Existing customers of ICICI will also face the rate hike
By Joseph Samson
Oct 30, 2008
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The home loan rates of ICICI Bank were revised upwards for the new customers of the bank but sources said that rates had been increased for the old customers as well.

On October 10th ICICI had raised the interest rates from 12% to 13% at the time of very tight money market conditions. However these new rates were only applicable to new customers. The bank is viewing its cost of funds before taking any decision on lending rates.

Now it is said that the bank new rates would be applicable to the existing customers as well. The bank has not raised its benchmark rates and therefore the interest rates for old customers cannot change. But despite of this fact, bank has raised the rates for the old customers. This was revealed when a bank executive from ICICI called a customer to inform about revised interest rates.

ICICI Bank is not the only lender who has quietly raised its home loan rates. Even Standard Chartered Bank has silently raised its home loan rates by 100 basis points to 13%. This hike will be applicable to both the new and existing customers of the bank. A spokesperson from StanChart said, "We have raised home loan interest rate in early October 2008 by 100 bps. The rise was in response to market conditions and industry trend. The rise has been made applicable to customer accounts over a phased period depending on when they had availed of the loan."

The new rates of StanChart will come into effect from November 1st.


(Comments Posted : 4) Post Your Comments
1. Weaxydathiday xaikalitag Eviflefrarf - iziananatt neireecic CoalGyday
Zikinellelmmwqf (Posted: Jul 5, 2013)
2. ICICI bank is the biggest theif in our country. They have double standerds like "Sabjiwalla in sabji mandi", "rs11/kilo bargain they will give you in 10.5".
Gopal Rohra (Posted: Nov 5, 2008)
3. I am also one of the victim of rate hike from ICICI, when i took the loan in the year 2006 November, it was 9.5% and since then it has started moving higher and higher and presently i have been charged with 13.5% which is the highest in the industry.
even if i transfer this loan to any other bank ICICI still demands me to pay 2.25% of the existing principal amount, which until now the same from the date of commencement of my loan, and that 2.25% works out to 1 year payout that i would save by switching over.
i am sure that ICICI is not going to lower their rates in future as well, because now their goal is not towards increasing loan portfolio, their main goal is to increase deposits and mobilize savings through S/B A/c's. so please please do not opt of ICICI for any new loans.
Pradeep (Posted: Nov 1, 2008)
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