I took a Housing Loan from ICICI, Hosur (Tamil Nadu) in the year 2002. Later on, on March 24, I took a Top Up Loan of Rs.1, 20, 000/- (LBHSR 00001280932) @ 9.50% with an EMI of Rs.1254/- repayable in 180 installments. Since then, EMIs are regularly paid through auto debit. Occasionally, there was slight increase in EMI amount due to hike in interest rates. Up to this point, it was a normal hike here and there which I was comfortable. Last week, I got a shocker from ICICI through an SMS informing that my EMI has been increased to Rs.1394/- and as on 31st January, number of EMIs remains at 355 months, i.e., a whopping 30 years! If you add up the 60 EMIs I have already paid, it will be 355 60 = 415 months! In this scenario, my total repayment to ICICI will be approx. Rs.5.40 lacs, which amounts to 350%. Initially, I thought this is an error on the part of the bank. I approached the bank for a clarification and, to my surprise, they clarified it is not an error but very much a reality. Isn't it ridiculous? If I have to go by their statement, by the time I finish the last EMI, I will be 81 years old! (Further increases are likely which I have not considered). Accordingly to ICICI, to reduce the loan period, I have to repay some money towards principal amount. I wanted the EMI to be increased in such a way that more amount goes to the Principal Amount and simultaneously, number of EMIs comes down. But bank insists lot of documentation, including pay slip, etc. It is ridiculous again! They can increase EMIs and the amount for that matter, without the consent of customers, but when it comes to serving the customer, they will put a spoke in the wheel. In last 5 years, I paid almost Rs. 78000 towards this loan but only 7000 rupees have been decreased from the Principal amount! Is it justifiable? Does ICICI bank have the moral responsibility to follow banking ethics?
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