ask for reduction in interest rate.

This is the general practice follows by other banks who follow ethics

As per the floating loan rule if my interest can increase on my account, why it cant be decreased based on PLR?

Reply from ICIC Bank

Dear Mr. Shetty,

This is with reference to your e-mail dated 23rd January, 2012 to Mr. Krishnan Govindan with regards to your query pertaining to the Rate of Interest Loan account number LBMUM00001523700 .


We would like to inform you that the home loan availed by you vide loan account LBMUM00001523700 is under the floating rate. As per the facility documentation executed by ICICI Bank with borrowers, it has been clearly mentioned that floating interest rates are subject to changes, dependent on the change in Floating Reference Rate ( FRR ) and that the borrower is under an obligation to pay interest at such reset rate of interest, as is notified by ICICI Bank from time to time; there has been no violation of any of the provisions of the Indian Contract Act 1882.



We wish to bring to your notice that ICICI Bank offers floating rate loans to its customers. With a view to ensure transparency a Floating Reference Rate "FRR" was introduced for determining the rate of interest"ROI" for floating rate loans. This ensures that borrowers of such floating rate loans have a transparent rate based on which the interest rates on their loans are reset on a periodic basis throughout the tenure of the loan. FRR is linked to ICICI Bank's cost of funds and appropriate cost of operations for the relevant product, credit charge and margin.


In the view of the above, the effect of new rate ( increase / decrease ) of interest has been given in the above home loan account.


Further, the conversion scheme which is offered to you is the additional benefit, where you can reduce your rate of interest. As a service gesture, our existing customers are provided with an option to conversion to a more beneficial margin in case the same is being offered by the Bank. This switch in margin has cost implications for the Bank including, but not restricted to, operational costs. Therefore the switch is offered only on payment of a switch fees and carrying out necessary documentation to the satisfaction of the Bank.


The Rate of Interest applicable for your Loan account number is the best that can be provided as on date. With regards to the reschedule of your account we would like to inform you that ICICI Bank has not made any downward revision in the interest rate. Our commitment is to always offer the best deal to our customers.



We request all applicants visit any nearest ICICI Home loan branch with Photo ID proof and speak to our customer service officer regarding Rate of Interest special offers. We request your co-operation.Looking forward to more opportunities to be at your service.



Sincerely,
Rucha More
Customer Service Manager
ICICI Bank Limited




Initial Issue

This is inform you that , i have spoken to Manish Tari regarding my home loan interest rate and he said that I need provide the processing fee 0.5 % for reducing my interest rate from 11.75 to 10.5.
But as per the RBI guide lines the floating interest rate home loan should be reduced and increased as per the PLR rate but this is not happing in ICICI bank and every time I need to pay 0.5 % for reducing the interest and the same thing i have done for last time and i paid the processing charge 0.5 %, hence I request you to look in to the issue and provide the proper justification on the same or else i need to take to the matter to RBI body.