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eshwar (clerk)     22 January 2012

Home loan tears - icici bank


Hi Sir,

I have taken a home loan to purchase a flat in 2007 with ICICI BANK. The bank has sanctioned, home loan of 90%(30 lacs), of the actual price of the flat. While taking the loan, the bank has mentioned it has a flexible interest rate and said," for first 3 years, i will be paying the interest and after that, only the principle will be taken and no interest will be charged". 

But now, even after 5 years, they are charging me the interest, and still, not even a single penny is paid towards the principle amount. The interest i m paying now is nearly 16% in 2011(Rs.45,000/-), which is more than double the money, that i used to pay in 2007(Rs.25,000/-). But, in these span of 5 years, my salary has increased only 10%.

Now i am married, i cannot pay this much heavy interest(also, if i pay this amount, i cannot survive with family). I have no other source of income, in case of emergency. It looks like i m trapped, now that i cannot sell the flat nor i can pay this huge interest. And now if i calculate, the interest i paid towards bank comes to around 15 lacs, just as interest. Due to my personal problems, even if i delay the emi for 1 day, bank is sending the collection agents to my house.

Please help,if there is a way to resolve/settle and come out of this burden.




 5 Replies

Sailesh Sarmah (Advocate)     22 January 2012

The 1st thing you should do is go through the Loan Documents (the Documents which you signed while taking the loan). See the clauses.

Kumar Doab (FIN)     22 January 2012

As advised by Mr. Sarmah kindly study your loan application and loan agreement. If either of these has not been provided by the bank, you are within your rights to obtain certified copy under seal and signature of the bank without any fee. You may submit a letter to concerned BM in writing under proper acknowledgment and demand its supply by redg/speed post only.

The bank and its staff shall not agree to verbal staements now. However if you can establish you may lodge your greivance with the redressal mechanism of the bank in writing.

You may evaluate the option of take over by another institutions including LIC housing finance, offering lower rates and compare the total amounts to be paid by you including processing fee etc.

Kindly look into the attachment.

Rate of Interest of ICICI fixed and floating, is one of the highest.

How is an EMI calculated?

EMI Formula: l x r [(1+r)n /(1+r)n-1 ] x 1/12
l = loan amount
r = rate of interest
n = term of the loan

The interest rate can be annual reducing, monthly reducing, and daily reducing.

Comparison should be made by the total amount to be paid by the borrower keeping the term same for various institutions.

Deduction under Section 80C of the Income Tax Act
The portion of the EMI paid towards repayment of principal amount of the loan can be deducted from income. The borrower can get a tax deduction for a maximum amount of Rs. 1 lakh each year under this section irrespective of his tax bracket.

Deduction under Section 24(b) of the Income Tax Act
The interest paid towards home loan is treated as an ‘expense’ under ‘Income from house property’ and is deductible under Section 24(b) from the total income of the assessee. The maximum deduction permitted under this section is Rs.1.5 lakh per annum.

Attached File : 337279569 home downloaded: 165 times

subodhkumar (proprietor)     22 January 2012

hello eshwar,

normally speaking about home loans they are generaly calculated as principal amount plus interest for the years you have taken loan for and the the instalments are set which are called emi which are same equally divided for no of months which are deducted from your salary account ,

what you are saying that intially you paid about 25000/-pm and now you are told to pay 45000/-pm inspite as per your say that you paid regulary all three years then your balance outstanding will be less and you must be pay less if you loan is of reducing balance type and not emi .

you first check at branch manager and demand the account statement and thereafter look into the details and verify with the payments you have made

later next you demand for the copies of documents, contract,agreement, terms and  conditions etc....


e mail :

icicibankcare (Bank)     27 January 2012

Hi Eshwar,


We regret the problem caused to you. Please send us your contact details at and we shall get in touch with you soon. Kindly refer '2629268' in the subject line.



ICICI Bank Customer Service Team

Kumar Doab (FIN)     27 January 2012

@ Eshwar,

Kindly update in the forum the relief and resoloution by the bank.

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