ICICI Bank Ltd
Penal Interest on Personal Loan

I am employee of ICICI Bank and has taken personal loan at subsidized rate of 2.5%.

As per the loan agreement if an employee leaves the organisation before completing 3 years of his services he has to pay the interest @ 8% instead of 2.5%.

I have joined the bank on 07 Nov

Resigned from the bank on 29 July

Last working date 10 Sept (i.e before completion of 3yrs).

Now there is a change in the HR policy which states that instead of 8% penal rate of interest the rate will be 15%, which will be applicable to all the employees who ahs resigned after 14th July while the loan agreement says penal rate of interest will be 8%.

Now, my last working date is approaching and they are asking me to pay the difference of interest retrospectively @ 15% which is not legal & logical.

The bank is thinking of making profit from each source, whether it is legal or illegal.