I am having a housing loan from ICCICI BANK. I WANTED TO PREPAY YHR LOAN BECAUSE THE RATE OF INTEREST CHARGED BY THE BANK WAS QUITE HIGH AS COMPARED WITH OTHER PLAYERS. THERFORE I DECIDE TO PRPAPAY THE ICICI LOAN AND REPLACE THE SAME WITH OTHER ONE. BUT FOR PREPAYMENT I HAD TO BEAR THE PREPAYMENT CHARGES WHICH IS 2%.

I AM WONDERING HOW COME A CUSTOMER HAS TO PAY PENALTY FOR PREPAYING THE LOAN. INSTEAD THE CUSTOMER SHOULD BE GIVEN A DISCOUNT IF HE/SHE WANTS TO PREAPY HT ELOANS. IN CORPORATE BANKING SYSTEMS, THIS IS THE PRATICE. HOWEVER IN RETAILS LOANS, I AM SURPRISED HOW COME SUCH PENALTY IS CHARGED.

SECONDLY THERE IS A RULE IN THE ICICI BANK ALSO THAT A CUSTOMER CAN NOT PART-PREPAY THE PERSONAL LOANS THEY HAVE TAKEN FROM THE BANK. EITHER THE CUSTOMER IS SUPPOSED TO MAKE EITHER FUILL PAYMENT OR NIL. THIS IS ANOTHER HARD HITTING PRACTISE ON THE INDIVIDUAL LIKE US.

KINDLY LOOK INTO THE MATTER AND DO THE NEEDFUL.

ALKESH G
9821074027

Originally Posted by alkesh

I am having a housing loan from ICCICI BANK. I WANTED TO PREPAY YHR LOAN BECAUSE THE RATE OF INTEREST CHARGED BY THE BANK WAS QUITE HIGH AS COMPARED WITH OTHER PLAYERS. THERFORE I DECIDE TO PRPAPAY THE ICICI LOAN AND REPLACE THE SAME WITH OTHER ONE. BUT FOR PREPAYMENT I HAD TO BEAR THE PREPAYMENT CHARGES WHICH IS 2%.

I AM WONDERING HOW COME A CUSTOMER HAS TO PAY PENALTY FOR PREPAYING THE LOAN. INSTEAD THE CUSTOMER SHOULD BE GIVEN A DISCOUNT IF HE/SHE WANTS TO PREAPY HT ELOANS. IN CORPORATE BANKING SYSTEMS, THIS IS THE PRATICE. HOWEVER IN RETAILS LOANS, I AM SURPRISED HOW COME SUCH PENALTY IS CHARGED.

SECONDLY THERE IS A RULE IN THE ICICI BANK ALSO THAT A CUSTOMER CAN NOT PART-PREPAY THE PERSONAL LOANS THEY HAVE TAKEN FROM THE BANK. EITHER THE CUSTOMER IS SUPPOSED TO MAKE EITHER FUILL PAYMENT OR NIL. THIS IS ANOTHER HARD HITTING PRACTISE ON THE INDIVIDUAL LIKE US.

KINDLY LOOK INTO THE MATTER AND DO THE NEEDFUL.

ALKESH G
9821074027

Dear Alkesh,

We have made a note of your contact details and will be contacting you soon in order to resolve the issue.

Regards,
ICICI Bank Customer Service Team.