I and my husband were considering buying a flat in Bangalore and approached ICICI for a home loan. All our papers were in order and we were sanctioned 45 lakh loan. We were also told that the registration cost would also be met.
With that surety, we went ahead and paid an advance to the owner for resale of a two bedroom flat, costing us 50 lakhs.
ICICI told us that the property will be valued, mere formality, and then the loan amount will be decided. When the independent valuation was done, the property was valued at 40lakhs. Before two years, the property was sold at 38 lakhs by the builder. It is impossible that it is valued so less in two years when we know how property prices are rising in Bangalore. So, we were told that we will be given a loan of 36 Lakhs and registration will not be covered. This left us in a real soup, as we were not in a position to raise the rest, which was 10 lakhs+ registration+ woodwork etc.
We have always been prompt with our taxes, payments of credit card bills, paperwork and careful with money, so this caused a lot of anguish. On top of it, the sellers were going to leave the country, and it was all the more embarrassing to tell them that we would not be able to buy the property.
What completely put us off was the way ICICI created the situation. I have reasons to think that the valuation was purposefully done less, as we were told that we can get rest of the money as personal loan! Please note, interest rates on personal loans are much higher.
We were also told by ICICI, if we wanted to register the property in both our names, we would be charged extra few thousands! As far as I understand, there is a drive to help make women own property and there was a plan to make the surcharges less in such cases.
Similarly, my sister in law who lives in Kuwait had also applied for a loan to buy a piece of land in Kerala. She had paid the processing charges to ICICI and an advance of Rs. 3 lakhs to the seller, and her husband was to fly to India when in the last minute they were told that the land is under panchayat, outskirts of a a city and not within municipality area, and so ICICI would not be able to process the loan. Is this information easy to miss out? Something like category of land, should ICICI not have checked this earlier?
Also, the sellers had also taken a loan from ICICI, and have you ever heard of having to pay a penalty if you are able to repay the loan earlier than the desired time!
I had found an ICICI credit card in an ATM once and since I was going to the bank the next day, went to return it. The person at the desk almost told me that this is not his job and I should go down 3 floors and return it to some one else! I wonder if it is worth being good to ICICI.
To top it all, we got a sms early in the month telling us that such and such amount be deducted for EMI! When we called the customer care to communicate that we have not taken the loan, we were told “don’t worry, the amount wont be deducted.” Not understanding that we must not be subjected to this sms at all!
We approached Axis Bank and the whole thing was done in ten days time.
Please think twice before banking with ICICI.