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Old 27th November 2015, 11:47   #181
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Default Re: ARTICLE: How to get the lowest EMI & the best Finance Deal

HDFC Offer

1. ROI 9.55 %

2. Processing Fee 999

3. Prepayment allowed only twice during the loan duration and up to 25% of the total principal amount and a penalty of 5%

4. Foreclosure after 12 months attracts nothing

Apart from the rate of interest, rest everything is negative about this offer

It seems SBI is the way to go what say Gentlemen ?
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Old 27th November 2015, 13:21   #182
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Originally Posted by Ramit View Post
It seems SBI is the way to go what say Gentlemen ?
Was in the same predicament a few weeks ago. Fixed ROI from HDFC or Floating from SBI. Then read the smart emi thread by keyur and opted for SBI with OD facility. Do search for that thread and read. Also use the amortization schedule in the first post of this thread to calculate interest payout.

Last edited by procrj : 27th November 2015 at 13:22.
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Old 27th November 2015, 14:06   #183
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Default Re: ARTICLE: How to get the lowest EMI & the best Finance Deal

Quote:
Originally Posted by Ramit View Post
HDFC Offer
...
Apart from the rate of interest, rest everything is negative about this offer
It seems SBI is the way to go what say Gentlemen ?
Ramit,
You can go with either of this. Both offers are almost same, not much difference.
Don't think too much.

Let us compare the parameters.

1a) Interest rate - No difference at all. For a loan of 5 Lacs for 3 years, EMI @ 9.85% (SBI) is Rs 16,098. For HDFC (9.55%) it will be 16,028. Difference of 70 rupees a month. If the loan is for 5 years, the difference will be about 65 rupees. So really not much. If you want give HDFC a slight advantage. 0.5 points for HDFC

1b) Fixed and floating rate - in case of HDFC you know what you will be paying. In SBI as it is floating rate, it can go up or down. For the certainty, you can give slight advantage to HDFC - 0.5 points.


2) Processing fee - 999 for HDFC and 0 for SBI. Advantage SBI. But it is only 100. So 0.5 points to SBI.

3) Prepayment and foreclosure - SBI advantage. After 12 months, you can close the loan with HDFC also without any penalty. Prepayment with out penalty etc may look like a big advantage now, but in reality, you may not exercise this option, but anyway 1 point for SBI.

4) Documentation and processing - it is great that your company has tie up with SBI and they are ready to come to your office for documentation. HDFC would also do the same. So it is again a tie. 0-0

So overall points - HDFC 1 - SBI 1.5
SBI wins narrowly.

Couple more points. Slightly off topic, but I think relevant.

a) If going with SBI, they may ask you to open an account with them. I think you should. You can transfer money for EMI from your HDFC salary account to SBI account and enable automatic deduction of EMI. You can transfer little extra money every month, for example if your EMI is 13,000, transfer 15,000 to SBI every month (if possible). This will be an automatic saving and at the end of 6th month, you cna use that to do an additional payment for the loan.

b)Even though it looks like SBI is better, there is another thing you may consider. With your salary account with HDFC, getting the loan also from them will improve your relation with the bank. You will be moving up in the customer classification (classic to gold to premium to imperia) and with each level of progression, the facilities and advantage increases. It is good to have a strong relation with a bank. When you are going for a bigger loan (home loan etc), existing relation makes it easier.

Anyway, as I mentioned earlier, there is not much difference between the two offers. Don't spend too much time to decide. Finalise one and go ahead.

And all the best. Have many happy miles in your new car.
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Old 27th November 2015, 14:33   #184
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Default Re: ARTICLE: How to get the lowest EMI & the best Finance Deal

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Originally Posted by JohnyBoy View Post
Ramit,
You can go with either of this. Both offers are almost same, not much difference.
Don't think too much.

So overall points - HDFC 1 - SBI 1.5
SBI wins narrowly.

Couple more points. Slightly off topic, but I think relevant.

a) If going with SBI, they may ask you to open an account with them. I think you should. You can transfer money for EMI from your HDFC salary account to SBI account and enable automatic deduction of EMI. You can transfer little extra money every month, for example if your EMI is 13,000, transfer 15,000 to SBI every month (if possible). This will be an automatic saving and at the end of 6th month, you cna use that to do an additional payment for the loan.

b)Even though it looks like SBI is better, there is another thing you may consider. With your salary account with HDFC, getting the loan also from them will improve your relation with the bank. You will be moving up in the customer classification (classic to gold to premium to imperia) and with each level of progression, the facilities and advantage increases. It is good to have a strong relation with a bank. When you are going for a bigger loan (home loan etc), existing relation makes it easier.

Anyway, as I mentioned earlier, there is not much difference between the two offers. Don't spend too much time to decide. Finalise one and go ahead.

And all the best. Have many happy miles in your new car.
Hi @JohnyBoy, Thanks a ton...I think it makes things lot more simpler....I think I will go with SBI as right now, Prepayment is an important parameter I am considering..Thanks once again !
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Old 7th December 2015, 19:02   #185
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Default Re: ARTICLE: How to get the lowest EMI & the best Finance Deal

Guys,

Has anyone availed loan from Ford finance for their Ford purchases? Wanted to know specifically if:
1. This is a floating or fixed rate
2. It has a pre-payment penalty / pre-closure penalty
3. % of loan amount
4. Tenure is for 5 years or 3 years
5. How much is the processing charge

Thanks in advance

Last edited by turboturtle : 7th December 2015 at 19:04. Reason: added an additional point
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Old 9th February 2016, 21:40   #186
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Default Re: ARTICLE: How to get the lowest EMI & the best Finance Deal

Is there anything called Stamp duty (@ 0.5% of loan amount) to be paid in case of car loan? I am finalizing a loan from HDFC, ROI is 9.65%, no processing fee, but the showroom guy tells that I need to pay an extra 0.5% of the loan amount in the beginning, which he is calling as stamp duty and claims that it will go to the govt.
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Old 10th February 2016, 10:55   #187
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Default Re: ARTICLE: How to get the lowest EMI & the best Finance Deal

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Originally Posted by 9tMax View Post
Is there anything called Stamp duty (@ 0.5% of loan amount) to be paid in case of car loan? I am finalizing a loan from HDFC, ROI is 9.65%, no processing fee, but the showroom guy tells that I need to pay an extra 0.5% of the loan amount in the beginning, which he is calling as stamp duty and claims that it will go to the govt.
There is stamp duty. You will get a receipt also.
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Old 14th March 2016, 23:31   #188
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Default Re: ARTICLE: How to get the lowest EMI & the best Finance Deal

Guys,
Need urgent advice. Booked a BMW 320d LCi Prestige. Planning a loan from BMW finance.
Has anyone availed loan from BMW finance for their BMW purchases? Wanted to know specifically if:
1. This is a floating or fixed rate. i am told it will be 9.35% or 9.65%
2. It has a pre-payment penalty / pre-closure penalty (it 2% if done less than 50% emi duration. means if i take loan for 84 months, then pre-payment penalty is applied before 42 months0
3. % of loan amount
4. Tenure is for 7 years or 5 years
5. How much is the processing charge (i am told it is rs 6500/- approx)
while SBI has a offer of 9.85%, No processing charge and No pre-penalty charge.
SBI seems to have more peace of mind.
But the Bird BMW fellow is not giving a Invoice Performa for submission.

Please advice quickly. Thanks in advance
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Old 13th May 2016, 18:21   #189
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Smile Re: ARTICLE: How to get the lowest EMI & the best Finance Deal

Quote:
Originally Posted by Ramit View Post
Hi @JohnyBoy, Thanks a ton...I think it makes things lot more simpler....I think I will go with SBI as right now, Prepayment is an important parameter I am considering..Thanks once again !
Good Decision

I got loan approved from SBH - State bank of Hyderabad, with same terms and conditions of SBI but the ROI was .10 percent higher(negligible).

Normally people think, oh sarkari banks they are not good, but SBH service was WAY WAY better than any private bank, they approved loan super fast, sent all documents for verification over email, they completed formalities (collect signature etc) in my office.

Also, State bank/Govt. Banks don't charge any prepayment penalty, you can pay any number of times!
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Old 17th June 2016, 23:37   #190
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Default Re: ARTICLE: How to get the lowest EMI & the best Finance Deal

Quote:
Originally Posted by drkunaldas View Post
Guys,
Need urgent advice. Booked a BMW 320d LCi Prestige. Planning a loan from BMW finance.
Has anyone availed loan from BMW finance for their BMW purchases? Wanted to know specifically if:
1. This is a floating or fixed rate. i am told it will be 9.35% or 9.65%
2. It has a pre-payment penalty / pre-closure penalty (it 2% if done less than 50% emi duration. means if i take loan for 84 months, then pre-payment penalty is applied before 42 months0
3. % of loan amount
4. Tenure is for 7 years or 5 years
5. How much is the processing charge (i am told it is rs 6500/- approx)
while SBI has a offer of 9.85%, No processing charge and No pre-penalty charge.
SBI seems to have more peace of mind.
But the Bird BMW fellow is not giving a Invoice Performa for submission.

Please advice quickly. Thanks in advance
Hi Dr. Kunal Das , I hope you have purchased the car . I am too looking for the same car from the same showroom and the ROI offered to me is @ 8.75% reducing . They say this is a special scheme from BMW only for this month(i don't know how far that is true)

Kindly share your experience with Bird Automotive . Were they nice and transparent or do they like to play around and hide the facts . Any thing in particular one needs to look out for while dealing with these guys .

Many thanks .
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Old 7th September 2016, 23:22   #191
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Default Re: ARTICLE: How to get the lowest EMI & the best Finance Deal

I have a long standing salary account with HDFC with a personal loan in the past. I know that getting an automobile loan from the HDFC would not be difficult at all.

But hearing people say that its always best to get a loan from the SBI for its lower rate of interests and nil pre-closure charges etc, I am now wondering what is the best way to go forward. I do have an active account with the SBI and I had inquired if there are any benefits for being an account holder. I was simply told NO; something very strange

The question therefore goes to all learned fellows out here who has a fair understanding on the basic working on the loan mechanism along with the underpinning and fine prints, Which one is better to go for:- SBI / HDFC and why?

I have PPF account with SBI and salary account with HDFC.
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Old 9th September 2016, 09:48   #192
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Default Re: ARTICLE: How to get the lowest EMI & the best Finance Deal

SBI loans typically are of a floating rate type as opposed to HDFC's fixed rate. When the rate cuts happened in the recent years, I benefited due a bit because I was SBI loan holder.

Secondly, SBI loans tend not to have any foreclosure penalties or prepayment penalties. I'm sure you can find finer details on the respective websites.

EDIT: Just noticed that @JohnyBoy has more specific details a few posts above yours. Should've gone through the thread myself. :facepalm:

Last edited by nareshov : 9th September 2016 at 09:50.
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Old 9th September 2016, 10:02   #193
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Default Re: ARTICLE: How to get the lowest EMI & the best Finance Deal

Quote:
Originally Posted by Majumdarda View Post
I have a long standing salary account with HDFC with a personal loan in the past. I know that getting an automobile loan from the HDFC would not be difficult at all.

But hearing people say that its always best to get a loan from the SBI for its lower rate of interests and nil pre-closure charges etc, I am now wondering what is the best way to go forward. I do have an active account with the SBI and I had inquired if there are any benefits for being an account holder. I was simply told NO; something very strange

The question therefore goes to all learned fellows out here who has a fair understanding on the basic working on the loan mechanism along with the underpinning and fine prints, Which one is better to go for:- SBI / HDFC and why?

I have PPF account with SBI and salary account with HDFC.
Same; PPF with SBI and a salary account with HDFC as Preferred customer.

While considering a loan in June, I had a quote of 9.6 from SBI and 9.65 from HDFC. Given that I am a Preferred customer, HDFC waived off the processing fee and early foreclosure fee after 6 months and were flexible with my term (I only wanted a two-year term). The company I work for, made things easier since it is in their Tier-1 list.

Since you have an association with HDFC, that too as a salary account holder, I'd suggest going with them. They are willing to work out benefits.

Also, everything happens over the phone and their agent comes over to collect documents at your residence. All in all, very easy and convenient.

Last edited by libranof1987 : 9th September 2016 at 10:05.
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