Well I still feel that its all my mistake:
Mistake No. 1: Asked ICICI bank for home loan
Mistake No. 2: Did not cross-checked for 2 years.
Following is a snapshot of my Amortization Schedule .(got it online from icicibank website)
Original Home Loan Amount: Rs. 1058173
Original EMIs: Rs. 9692
Original Tenure: 240 Months(20 Years)
Installment Number - Due Date - Opening Principal(Rs.) - Installment Amount(Rs.) - Principal Component(Rs.)- Interest Component(Rs.) - Closing Principal(Rs.) - Rate% p.a. - Tenure(Months),
1 - 10/1/2007 - 1058173 - 9692 - 1535 - 8157 - 1056638 - 9.25 - 240
2 - 10/2/2007 - 1056638 - 9692 - 1107 - 8585 - 1055531 - 9.75 - 268
3 - 10/3/2007 - 1055531 - 9692 - 1116 - 8576 - 1054415 - 9.75 - 267
4 - 10/4/2007 - 1054415 - 9692 - 246 - 9446 - 1054169 - 10.75 - 412
5 - 10/5/2007 - 1054169 - 10934 - 612 - 10322 - 1053557 - 11.75 - 296
6 - 10/6/2007 - 1053557 - 10934 - 618 - 10316 - 1052939 - 11.75 - 295
7 - 10/7/2007 - 1052939 - 10934 - 624 - 10310 - 1052315 - 11.75 - 294
8 - 10/8/2007 - 1052315 - 10934 - 630 - 10304 - 1051685 - 11.75 - 293
9 - 10/9/2007 - 1051685 - 10934 - 636 - 10298 - 1051049 - 11.75 - 292
10 - 10/10/2007 - 1051049 - 10934 - 642 - 10292 - 1050407 - 11.75 - 291
11 - 10/11/2007 - 1050407 - 10934 - 649 - 10285 - 1049758 - 11.75 - 290
12 - 10/12/2007 - 1049758 - 10934 - 655 - 10279 - 1049103 - 11.75 - 289
13 - 10/1/2008 - 1049103 - 10934 - 661 - 10273 - 1048442 - 11.75 - 288
14 - 10/2/2008 - 1048442 - 10934 - 668 - 10266 - 1047774 - 11.75 - 287
15 - 10/3/2008 - 1047774 - 10934 - 675 - 10259 - 1047099 - 11.75 - 286
16 - 10/4/2008 - 1047099 - 10934 - 681 - 10253 - 1046418 - 11.75 - 285
17 - 10/5/2008 - 1046418 - 10934 - 688 - 10246 - 1045730 - 11.75 - 284
18 - 10/6/2008 - 1045730 - 10934 - 695 - 10239 - 1045035 - 11.75 - 283
19 - 10/7/2008 - 1045035 - 10934 - 505 - 10429 - 1044530 - 12.5 - 524
20 - 10/8/2008 - 1044530 - 10934 - 53 - 10881 - 1044477 - 12.5 - 523
21 - 10/9/2008 - 1044477 - 11575 - 42 - 11533 - 1044435 - 13.25 - 512
22 - 10/10/2008 - 1044435 - 11575 - 43 - 11532 - 1044392 - 13.25 - 511
23 - 10/11/2008 - 1044392 - 14000 - 2468 - 11532 - 1041924 - 13.25 - 158
24 - 10/12/2008 - 1041924 - 14000 - 2495 - 11505 - 1039429 - 13.25 - 157
25 - 10/1/2009 - 1039429 - 14000 - 2523 - 11477 - 1036906 - 13.25 - 156
Now, let me explain you, what ICICI bank can do, and what it has done with me.
Check the 2nd month interest rate. wooo. its increased to 9.75% from 9.25%.(They dont waste time, they start their practices from the next month itself). Well I dont mind the interest rate increasing, But they should inform me, right?. They says they sent me a letter.(when, how, where? I dont know). If interest rates are increasing, then they should increase my EMI first, how come they increased the tenure to 22 years)
Next 4 months the EMI was same, and check how much interest they earned and what happened to the principal component. first month principal reduced was Rs. 1535.(ok). 2nd month Rs. 1107 and 3rd month Rs. 1116. It started here and kept on accelerating. They never bothered to apply breaks thereafter.
Check the 4th installment. Interest rate again increased from 9.75% to 10.75%. But still EMI is same. and tenure is increased to. 412 months(34 years). YES 34 YEARS. principal deducted is only Rs. 246. YES ONLY Rs. 246.
5th EMI. Interest rates again increased to 11.75% from 10.75%. What should we call this? In 5 months. interest rates are modified 3 times.(On a max. it should be once in 3 months). But hurray, they sent me a letter this time saying that interest rates are increased so modifying EMI to Rs. 10934 for 25 Years. Well, my mistake, I accepted it. I didnt calculated, I thought its a good bank and they are good to me. But now when I calculate, it could be Rs. 11467.50 for 236 months(assuming to close the loan in 20 years as decided earlier).
6.Uptil 18th EMI it went smooth, I was a fool, I did not had online banking. I could have saved my money paying more EMI.(less than Rs. 1000 xtra)
Check out the 19th EMI. Interest rates modified again. 12.5% from 11.75%. They kept the same EMI, just like the first 4 months, and increased the tenure. HAHAHA to 524 months(43 Years). for 43 YEARS without informing me.
20th EMI. Interest rates again increased to 13.25% from 12.5%. My EMI Increased to Rs. 11575 for 512 months(42.6 YEARS)
For 20, 21, 22 EMI I paid a total of rs.(11575* 3)= 34725 Rs. which reduced my principal amount by Rs. 138.(53+ 42+ 43). Paid Rs. 34725 for reducing Rs. 138. NOBODY can be as dumb as me, shame on me. May be ICICI is smartest to keep a fool like me.
Luckily I applied for ICICI bank Credit Card and online banking, and ICICI online banking gives
facility to see all your accounts together. I saw this(Now ICICI is fool to provide this online, they could have looted me more). I saw all this; calledthem and asked to increase the EMI to Rs. 14000/- and it reduced my tenure to 158 months from 511 months. Yupp, just paying Rs. 2425 more. it reduced my tenure to 13.1 YEARS(158 Months) from 42.5 YEARS(511 Months).
The positive points are my property rates are increased. now it worth Rs. 22 lacs, which I bought for 11 lacs, 2 years back.
I took a top-up loan of 4.4 lacs from ICICI bank. hehe. Well they were happy go give me more. How could they find a fool like me anywhere else.
but, interesting, same thing happened there. I'm not going to explain see it yourself. Following are the details:
Installment Number - Due Date - Opening Principal(Rs.) - Installment Amount(Rs.) - Principal Component(Rs.) - Interest Component(Rs.) - Closing Principal(Rs.) - Rate% p.a. - Tenure(Months)
1 - 10/3/2008 - 440000 - 5392 - 350 - 5042 - 439650 - 13.75 - 240
2 - 10/4/2008 - 439650 - 5392 - 354 - 5038 - 439296 - 13.75 - 239
3 - 10/5/2008 - 439296 - 5392 - 358 - 5034 - 438938 - 13.75 - 238
4 - 10/6/2008 - 438938 - 5392 - 363 - 5029 - 438575 - 13.75 - 237
5 - 10/7/2008 - 438575 - 5392 - 284 - 5108 - 438291 - 14.5 - 339
6 - 10/8/2008 - 438291 - 5392 - 96 - 5296 - 438195 - 14.5 - 338
7 - 10/9/2008 - 438195 - 5589 - 20 - 5569 - 438175 - 15.25 - 445
8 - 10/10/2008 - 438175 - 5589 - 21 - 5568 - 438154 - 15.25 - 444
9 - 10/11/2008 - 438154 - 7100 - 1532 - 5568 - 436622 - 15.25 - 121
10 - 10/12/2008 - 436622 - 7100 - 1551 - 5549 - 435071 - 15.25 - 120
11 - 10/1/2009 - 435071 - 7100 - 1571 - 5529 - 433500 - 15.25 - 119
They sent me a letter of increasing EMI for this top-up loan, not the original home loan, and here is where I caught them. Else I could have been fooled for a longer time.
You can see there is 13.25% interest rate on home loan now and 15.75% on top-up loan. And I'm going to balance transfer both this loan to some other bank. I'm thinking of HSBC . please post your comments here. they are buying these loans at 12.5% Rate.Well still suits me.(Pls share your hsbc exp.)
Please dear ICICI Finance Manager. Go to some good finance school and learn some good practices.
I've lost around Rs. 22, 000 to you and loving to pay you more as foreclosure penalty of Rs. 30, 000 more. Buy some good gifts for your kids.
Now I feel delighted when any ICICI sales executive calls.
He/She say. Am I talking to Mr. Nitin. This is xyz from ICICI Bank.(interrupted)
I say. Kaun? ICICI Bank. not interested. rakh do phone.
