ICICI Bank Home Loan
Part prepayment accounting

Hello,

I have a housing loan with ICICI since last 3 years. I have made part prepayment twice so far, the latest one on Jan 9th. They said there are no prepayment charges (which was agreed while taking the loan itself) but when I asked about when will this get reflected in my account, they said it will be only effective from March 1st!! They say this is because my EMI cycle is 1st of every month (it is dedcuted auto debit on 1st of every month from my account) etc., which I really did not understand...

The fact is that, I am losing out on about 50 days of interest on the part prepayment that I made!! because the part prepayment cheque is already cleared from my a/c and till March 1st the bank will be simply holding that money and earning interest on this.

I feel that bank is just playing around with the clauses to earn money. When I took the loan I was told there are no prepayment charges but they have took an alternate path to charge for this.

I believe thousands of customers are cheated (in a official way!!) like this as normally these things can not be noticed by a ordinary customer who may not be so good in accounting.

Company: ICICI Bank Home Loan
Country: India

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