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Ravi Luthra (Director)     10 November 2016

Rate of interest on home loan

I have availed a home laon from ICICI bank in 2005 at a floating rate of 7.75% for 15 years.during the course of time the bank has been regularly increasing the rate of interest and has been charging 14.75% from last few years. the emi has also increased from Rs. 22822 to Rs.28770. the bank has also arbitrarily  increased the tenure of loan. The current rate of Interest charged to me is extremely exorbitant @ 14.75%. Whereas the current rate of interest charged by other bankers range between 9-10%.

More surprising element is that the bank have always increased the rate of interest with the increase in repo rate by RBI but have never  reduced the rate in case of any reduction in repo rate while all other bankers have been increasing and reducing the rates with corresponding increase or reduction in the rates by RBI.

Even after paying huge instalments for 10 years, my principal loan amount is more or less the same. Shocking facts are reflected in the statement of accounts supplied by the  bank

The rate of interest reminds me of the old times when it was impossible to escape from the clutches of money lenders and money lenders like sharks would usurps the property of poor people mortgaged with them as according to the statement of bank I will have to pay for next more than 20 years, although I have taken loan for 15 years only and have regularily paid for last 10 years.

kindly help with the legal remedy available to me. I had even requested the bank for reduction in interest but they insist on buying an ICICI lombard policy to reduce the interest.

Ravi Luthra



Learning

 14 Replies

adv.bharat @ PUNE (Lawyer)     10 November 2016

You can make complaint of it to RBI and Bank ombudsman for forcefull sale of policy.

Ms.Usha Kapoor (CEO)     11 November 2016

yYou  complain to RBI and Bank Ombudsman for relxation of high interest rates.If you appreciate this answer please convey my forum  thanks by clicking the thank you button.

G.L.N. Prasad (Retired employee.)     11 November 2016

First get the agreement and copy of sanction letter to know whether you have opted for fixed or flexible options.  Take assistance of your charted accountant as to whether Bank has followed the laid down norms.  (Bank can not make a mistake as the system in puts are uniform and checked several times)

Then file grievance and as well  complaint in their on line portal and as well send hard copy by Regd post.

This type of notice is mandatory for both CP Act and Ombudsman petitions.

Then hunt for those banks who can lend you with lesser rate.

Give them application for getting the account transferred to any bank of your choice as per the norms.

follow Ombudsman complaint for violation of terms.

 

 

rajeev sharma (Advocate Ex senior manager law )     12 November 2016

i agree with Mr Prasad. PLease check that all your ib\nstallments are paid onor before due dates and the bank is not charging any penal interst

icicibankcare (Bank)     16 November 2016

Dear Mr. Luthra,

We regret the inconvenience caused. We request you to email us your concern with your contact details on care@icicibank.com. Please mention the UID (
a3m33f) in the subject line of your email. Our official will assist you.

Regards,
ICICI Bank Customer Service Team

G.L.N. Prasad (Retired employee.)     16 November 2016

While we appreciate the concern of ICICI, it is always proper for them to re-post the facts as resposne after hearing from his side.  Now the poster has levelled allegation and it remains in the forum, unless facts are given by bank as clarification at the end to close the thread.

The following last sentence by member is certainly causing a concern as Bank is cross selling the products and linking them for a bonafide redressal.

\"I had even requested the bank for reduction in interest but they insist on buying an ICICI lombard policy to reduce the interest."

Please also clarify, whether  member posted the issue without actually seeking redressal from you.

Ravi Luthra (Director)     16 November 2016

Dear Mr. Prasad,

thanks for your concern, I have appraoched the bank for reduction in Interest by paying the applicable fee. ICICI officers had visited my office and have very clearly stated that as a policy, the reduction in rate of interest is only done on purchase of one of the  Insurance policy of ICICI Lombard. I have mentioned this in my complaints to ICICI but they have sent very evasive reply without addressing the issue of force selling of Insurance Policy and also without addressing other issue of unexplained penal interest. the complaints were escaleted to higher authorities but still no clear response recieved.

regards

Ravi Luthra

Ravi Luthra (Director)     16 November 2016

Dear Mr. Prasad,

thanks for your concern, I have appraoched the bank for reduction in Interest by paying the applicable fee. ICICI officers had visited my office and have very clearly stated that as a policy, the reduction in rate of interest is only done on purchase of one of the  Insurance policy of ICICI Lombard. I have mentioned this in my complaints to ICICI but they have sent very evasive reply without addressing the issue of force selling of Insurance Policy and also without addressing other issue of unexplained penal interest. the complaints were escaleted to higher authorities but still no clear response recieved.

regards

Ravi Luthra

rajeev sharma (Advocate Ex senior manager law )     18 November 2016

serve a proper notice on the bank and if they do not reply you may approch banking ombudsman

Ravi Luthra (Director)     22 November 2016

dear ICICI Customer care team,

In response to comments on my complaints, I have already sent a mail on the email mentioned in your reply on 11th Nov 2016. i am waiting for a reply from you. 

thanks

Ravi Luthra

Ravi Luthra (Director)     30 November 2016

dear ICICI Team,

your reply is still awaited, you not even replied to my email sent to you in response to your comments at this forum. will appreciate a proper and quick response from you.

thanks

Ravi Luthra

Ravi Luthra (Director)     14 January 2017

Dear all,

I have written many emails to ICICI but each time they are giving vague reply and are not replying to the issue of forced selling of insurance policy and arbitrary penal interest. 

since they continue to avoid direct reply and they tried to force sell their insurance policies and till today they continue to charge 14.75% interest on my home loan, I will like to seek the advice of the learned members of the forum on the following:

CAN I APPROACH THE COMPETITION COMISSION OR ANY OTHER APPROPRIATE AUTHORITY AS THEY USING THIER DOMINANT POSITION TO FORCE SELL THE INSURANCE POLICY.

I will eagerly await your suggestions and advise.

Ravi Luthra

G.L.N. Prasad (Retired employee.)     14 January 2017

Regarding Home Loan, you can approach Ombudsman, after issuing notice to them on such deficiency of service or failure in agreement terms and conditions.

If there is breach in agreement and Bank is charging higher rate of interest more than the agreed and signed documents as on date of sanction, you may approach after issuing notice to Bank about their failure.

According to my knowledge, no bank dares to break agreed terms.

The final remedy is contact a bank of your choice and get your loan transferred to them if the other Bank agrees wity your interest terms.

Jitendra   29 January 2017

Best option is talk to other bank for takeover of your home lone.

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