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ICICI Bank to pay customer Rs 55,000 for not informing about resetting loan interest rate

The customer said that rate of interest, displayed as 14.85% in loan account, was never agreed upon and claimed that bank officials never informed him about the change in interest rate.

, TNN|
Oct 17, 2019, 11.52 AM IST
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(This story originally appeared in on Oct 17, 2019)
HYDERABAD: A district consumer forum has directed ICICI bank to pay Rs 55,000 to a consumer for failing to inform him about resetting of rate of interest on home loan.

The complainant, Raj Kumar R, submitted that he availed home loan of Rs 30 lakh with a floating rate of interest from ICICI Bank located in Financial District, Gachibowli, in 2006. He said that when the loan was sanctioned, the interest rate was 9.25% with fixed EMI of Rs 38,410 payable for 120 months.

He added that he had been paying EMIs regularly and was under the impression that the bank would stop collecting EMIs at the end of 120th month. However, when he checked his bank statements, he noticed that he paid a total sum of Rs 49.73 lakh in 136 months. He brought the issue to the notice of the bank and sought details.

Raj Kumar submitted that he was shocked to notice that only Rs 17.93 lakh was deducted from the principal amount and outstanding payable amount was Rs 28.73 lakh. He said that rate of interest, displayed as 14.85% in loan account, was never agreed upon and claimed that bank officials never informed him about the change in interest rate.

Raj Kumar claimed that he issued several notices to the bank, but his concerns were not addressed, so he filed this complaint.

The bank representatives, in their written version, submitted that as the complainant agreed for floating interest rate, it is susceptible to change from time to time as mentioned in the loan agreement as well as sanction letter. They said that they had sent intimations periodically to the complainant whenever there was change in the rate of interest and there is no excess EMI collection from the complainant.

During the trial, the bench noticed that although the bank claimed to have sent intimations to the complainant about change in rate of interest, they did not file any evidence to support their claim. “In the absence of documentary proof for communicating with the complainant whenever a change of interest rate occurred, it is difficult to believe the stand of the opposite parties on this aspect,” said the bench.

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