ICICI Bank
NEVER TAKE A HOME LOAN FROM ICICI BANK LTD!!!

ICICI Bank will always offer the lowest rate in the market for new customers and as such they gain the maximum market share since a lower interest rate easily attracts customers since its a life time investments for most and even a small difference in the interest rate makes a BIG difference.

The interest rate is pegged to a PLR (Prime Lending Rate) so they usually offer a higher discount to the PLR to new customers and therefore resulting into offering a lower interest rate than the market.

Once the customer has availed of the loan, thats when the real story unfolds. For a floating interest rate loan, the PLR only goes up and never goes down!!! At the slightest tightening of the CRR or SLR, the PLR is increased and as such your floating interest rates increase. Not much can be done by the customer since the PLR has gone up and discount %age from the PLR is constant or fixed as per the agreement.

But whenever the interest rates in the market go down in the market due to the liquidity increase or other factors, the PLR remains constant but the discount rate for ONLY the new customers is increased as such bringing the effective rate of interest for them lower than what the older customers are paying!!!

So many time you will find, as a old and loyal customer, you are paying almost 4% higher ROI than what a new customer is paying to teh same bank for the same loan.

Also, since there are penalties involved with prepayment and also, reluctance of customers to change banks due to the large sums of money involved with home loans, the customer keep losing Large Amounts of money due to this cunning strategy of the Bank!!!

NEVER TAKE A HOME LOAN FROM ICICI BANK LTD!!!

Company: ICICI Bank
Country: India

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