I would introduce myself as one of the idiot Indian who has done a life time blunder by taking the "ICICI Home Loan". I have never seen such a greedy bank in my entire life. ICICI is the perfect modern example of the earlier sahukars which treat borrowers as servant and let them dies slowly. This bank made his own policies and procedures and dont care about the RBI and the government. The activities of the management are to treat the borrowers as bonder labor and cheat them with the higher lending rates. There floating rates can be best termed as "Forwarding Rates" which moves in one direction i.e. Northwards. I share my example with you all:
I took a home loan of around 2000000@9% (20 lakhs) in September. At that time HDFC was offering me the 9.5%. I choose ICICI over HDFC just to save couple of thousand rupees towards processing charges. Then started the fastest and the steepest process of increasing the rates for the exisiting borrowers:
Feb - 50 basis point
Apr - 100 basis point
May - 100 basis point
July - 75 basis point
Sep 2008 - 75 basis point
Now my lending rate is at 13% even after RBI cuts the CRR by 350 bp and Repo rate by 250 bp (As on Dec 22). In some cases the loan tenure is increased from 20 to 40 years. You can find lots of blogs on the internet. I have completely lost my faith in ICICI bank and there products.
The ICICI management is misguiding not only the people of India but also the Media, RBI and Govt, they only speaks that we'll reduce the rates but they are never delivering it. Evertime they says we are watching the liqudity situation and review the rates later on, they are just diverting the attention of public and passing the time. I dont understand how many years this bank require to watch the liqudity situation. Almost all the banks have lowered there lending rates. Even the Chanda Kochar said in one of the interview that the cost of funds are same for all the players of the industry..they why they are not reducing the rates. This is because ICICI has linked all the Home Loans to the PLR and they dont want to loose the huge interest income. Irony is that despite so much crook activities, the media gives so much attention to ICICI bank and never expose there cheat activities. They are lowering the rates for the new customers just to trap them and harass them later on as we are facing now.
I sincerely request on behalf of all the idiot Indians like me to save us from ICICI bank. RBI/Govt please ask the public sector banks to take over the existing home loans of ICICI banks.
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