We recently decided to transfer our home loan from an existing nationalized bank to ICICI ’cos the rate of interest was lower and we heard their processing is fast and hassle-free. But what we encountered was totally different.
Here are the 10 reasons (or the hassles we encountered) on why you should not go for a home loan from ICICI!
#1. No ’’executive’’ contacted us even after registering a request with their customer care thru’ the hotline (5208 8000). We had to call and register thrice before we had some call us. We also found out that we get re-directed to different cities (like Hyderabad) even if we call the Chennai hotline number.
#2. The ’’executive’’ knocked on our doors at 7 A.M on a Sunday morning when the appointment was at 10.00. He did not even have the courtesy of calling us before coming. We thought it was the milk man!
#3. I suppose the ’’executive’’ had come directly from his sleep. He was shabbily dressed and nothing about him indicated that he was an ’’executive’’ by any standards. 3a. Could not speak English. 3b. Mumbled most of the time. 3c. Could not answer any questions related to home finance. The ’’executive’’ had very little knowledge on home financing. He could not even give us the EMI for a certain amount of loan for a certain period. He could not explain to us the how the loan would be processed and the process of sanctioning.
#4. The ’’executive’’ asked for one new document every week. He asked for only about 5 documents ’’required’’ for application initially. Then every week he came up with a new document that needs to be submitted. We got lost! We asked him for a complete list of documents that need to be submitted and he said he’ll call back in 5 minutes. That 5 minutes never passed. We had to call him again (after 3 days)to see what happened!
#5. Not ’’The execuive’’ this time! The evaluer or the person assessing the property visited at 2 pm on a week day afternoon. I had taken off on that day as I wasn’t feeling well (luckily) and was at home to open the door for him. Otherwise, we would have been rejected the loan. No one even bothered to call us up to inform the evaluer was to come. BTW, no one even informed us that there is such a process!
#6. One of the last few docuements the ’’executive’’ asked for was a list of documents with the bank where we currently had our home loan. Since the bank would not entertain such request without a supporting documentation, we repeatedly asked the ’’exectuive’’ to give us a letter requesting this. He took just a little over 3 days to even let us know if this was possible(that too after we called up) and another 3 days for handing over the letter.
#7. The ’’executive’’ expects you to sign all the documents even before the loan is sanctioned (including the agreement!!). The documents include a Irrevocable power of attorney (on bond papaer) to collect the documents submitted to the existing bank! You ask him any questions.. he just reads out the text from the document. You ask him to fill the blanks in the agreement (a BOOK containing about 30 pages) with the applicable rate of interest, the charges etc., he tells you that he can do it only after the loan is sanctioned, but expects you to sign it then & there!! The height of it all.. the statement we got from him... ’’No one so far has asked me any questions on the document they have to sign. They just sign in all the places marked ’x’’’!!.
#8. The ’’executive’’ expects you to hand over 3 un-dated blank cheques, each of which containing an amount equal to one-third of the loan amount! This he claims is for security purposes! He can’t even answer the question on if they undertake not to present this cheque for payment.
#9. The ’’executive’’ required Rs. 300 to get the Encumberance Certificate (EC) from the Registrar Office on the same day when he himslef claims that it can be got for Rs. 150 on the next day. We tell him that it is not urgent, he does not relent. He wants Rs. 300!
#10. After all this, our loan got sanctioned. We repeatedly asked the ’’executive’’ for a photocopy of the documents we have signed so far and the agreement with all the details (rate of interest, charges, EMI, etc) filled in so that we could go through it before signing, he lands up with an agreement with just our names filled in (probably that’s what he knew!) and a photocopy of parts of the documents we had signed!
We fell into the trap, ’cos we thought that home finance was also part of ICICI Bank. Only later we got to know that it was ICICI Home Finance Ltd., a wholly owned subsidiary of ICICI Bank! I have not had any problems with my account in ICICI Bank and that was precisely the reason why I recommended them to my husband, but everything went wrong right from start! I do not know what we are going to encounter once we sign the agreement and start repaying the loan!!