I had taken a loan from HDFC at a floating rate. When the interest rates increased last time my EMI and tenure was increased. Now I have read that HDFC interest rates have come down by .25 -.5 percent. Should my EMI or tenure not be recalculated based on this decrease? Why is it that my floating rate inc but it does not decrease ? Am I being cheated by the bank.
Re: Will reducing interest rates cut down my EMI or tenure ?
by Vijay P. Satpute on Mar 11, 2011 03:33 PM Permalink
Of course it should decrease with the decrease in the Interest Rates. How ever it may require a Request letter from your side.
I had taken a home loan of Rs 9.50 lacs from ICICI Bank in 2003 and and the full amount was disbursed to me. Subsequently the letter issued by the bank for claiming Income Tax rebate, reflected Rs 7.90 Lac only as the final amount disbursed. As an honest customer, I brought this to the notice of the bank officials and visited the bank more than ten times to get this anomaly rectified. Even after number of visits and lot of persuasions, only the amortization schedule was amended and the disbursed amount was being shown as Rs 7.90 Lac. Finally, I had to approach Sh KV Kamath through e-mail who got the corrective action was taken and a new loan account number was allotted to me.
Recently when I compared the home loan interests being charged to the existing customers by ICICI bank and other public sector banks, I was surprised to learn that ICICI was charging 12.50% whereas most of the public and private sector who are charging only 11.25% to 11.75%. The same bank i.e. ICICI bank is extending fresh loans to the new customer @ 12% interest. It is only the existng customers who are bearing the brunt of high interst rates.
Hoping that the Bank would show some consideration for the honesty shown by me, my request to them to reduce my interest rate to 12% as a special case, fell on deaf ears as they do not seem to have any have any consideration for the honesty.
Had I not brought out the anomaly, I would have been richer by a whopping Rs 1,60,000/- !
RE:ICICI BANK - NO USE SHOWING HONESTY TO THEM !
by miraj on Aug 25, 2007 10:49 PM Permalink
People move to ICICI bacause of their hyped service. You would not have become richer, ICICI guys would have caught you any way
RE:ICICI BANK - NO USE SHOWING HONESTY TO THEM !
by Shamsher Dhull on Aug 27, 2007 10:59 PM Permalink
By the time they rectified the anomaly, three financial years account closing had lready taken place. I do not think they could have ever noticed that. Anyway it was my own concious that made me visit the bank more than ten times and finally the Email to Sh KV Kamath that solved the problem amd not the efficiency of the bank. After all I would say that let the ICICI Bank go its own way we should no lack honesty.
Dear Swapnil, I plan to take a new Home loan of about 13 lacs for tenure of 6 years with a fixed interest rate of 14%. I have few queries related to tax benefits related to Home loans. I visited http://www.indiahousing.com/tax-rebate-on-home-loans.html where it is mentioned that one can avail maximum tax benefits upto Rs. 2.5 lacs i.e. Rs. 1 lac [Sec 80C] Rs. 1.5 lacs [Sec 24b]). I have few queries related to the second option i.e. Interest paid on the home loan.
With this portfolio, I have to pay in all Rs 19 lacs from my pocket i.e. Rs 6 lacs goes as an interest to the bank. I heard that Banks normally squeeze out maximum interest during the initial period of your tenure. Is this correct?
How do I calculate "Interest paid on the home loan" per year? I assume it like: Interest Amount (per annum) = Total Interest on Loan / Tenure i.e. 6 lacs / 6 yrs = Rs. 1 lac per year. Am I right in my assumption? Please clarify.
Will bank statements (loan statements) clearly specify the interest amount and the principal amount for that year? Or do I need to explicitly collect this document from Bank?
Is it wise to go for a Home loan with shorter (say 6-7 yrs)tenure or longer tenure (10-12 yrs)?
i have taken a home loan from icici bank on floting intt rate in 2006.that time raete of intt was 8.50% now they have increased it to 12% howvere When RBI have directed tobank cut down the intt rate for loan upto 20 lac they decraesd the rate of intt to 11.50% only for new customer not to the existing custoer.is this fair business ethis. or cheating with the customers
RE:cheating with customer by ICICI BANK
by TheWiseGuy on Aug 18, 2007 01:08 PM Permalink
Not just home loans, in other issues also, ICICI Bank is going haywire.
In credit cards, they are found to be playing tricks, almost on border line of frauds. There are complaints about home loans. We had an experience with a transaction where money paid by our customers to ICICI Bank for onward remittance to us was lying with them for more than four months.
Only after a very long and bitter follow up, we could realize the money. And the matter closed there, as if nothing had happened, no reply to our complaints.
They are going deaf and dumb.
There are so many employees (so called executives) who just do not know the basic procedures, but just do the sweet talks.
It is competing very hard with SBI to provide a horrible banking experience.
RE:cheating with customer by ICICI BANK
by Drunken Monk on Aug 25, 2007 10:20 PM Permalink
Hello every one, wat a coincidence. I thought of writing abt my bad exp with ICICI tho with a suspicion that it may fall in diff category (not under home loan). After all lootings and robbery it looks like ICICI has started robbing common man's money from their savings account. Few days back I tried to withdraw money from ATM, the transaction has failed in one ATM. But the next day I checked my a/c in diff location, all the time it had deducted the money from my account. I am keeping on calling them, still there is no proper response. They are intentionally putting me on hold or cutting the line (saying that I am not responding, or my voice is not audible.etc). I suspect they using my money for someother reason. By the way can some one tell me is ther any bank that allows online fund transfer between different bank accounts. like ICICI does Thats is from ICICI to Indian bank etc.,
This is the only reason I am still holding my a/c with ICICI.
I am ready to join a protest against ICICI, if some one can organize... I am really fed-up with this bank. atleast create awareness.
PSU bank will not have such malicious intent tho they lack in customer service.
RE:RE:cheating with customer by ICICI BANK
by Drunken Monk on Aug 25, 2007 10:30 PM Permalink
one more thing. the reason for my suspicion is bcos it appears that such things are more organized than just an occasional machine flaw. How come an ATM works for many and not for few(yes there was one more poor chap, standing in the ATM to complain for the same reason). This can happen only in India !!
RE:cheating with customer by ICICI BANK
by shiva ram on Aug 25, 2007 11:17 PM Permalink
what ever may be..... i dont know what u think,,,,, this icici bank easily cheat their customers bcz i also borrowed for housing loan from icici bank at 2003 at rate of int 7.75% but now 12.75% is any bank cheat their customers like these?????????????
RE:cheating with customer by ICICI BANK
by ramya sridharan on Aug 25, 2007 11:36 PM Permalink
Hi. This is regarding your question about transferring money online from one bank to another. Nowadays most banks allow this type of transaction. I have personally used this facility with HDFC and Citibank.
RE:cheating with customer by ICICI BANK
by saket jhunjhunwala on Aug 18, 2007 12:48 PM Permalink
It is a fair business ethics. Please understand that the interest rates are market driven, the base rate is decided by the RBI and banks charge over that. If one specific bank charge too much on the higher side then the business will suffer so that will not happen. The banks may differ by 25 to 75 basic point in general, based on there liability class, balance sheet size and operations costs. Please understand that banks are not there for charity. there are shareholders and they expect the banks to make money, so they will charge a higher rate to make money and not high enought to go out of business. The issue is that many people look a much higher exposure with respect to home loans, based on the assumption thatthe rates will be low for ever. Now that the rates have goe up, they are facing the heat, they did a wrong analysis at their end.. banks and economy cant be blamed for that. Lets get real and objective in oor approach.
Mind you I am not a banker and never worked with any bank, I just take a fair and neutral view on the scenario based on my knowledge of Finance and Economics.
RE:cheating with customer by ICICI BANK
by prasanna kumar mishra on Aug 25, 2007 10:10 PM Permalink
I can understand that the Banks are not there for charity. But I fail to understand one thing when the interest rates go up they increase it citing RBI guidelines. But when gudelines say to reduce it, it must be passed on to the customers, be it old or new customer. Offering a lower rate to new customer and ignoring old ones is not fair. This is a plain cheating by the bank be it ICICI Bank or any other bank.
I completely disagree that this is a fair business ethics.
as i have borrowed 6 lakh from icici during dec-06 at 9.25% for 20year. now the interest rate is 11.75% and tenure to 25years, because of heavy interest amount, i made part payment of 3 lakh. now tenure has come down to 6 years. can i make full payment and sit down? because i am afraid of interest rate going up, because when i took 6 lak at 9.25% i got to pay 12.37 lakh in 20 years, when it went to 11.75% i got to pay 18.57 lak in 25 years.
Sir, I took a loan of 3 lacs from SBI under Fixed intrest rate of 7.75. Is this rate of intrest is fixed upto 15 years or it may change at any time. If SBI changes fixed rate will they send intimation? Pl. clarify
RE:Fixed Intrest
by R K on Aug 18, 2007 11:51 AM Permalink
If the agreement says 'Fixed Rate' the bank has no right to change it, but some PSU banks are known to retain a vague right to review even a fixed rate under the 'fine print' conditions. I think you need to read the agreement carefully to find out.
