Failed to process home loan application, ICICI asked to pay Rs 25,000 to complainant

The bank did not resolve the home loan application for three years.

The Namakkal District Consumer Disputes Redressal Commission (NCDRC) ordered ICICI Home Finance to pay a compensation of Rs 25,000 to the applicant for not resolving the home loan application for three years.

In January 2019, R. Murugesan from Kothur, VG Patti district of Tamil Nadu, contacted the ICICI Home Finance Mysore branch for a home loan. Rs 3,540 was paid towards the processing fee, and all related documents were submitted. However, it was stated in April 2019 that his application was being rejected as per the new housing loan policy. Murugesan demanded the bank return his processing fee. In July 2022, Murugesan received a letter from the company’s head office, which mentioned the reasons for the non-return of documents and the processing fee. So he approached the NCDRC Commission, and its President V. Ramaraj and member R. Ramola pronounced the verdict after hearing the arguments. It ordered the bank to pay Rs. 25 thousand to the complainant within four weeks.