Vinodchandra (Executive) 21 September 2016

Home loan floating interest rate

Dear Sir, I have availed mortage loan from ICICI Bank Ltd with Floating Rate Interest of 9.6%. First Borrower is my wife and second co-borrower is myself. The EMI is deducted from my saving account every month. When Loan is approved in last december-2015, Interest rate is 9.6, and now this time I inquired rate of interest is 9.4%. So, my question is in Floating rate why bank not automatically reduce EMI or tenure of period. Bank told me that you have to pay convesion fees of Rs.13900/- against remaining loan amout is 2410000. Second thing If I am first owener of loan, they charged only Rs. 3500/- of conversion fees, while my wife is housewife and that's why they charged convesion fees higher than of me and amount is Rs.13900/-. So, I do not understand the meaning of Floating Interest rate beacause they not automatically reduce interest rate or tenure of EMI and addition charged conversion fees. Pl. Sir, Clarify.

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3 Replies

(Guest)

Why r u trying from icic bank.better try from sbi bank or nationalized bank

SIVARAMAPRASAD KAPPAGANTU (Retired Manager) 22 September 2016

Sir, The question raised by you is procedural. You may seek proper clarification from ICICI Bank. If you are not satisfied about the reply, you can always take the help of Banking Ombudsman to get clarification/relief from the Bank. You may click on the following link to know better regarding Banking Ombudsman Scheme of Reserve Bank

https://rbi.org.in/scriptts/FAQView.aspx?Id=24

Before initiating action, send a request letter under Registered Post Acknowledgement Duet through Post Office (not by courier howsoever big that may be) addressed to the Chairman of the ICICI Bank explaining your reasons for clarification.If you do not receive reply, within reasonable time, you may initiate action duly submitting the related documents like your letter and acknowledgement received from Bank etc. as per the procedure noted in the above FAQs by Reserve Bank of India.

G.L.N. Prasad (Retired employee.) 22 September 2016

ICICI is not a small bank in India and is having service back up by most eminent legal experts and the floating rate is not a new concept and time tested over a decade. All rules and regulations are frame within the frame work of RBI directives and a Bank like ICICI can not go against RBI directives , as they have more exposure in housing loans and even the leader.

If you are not happy with the laid down rules and regulations , opt for changing the loan to some other bank which you wish.