ARTICLE: How to get the lowest EMI & the best Finance Deal

[tsk1979]

I have HDFC car loan, though they say floating, its fixed, and interest rate does not change

[Sahil]

EMI per Lakh for BMW 520d @ Rs.3230
EMI per lakh for ANHC A/T @ Rs.3244

Both loans on a 3 year reducing balance from HDFC.

Please advice is there are any better rates around? Need to pick up both cars in the next few days.

[jimmzbond]

I have recently taken a loan from SBI. Waiting period is more than a week with loads of documentation required.
Though i had pre-approved offers from HDFC and ICICI, but still was advised by friend who work for Tata capital to go for SBI.
All process was smooth, but it had to wait for 3 hours for re-imbursement at the bank. Again, i got to know that they had approved my request for 5 years instead of 3 years (which i discussed with their rep, when filling the form). When i met SBI's credit analyst, i realised they will take another 1 week to process my loan if loan duration is changed. For no fault of mine, i am struck with 5 year loan.

The contract says 11.75%(variable) instead of 10% as advertised and the bank manager says, dont worry because the contract is old. I still went ahead and signed the contracts. Any further delay would have made me pay extra 30,000 due to price hikes in honda. Also they are not charging any processing fees and no advance EMIs.
But, verbally, I have been told I can pre-pay without any penalty charges.
So, I am going ahead. The fault was mine, because i only signed the loan form and not filled it. The sales representative filled it for me.
So, always fill you complete form.
And they take PDCs for full duration. No ECS for them if bank account is not with SBI.

[anandtheleo]

Originally Posted by jimmzbond

No ECS for them if bank account is not with SBI.

I have my car loan with SBI too and I have a ECS mandate for it with my savings account in HDFC.

[MitzYeah]

I am buying my first car, booked the GP MJD. Need to know which is the best loan deal available - have a pre-approved loan quote from HDFC, but the rate is around 11.5%. Have been told that Reliance offers 11%.

Any ideas/information anyone? Also, which insurance vendor would you recommend?

[GTO]

Search the forum, Mitz. Lots of posts on the latest finance deals.

[aZa]

HDFC is giving 11.25% without negotiating! While ICICI quoted me 14/14.5%, and it had only one guy sitting for loans (lol!) today compared to a room full of agents an year or two back. SBI is quotes 8% for first year, 10% for next 2 years (3yr period) and near about 11% for 5years.

I had a weird complication today, HDFC said they wont give me a draft for the loan amount, it will be transfered online. Hence the dealer should have a HDFC account. And ICICI says it will only finance a vehicle if the dealer is from NCR.

aarghh!!

Will be visiting a few more banks tom!

[dash]

Originally Posted by aZa

HDFC is giving 11.25% without negotiating! While ICICI quoted me 14/14.5%, and it had only one guy sitting for loans (lol!) today compared to a room full of agents an year or two back. SBI is quotes 8% for first year, 10% for next 2 years (3yr period) and near about 11% for 5years.

I had a weird complication today, HDFC said they wont give me a draft for the loan amount, it will be transfered online. Hence the dealer should have a HDFC account. And ICICI says it will only finance a vehicle if the dealer is from NCR.

aarghh!!

Will be visiting a few more banks tom!

HDFC offered me 10.5% if I buy insurance also thro' them. But nothing can beat SBI rates and 0 processing fee..

[kkr2k2]

Originally Posted by aZa

..... SBI is quotes 8% for first year, 10% for next 2 years (3yr period) and near about 11% for 5years.
......

I am heading to SBI now.

Originally Posted by dash

HDFC offered me 10.5% if I buy insurance also thro' them. But nothing can beat SBI rates and 0 processing fee..

next to HDFC!!!!

[somebodystopme]

Hi friends as the topic states I dont deserve to be 24 years old, Being a designer I am a shame on the word maths. But still Have tried my level best to calculate emi's and loan. Which has further confused me. Please go through my post.
I enquired about car loan from hyundai and following is what they are offering

For a loan amounting to RS 300000. Hyundai through HDFC is asking for 9636X35 emi's @ 10.25%. They added the processing fee of 2910 as well now i dont know if its added on EMI or will they take it seperately. So this against SBI's 8% for the first year and 10% for two years, which is better.

I have also approached HDFC as we already have an auto loan there which has never defaulted they will get back to me. Will try and bargain for the % and processing fee.

Also one of my relatives knows someone from HDFC, he is saying he can get me 9.25% which was offered to him three months back though he is not sure if its the same still and neither am I. Please guide thanks.

[DCEite]

Do you have a savings account with some public sector bank? If yes, try the car loan with them. In all probability it will be cheaper and have lesser processing fees. IIRC Bank of India offers the cheapest car loan.

[aarenes]

Hi

Try using my total cost of ownership calculator to see which one works the best for you.
- Get the EMI per lac from your loan agent. That way, you can seperately spike out every single cost element. Different banks have different processing fee + stamp duty + administrative charges and the fees could be all inclusive or some fees hit you as a hidden charge.
- For SBI, ask them explicitly how much you will be paying for year 1,2 and 3 for the same loan amount and then add that amount to the total EMI section. I did that and kotak turned out to be more competitive for me. Not to mention speedier than SBI !!!

BTW - I got a loan at 9% from Kotak Mahindra bank. So loans that low are definitely a reality. Try pitting one agent against the other. Get a written quotation or an emailed quotation. It also helps the agent make a case to their "seniors" :-)

[Bapu]

Originally Posted by somebodystopme

For a loan amounting to RS 300000. Hyundai through HDFC is asking for 9636X35 emi's @ 10.25%.
They added the processing fee of 2910 as well now i dont know if its added on EMI or will they take it seperately.

This is the typical scheme offered. Basically, what the hype given to you is that 1 EMI advance to be given with the down payment. That EFFECTIVELY brings down the Loan resulting in a higher rate of interest that you are payiing. Your rate of interest is coming to 10.27% with 1 EMI. If you are able to negotiate for a Zero EMI advance scheme the rate of interest is 9.69%.

On rate of interest comparision, i believe, the SBI loan is coming across as costlier. However, they dont have any prepayment charges or processing fees.

I got my car loan from HDFC (getting disbursed today) at 9% with zero advance EMI + NIL Processing fees . This was after a tough fight with them. The EMI is Rs.3190 per lac.

I believe Bank of India is also offering the same rate. Also, negotiate with all banks and you'll be able to manage a full or partial waiver of the processing fees.

Pls note that AFAIK, all the Pvt sector banks shall be having PREPAYMENT charges. Which the nationalised banks / cooperative banks would not be charging. So if you are planning to repay before time, the other banks would work out cheaper.

Let me know if you want any other details.

[rr_zen]

Try your luck with Axis Bank. They have lowered their interest rates to as low as 7.75% (this is what was quoted to me for a loan for buying the Innova).

[mithun]

Originally Posted by rr_zen

Try your luck with Axis Bank. They have lowered their interest rates to as low as 7.75% (this is what was quoted to me for a loan for buying the Innova).

I've also heard the same. The car loans from Axis bank is a lot cheaper than SBI in the longer run.