Hello,
I am an NRI and I took an ICICI home loan for Rs 18 Lakh back in 2004 at 8% Fixed Interest Rate for 10 years period (Loan A/c No. LBDEL00000930162). That meant I had to pay Total Interest of Rs 820676 over & above the Principal amount of Rs 18 Lakh.
I was interseted in Pre-closing the loan and therefore I recently contacted ICICI's NRI services number (914023128925) for clarity on my Outstanding Principal (On which Pre-Closure Penalty of 2.21% would be applied by ICICI Bank).
To my utmost shock, I was informed that my Outstanding Principal Amount (in case of Pre-closure) after having paid 55 out of 120 Instalments (i.e., 46% of EMI's) was still going to be Rs 11, 48, 849 (i.e., 64%). That meant that despite paying 46% of EMI's my Principal Payment is considered as Only 36%. Rest is adjusted towards Interest.
In other words, clearly they WILL NOT RE-CALCULATE OUTSTANDING PRINCIPAL in case of a Pre-closure of the Loan. i.e., They will charge me MUCH MORE IN INTEREST THAN IS LEGAL BASED ON THE REVISED TIME PERIOD OF LOAN due to Pre-closure.
I would request you to kindly help take this matter up with ICICI Bank or let me know the Consumer Forum where my representative can physically take this up through the right process.
Regards,
Vijay Kumar Watwani
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