I have taken home loan (LBHYD00000992064) 5 years back, and opted for floating rate of interest. Subsequently, whenever there is a hike in interest rates, the bank immediately raises the interest rates without intimating the customers. Whereas, when RBI recommends slashing of interest rates, ICICI Bank, dont do it immediately nor they communicate to customers. Finally, when we approach the bank, we were asked to apply using a form for decreasing the interest rates along with certain amount of Fee say Rs.4000 plus (I paid around Rs.4000 plus, since I took loan of Rs.10 Lakhs, for 20 yrs repayment). Now, inspite of paying this Rs.4000 also, whenever, there is subsequent interest rate hike again, the No. of EMIs go up. That means whatever we paid is just waste, and no transparency in its dealings. They dont communicate to me on any of these developments. The EMIs are going up.

A typical situation is like this, for those who opted for floating rate of interest, and after paying for couple of years say, 5 years, with the effect of interest rate hike, again, we are in a loop of paying the same no. of EMIs i.e., we end up paying extra 50 EMIs with interest rate changes. Whoever have opted for Floating rate are at big loss. At the time of taking loan, there was only 0.5 percent difference between Floating Rate and Fixed rate of interest. And, that time there were rumours that in India also, based on Sri Narsimhan committee's recommendations, the interest rates are further going to go down, to match with European markets, and most likely the interest rates may further go down to 5-6 percent, now it looks it is all to confuse the customers and the customers end up in paying the EMIs for lifelong.
Moreover, for my friends who have taken similar amount from other banks say HDFC/Syndicate bank, after paying same no. of EMIs at same rate of interest (market rates), their Principal portion is reduced more than what ICICI bank has reduced for me. That means, the ICICI bank customers are paying more interest, and less of principal amount through their EMIs. This is again, to collect more interest on the outstanding principal amount.

Through this forum I urge, ICICI bank to send me the complete transaction history, and also when they have increased the interest rates (and attach RBI instructions as such) and let me know the outstanding EMIs also.

regs
Srinivas Raj B
LBHYD00000992064