ICICI Home Loan
Prepayment charges & interest rate

I have availed home loan from ICICI bank (LBMUM00000886434) on floating rates in Sep 2004. Bank gave me loan @ 6.95% floating rates. Bank subsequently increased the rates. Subsiquently when the interest rates came down they brought down the interest rates up to 11.5% when they were giving fresh loans on 8.5%. When I enquiered with the bank for decreasing the interest rate atleast upto 8.5% they did not agreed.

I arranged to per pay my loan in the month of march from my oun sources. Though the bank has mentioned in the approval letter that no partprepayment penality will be applicable they charged me a panality of 2.21%.

My request in case of floating rates the rates should also be brought doun in the similar manner in which the rates has been increased.

Secondly why prepayment penality is charged though they have mentioned no prpayment part payments.

Company: ICICI Home Loan
Country: India
State: Maharashtra
City: Thane

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