Private sector lender, ICICI Bank, has reduced its interest rate for home loans of Rs 20-lakh and below to 11.5 per cent.So if you had a "floating rate loan" which has a less than 20 lakh balance, you get no izzat. Despite the fact that your loan also qualifies, along with any new such loans, as "priority sector lending", which is why the bank reduced the rate in the first place. Point is, you can't complain - either put up or shut up."We have revised our interest rate by 1.5 per cent from 13 per cent to 11.5 per cent," an ICICI Bank spokesperson said.
This cut will, however, be applicable for only new home loans, the spokesperson said.
Floating rate, my foot. It only floats upwards.
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>Never take a loan from ICICI the rates only go up and never down! + Try refinancing! God it really is a big hassle in India! I think RBI should put guidelines and encourage refinancing. Thats the only way these banks are going to learn.
Dont know if there is a blog on loans in India! I want to see if I get any of the benefits as I now have less than 20L outstanding on my loan.
12.07.08 at 3:27 PM
>I too agree with anonymous. if you have all proper papers and can spend an extra week for follow up initially, never take loan from private sector banks including ICICI.
going for public sector banks will pay you handsomely in longer run. i had good experiance with SBI. they make sure that all papers are proper (which is in your favor ensuring that you are not cheated by developer) and also does not give 100% loan (it make sure that you do not over spend on your house and are within your budget)
couple of private sector banks i find exceptions are AXIS bank (formerly UTI bank) and HDFC bank. anyday they are much better that ICICI in terms of HOUSING loans.
12.08.08 at 6:23 AM
>Encouraging refinancing is a good thing as said by Anonymous.A 7.5% loan for 240 months taken in 2004 has now floated to 13.5% for 340 months.By getting it refinanced from PSU bank( most are at 10%),the tenure falls to 240 mths as thats maximum a bank can lend.Thats 3.5% down and nearly 100 mths knocked off. Interest savings huge as compared to penalty and proceesing fees.
12.08.08 at 6:14 PM
>There is seems to be lot of negative thinking about the private banks in India, some of it justified like loan recovery agents. But still they are the best to bank with compared to public banks. I have taken a home loan at 8% fixed from ICICI. They never changed it sticking to the promise that it is fixed for life. It is all about understanding the documentation and risc you are willing to take. You cant have your cake and eat it too. Either you go for customer frienliness and beurocrasy of public sector or profit oriented and easy to bank with private sector
12.09.08 at 6:32 AM
>@Anonymous – which part of *new* loan you dont understand. This new rate is applicable for only new loan. (your less than 20L loan is out of equation)
THIS IS BAD!! :( :x … this is close to stealing/dacoity …. somebody should file public litigation or something.
12.13.08 at 5:55 AM
>ICICI Killing Machine for Existing Home Loan Customers
The ICICI is never going to reduce the loan rates for existing customers. They are the biggest cheat in the country. KV Kamath, the ICICI head and CII president is the number one crook…he speaks in the public that banker should reduce the interest rates, but his bank never reduce rates. There cheap strategy is to give loan at low rates to new cutomers and increase thereafter immediately after some months. They are openly cheating the customers of India. This is really pathetic that both RBI and Govt does not take action against there crook activities. The best think is all the customer of ICICI should protest aginst the bank in the front of RBI building, this will force the RBI to hear the ICICI customer problem and media will also get active. All the ICICI Home Loan Customers should transfer there loans to public sector banks. I know the ICICI create problems if someone tries to transfer there loans to other banks.
Everytime ICICI management says, we are watching the liquidity situation and will review the rates later on and then they never reduce the rates. This is just to divert the attention of the customers and the media. Irony, is that the KV Kamath says different thing and Chanda Kochar says opposite of that. This is because KV Kamath is the head of CII, he always says good thing but never delivers that.
Funny part is he is saying banks should reduce rates, but his ICICI is not reducing the rates.
I dont understand, why the cost of funds are not coming down for these private banks despite huge Repo Rate and CRR cuts by the RBI. They are just fooling everyone and earning huge interest income by not reducing the interest rates.
12.19.08 at 9:32 PM
>Icici home loan is like a big trap.
Don’t take it.
All banks will reduce interest rates, but icici never.
Kamat is like man with more words no action
Tuglak
01.02.09 at 2:49 PM
>When I applied for Home loan in ICICI the rate is 10.5%, the first month they increased it by 0.75% and it shooted up to 11.25%, then after 2-months again 0.75% they increased, so 12%… now they have decreased only 0.5%…. their equation is increasing by 0.75% and decreasing by 0.5% only… I think whatever loss they incurred in overseas stock investment they are taking from us… like politicians who increase the petrol cost for their own luxurious life
01.15.09 at 2:04 PM
>This is unfair that ICICI is not passing on the benefit to the existing customers. Let us sign this petition against this
http://www.petitiononline.com/bagla27/petition.html
Please ask the readers of your blog to sigh this petition and make it successful
03.06.09 at 5:04 PM
>I still fail to understand why the good intelligent people of India being the customer of ICICI take it to courts as they are the one who were the best and today the beast, fit for nothing today, each time the RBI does somethign good, its MD comes and says “we are adopting a wait and watch policy” at teh cost of public money and her her own money. Legally there is many provisions to counter these stupid non-sense decisions so instead of arguing and counter replyign why dont people of India take these cheaters to court, after all SBI and ICICI are governed by the same Indian government so if all the banks can reduce rates why is these guys sitting on someones else money and eating the bread by way of cheating, jago grhak jago…
03.07.09 at 1:10 PM
>Jubin: Note that just because ICICI isn’t reducing rates doesn’t make them cheats. No one can force them to reduce rates.
You have every right to take your money elsewhere, or move your loan.
03.07.09 at 1:14 PM