I had taken a home loan from ICICI bank during the year 2004.The total loan amount was Rs 6, 87, 000.By the time the interest of the loan was 7.5% on floating basis.By that time my EMi amount was around Rs 6500 for a tenure of 20 years.
During the course of time the loan FRR interest rate started raising gradually and it went upto 13.5% during 2007.Whan ever there was an increase in the rate of interest I used to receive a communication from ICICI that that the interest has increased and my EMI tenure has been increased by certain period which is understandable.
But during 2008 and 2009 the FRR rates started decreasing and at some point of time it came down to as low as 8%, but whenever there was a decrease ICICI bank never communicated the issue. As a customer i was thinking that ICICI would have reset the interest % and also reduced my loan tenure accordingly. With this background I continued paying my EMIs.
But by 2010 when i approached ICICI bank for a part payment of the principal amount I demanded an amortization statement to know my principal amount, I was shocked to know the principal amount was almost tha same as that of the borrowed amount. I was also shocked to notice that the interest rate I was charged was 13.5 % for the entire tenure even though the FRR rates have reduced upto 8%.
I approached the manager to get a clarifiaction regarding this issue, he said I should have approached the bank earlier with the option to reduce the interest rate. He also said they couldn't reset the interest any more as the scheme was over.
Then I decided this was a cheating issue and i thought that I should take this issue to the core. But one of my friend advised me to repay the loan and receive my house documents and fight for it otherwise it will be very difficult to receive the documents in good condition. So i thought I should wait till I repay the loan and receive the documents.
I repaid the loan last month and recived the document in good condition. Now i think it is high time to fight back. So please advise me how should i proceed in this isuue.
Regards
S. Ganesh Ram
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