ICICI Home Loan
Unfair Practise Floating Rate of Interest by Banks

I have taken home loan (A/C No: LBNOD00001256018) from ICICI bank on Floating Rate of Interest. The Bank gave me loan on 7.5% Floating ROI in Mar. The ROI calculation shown to me is (FRR (9.25) - Discount (1.75) = Floating ROI (7.5)).

After 3-4 days, my friend (works in same company) took the home loan from ICICI bank for same type of developer flat and he got Floating ROI of 7.5% (FRR (9.75) – Discount (2.25) = Floating ROI (7.5)).

After that I complained several times to understand this unfair practise of Floating Rate. The Bank representative only talks about FRR and don’t want to talk regarding discount component. However it has two components to control the customer Floating rate of interest. First one is FRR (which has some kind of transparent process) and second component is Discount (which is entirely controlled by Bank. No transparency).

Now bank is giving home loan of Floating Rate of Interest of 9.75% and calculation is FRR (13.75) – Discount (4.00) = Floating ROI (9.75).

I would like to know on what basis Discount of 4% given to new customer and is this factor also depends upon time then what is the meaning of FRR.

If the bank has fund to give loan on 9.75% then why FRR has been kept on 13.75 to cheat old customer.

Company: ICICI Home Loan
Country: India

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