I, Dr. Mahesh Vilas Mane, had taken a Housing Loan from ICICI Bank Ltd, in year for purchase of house. The Loan amount then was 32 Lakhs (approx. including home secure insurance plan). The interest rate when I took loan was 9.75%. Gradually this interest rate was hiked to 13.5% by January. After RBI (reserve Bank of India) revised the interest rates for home Loans I enquired the customer care about revision of my interest Rates..They asked me to Pay Rs.59000 (approx.) as Conversion charge to revise the interest rate which then will be about 11.5%.
The other option they tell me is that if I invest Rs.1 lack per year for 3 yrs, for which they will pay interest of 14.5%, I will have to pay Rs.16000 only.
I when asked the person concerned for what these charges stand for, the person told me that they are against the losses the bank is going to incur with the revision of interst rates.
I have following doubts regarding this :
1. Is this conversion rate a universal for all banks or is it only for ICICI Bank Ltd.?
2. Is it legal to charge the customer for changes in interest rates that are usually under regulation byRBI?
And Bank probably has no economic burden for these changes.
And if it does why there was no such charge been asked for when the Bank had to increase the rate
of interst.
3. Is it not the Banks duty to inform the customer about the change in interest rates, when it drops down.
Rather they will send letters and executives to the customer when there is increse in the interest rate.
My complain against the bak is that it is charging unnecessarily to the customer for the reduction in the interest rates which it has reduced as per RBI guidelines.
Please advice me regarding further mode of action.
Thank you,
M.V. Mane
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