ICICI Home Finance Ltd
Tenure & Interests Rate of home loan

I have taken a loan from ICICI Bank Home Finance Ltd in 2005 for an amount of INR 1400000 on Floating Rate of interest at 9.5 % p.a at that point of time for a tenure of 20 Yrs. My EMI at that time was INR 11300/- p.m. I have already completed 4 years of repayment of my loan tenure by today in 2009 without failing a single EMI till date.

The first point of concern is that the current rate of Interests as of 8th December is showing as 11.5 % p.a which is much more that the rate other banks are offering and is declared by the RBI.

The second point of concern is that my tenure has been increased from 20 yrs to 23 yrs even though I have already completed 4 years of repayment from 2005. My initial EMI was 11300/- p.m which was increased to 14825/- p.m for last 2 yrs and is now at 13825/- p.m in todays date. The bank is not reducing the Floating Rate of interest which is now at 11.5 % p.a even though instructed by RBI. Also, they asks to pay lump sum in order to reduce the interests rates as well as EMI. The banks are taking major advantage from this kind of loan and there is no authority to intervene & help common person.

Company: ICICI Home Finance Ltd
Country: India

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