They disburse loan very fast with minimal documentation. But you are getting into a trap if you fell for there low floating interest rates.
· Took loan in July 2006 at floating rate of8.75%.
· Within 15 days interest rate was increase to9.25%.
· Current interest rate is 13.25%. I have seenincrease 5 times from them in last 2.5 years. But no decrease.
· Most of the banks are reducing interest ratessince September 2008 but not ICICI.
· There cost of funds(PLR) goes up every time RBIincreases Repo rate, Reverse Repo rate, CRR and Bank rate. But it doesn’t goesdown when RBI reduces these benchmark rates.
· For new customer, they would reduce the interestrate but not for existing customer.
· If you approach them for reduction, they willask you to pay 0.5% of outstanding principal as fees.
One of my friend took loan from them in Sept 2003 @ 7.75%. He is paying interest rate of 14.25% currently.
Please beware of them and approach other banks for home loan. It is worth taking pain to get loan from nationalized bank.
Regards,
Amit