ICICI Bank is cheating all existing customers. Shifting home loan to PSU bank is the only alternative to ICICI customers. They were quick to increase interest rates, but not bothered to decrease it after RBI rate cuts. The interest ratesoffered by PSU banks is nearly 4% lower than ICICI.
That means you can save approximately Rs.5000 per annum per Lac on 15 year term.That means if anybody has taken 10 Lac loan from ICICI, then he will save around Rs 50, 000 per year in interest payment.
If you are still continuing with ICICI Bank, then don’t complain. Just shift. If thousands of customers start shifting the Home Loan to PSU Banks, then ICICI will stop cheating.It is heard that ICICI Bank is threatening customers wanting to shift loan to PSU bank with a penalty of 2%.
But please note that according to the consumer court ruling ( Source :II (2008)CPJ 166 ), Bank cannot charge penalty for transferring the home loan.According to the ruling, the transfer of loan is considered as takeover and not a closure.
So if they threaten with penalty or if they charge penalty, please approach consumer court. This case was published in the newspaper "The Navhind Times" on 2-1-2009 as given in the magazine "Insight" published by CERC. The reference of this case can also be obtained from Consumer Education &Research Centre (CERC), ’SurakshaSankool’, Thaltej, Sarkhej-Gandhinagar Highway, Ahmedabad-380 054(INDIA) Phone: 27489945-46, 27450528, 27438752-53-54 FAX: 079-27489947 Email : cerc@cercindia.org