ICICI Home Loans
Arbitrary rates of interest

Dear Sir,

I am holding a loan account with ICICIbank, since April. My loan ac no. is LBABD00000669400. Thinking that I would get better service from the bank and an early loan, I applied for a loan of Rs. 9000000 on a floating interest rate of 7.25%. The EMI worked out to be approx 7600/- and I was quite comfortable in paying that EMI for a period of 20years. The ICICI bank agent who visited me assured me that on every change of rate of interest my EMI would be effected accordingly. I am presently holding this loan for a period of 4 years and during these years, the rate of interest has changed several times. Whenever, the RBI announced a hike in the rate of interest, my loan rate of interest was also hiked, but I noticed that when RBI reduced the repo and repo reverse rate, while most of the banks reduced their rate of interests, ICICIbank never did so and gradually over the years my rate of interest climbed from 7.25% to 14%. So much so that in one month it changed two times from 13.5% to 13.75% to 14%. However, with the latest repo rate cut being announced by the RBI, to my relief I came to know that finally after much dilly dallying, ICICIbank also decided to cut its interest rates on home loans. But the very next day to my horror I found out that it was only on NEW HOME LOANS and upto 20000000 only. This biassed policy of the bank is not understood. Why the old customers are left high and dry and continue to pay exhorbitant EMIs and the advantage is passed to the new gullible consumers (who are also likely to suffer at the ICICI banks hands sooner or later). I was disillusioned completely and hope that the bank changes its policy and be more pragmatic and genuine. It is charging the highest rate of interest on home loans as compared to other banks in the same category. Sir, I am a modest salary earner and cannot afford such a high rate of interest, nor do I have the means of paying off the loan instantly. Now I am stuck with a bone in my mouth and do not know what to do.

My simple dream of owning a house after my retirement has come to naught and I just hope that I could own a house in my lifetime and my family members are not harrassed after I have left this world. It is just like mediveal period of Sahukars who used to suck the blood of poor villagers. Please advise me what to do.

Yours faithfully,

Vikas Bhatnaga

Company: ICICI Home Loans
Country: India

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