tsk sir,
There are many non-banking financial institutions (like this Maxxum). My friend has booked a Santro from Suhrit Hyundai in N-Delhi. The dealer put him in touch with one such company - 'Magnum Financial Services'.
(Magnum, Maxxum...
)
Anyway, the way they lured my friend into a deal was like this: "Sir, loan rates are going up. SBI and United Bank have already hiked rates. Take a loan from us, we'll give a pre-hike interest rate."
I had to point out to him afterward that all bank rates for car loans are floating rates, not fixed. And that if interest rates improve in the future, he stands to lose as a customer planning to take out a 5-year loan.
Totally opaque, and unethical. And the question that begs asking next - what of the reducing - is it monthly, or is yearly? Does it reduce at all?
And most importanly, why did they lie to a customer?