Dear Manish,
I have salary account with ICICI bank since past 10 years and had a very bad experience with ICICI bank, Pune for home loan foreclosure and want your help to resolve it else I will lose Rs28,000/=.
I have a home loan at fixed rate with ICICI bank since Jan’2007. Till past week outstanding amount was near Rs12.8Lakhs.
When I asked ICICI person (Deputy Branch Manager) what’s the procedure to pre-close the home loan, he said to give cheque of that outstanding principal amount and there will be INTEREST charge of 2.24% on outstanding amount as my home loan is on fixed rate ( it’s comes to nearly principal amount and additional Rs28,000/= for pre-closure). They said it’s as per RBI rule to charge fixed interest rate customer and waive off floating rate customers.
I was surprise to know this rule and I think it’s discrimination with customers with fixed home loan.
Then just something clicked and I said to ICICI employee, Is there any way to reduce interest rate charges, he said there is no way to reduce it.
Then I proposed what if I make part payments and reduce principal amount so that I have to pay less interest on outstanding amount. He said yeah you can do that, then I blasted him why he didn’t tell this so that it’s less pain to customers. He was just looking at my face and said you can keep minimum amount equivalent to 12 EMIs and pay the rest amount so that you have to just pay 2.24% interest on 12EMIs principal amount (near about Rs 4500/= ). I thanked god that atleast amount reduced from Rs28,000 to Rs4500 (but this happiness didn’t last long).
I made part payments and reduced principal amount to near 12EMIs. When I went to close the loan still they are seeing foreclosure charge of Rs28,000/=.
Even Deputy Branch Manager was surprised and when he called up their helpdesk , he got to know as per ICICI bank rules “Foreclosure charges will be 2.24% interest on the remaining principal and part-payments amount made in last one year”.
He was in shock to know the exact rule for foreclosure charges, I told him I am not going to pay Rs28,000/= as you gave me incorrect information, you wasted my time and effort in it. He told he will check with higher level if they can waive it off. Bank manager was on leave that day and this person was his backup.
Next day when bank manager came I explained him the situation and he agreed that there was miscommunication from his employee (Deputy Branch Manager).
Now even bank manager is saying I have to pay Rs28,000/= as it’s per rule. I told him your employee/ Deputy Branch Manager only doesn’t know the correct rules and giving false information to customers, how can your bank customer will get fair services?
I asked for the complaint register then bank manager said let me try once more and will get back to you in 2 days.
Now, I am sure they will not find any solution and will ask to pay Rs 28,000/=
Please let me know whom should I approach to resolve it. Should I approach to consumer court or RBI to resolve it, any pointers/help will be appreciated.
I have sold my house and closing loan by using this money.
Regards,
Prakash