POSTED BY August 3, 2012 4:44 pm COMMENTS (7)ON
I opened a ICICI home loan (LBBNG0000139549) in 2005 and pre-closed in Feb 2012. I was at fixed rate of interest from Nov 2011 till Feb 2012. As I was on fixed plan, at the time of loan closure, i was levied a penalty for pre-closure.
I was charged twice, first for plan conversion (in Nov 2011) and next a penalty in Feb 2012 for pre-closure. During the plan conversion, I was not briefed by the ICICI staff, that penalty is applicable in Fixed plan. Again during closure in Feb 2012, I was not given an option to move back to floating, to avoid / reduce the penalty.
Due to urgent requirement, I had to sell the property and hence i had to close the loan. I was forced to agree to pay the penalty, to clear the loan. I was on fixed plan only for a short period of 3 months. I did not gain advantage of fixed rate, as I had to pre-close the loan due to urgent family needs.
I should be given exemption against pre-closure penalty for the following reasons:
1) When I took the loan in 2005, it was on floating rate.
2) The pre-closer penalty is not applicable to floating rate loans.
3) My loan was on a temporary “fixed” plan, at the time of closure. But, I have already paid the conversion charges from floating to fixed. I have been charged twice, once during conversion and again once during loan closure.
4) I closed the loan from my personal funds. Hence I should not be charged a penalty.
5) NHB circular is directing banks not to charge pre-payment penalty on all floating-rate home loans or pre-closure of fixed-rate home loans through own sources. My loan should be treated as a floating one (as it started in 2005). And I used my personal funds to close. Hence penalty should not be levied.
My requests or complaints for refund of the penalty is not favorably considered by ICICI. I strongly feel, I am unduly charged by the bank, by making use of the opportunities and circumstances. Is there any way to get refund of the penalty ?
Contact me for any clarifications on 98450-21087 or firstname.lastname@example.org