Go Back   Team-BHP > BHP India > Team-BHP Reviews > Indian Car Loans & Insurance


Reply
 
Thread Tools Search this Thread
Old 4th June 2013, 14:40   #151
BHPian
 
sumeshmani's Avatar
 
Join Date: Oct 2011
Location: bangalore
Posts: 477
Thanked: 104 Times
Default Re: The Cheap Loan or the Smart Loan - SBI Advantage Car Loan

Quote:
Originally Posted by keyur View Post
The Renault (or any car sales) agent will not be aware of this. You need to ask him to provide the details of the branch that he is affiliated with. Then you need to take the necessary papers and go to the branch, meet the officer there and ensure that he ticks on the OD option on your application form.

While opening your account, you should tell them that you already have an SBI Account and provide your customer id to them, and ensure that it is entered on the form (in the relevant section).

You should also submit the request forms for linking all these accounts and enabling internet banking over them.

You will need to do some work to get the goods man!
SBI will call me to their branch this week, to sign the loan contract.
I'll take my SB account details, get the loan account linked to my savings account internet banking.
I hope to get the OD account also attached. Lets hope the branch manager is aware of such features and will help me.
sumeshmani is offline   Reply With Quote
Old 4th June 2013, 14:48   #152
BHPian
 
Join Date: Jul 2011
Location: Pune
Posts: 472
Thanked: 381 Times
Default Re: The Cheap Loan or the Smart Loan - SBI Advantage Car Loan

Quote:
Originally Posted by sumeshmani View Post
SBI will call me to their branch this week, to sign the loan contract.
I'll take my SB account details, get the loan account linked to my savings account internet banking.
I hope to get the OD account also attached. Lets hope the branch manager is aware of such features and will help me.
The OD option is on the 3rd page of the form (atleast it was). Linking option is on the 2nd or 3rd page.
keyur is offline   (1) Thanks Reply With Quote
Old 28th June 2014, 13:23   #153
BHPian
 
pgupta's Avatar
 
Join Date: Dec 2009
Location: Bangalore
Posts: 165
Thanked: 98 Times
Default Re: The Cheap Loan or the Smart Loan - SBI Advantage Car Loan

First of all many thanks to Keyur for such an informative post and then posting clarifications to all questions.

The concept is pretty simple if we can park the total amount outstanding in the OD account and hence no interest and since the principal outstanding reduces every month, the whole EMI can be transferred back.

However how to know how much can I withdraw if I have only partially toped it up ? How to see the principal outstanding every month and the interest saved as a result of the the partial top up ? So that I can calculate how much can be withdrawn without increasing the liability.
pgupta is offline   Reply With Quote
Old 28th June 2014, 21:47   #154
BHPian
 
Gentle Giant's Avatar
 
Join Date: Aug 2010
Location: Mumbai
Posts: 76
Thanked: 28 Times
Default

Hi Guys, I'm panning on buying a new car and came across this thread. Found it pretty interesting and wanted to know if this product is still on offer by SBI? Thank you in advance for your inputs, Regards.
Gentle Giant is offline   Reply With Quote
Old 2nd July 2014, 23:00   #155
BHPian
 
pgupta's Avatar
 
Join Date: Dec 2009
Location: Bangalore
Posts: 165
Thanked: 98 Times
Default

Quote:
Originally Posted by Gentle Giant View Post
Hi Guys, I'm panning on buying a new car and came across this thread. Found it pretty interesting and wanted to know if this product is still on offer by SBI? Thank you in advance for your inputs, Regards.

Yes, it is available. However you might need to pursue it a bit as the OD option is not commonly offered for car loans.
pgupta is offline   Reply With Quote
Old 29th July 2014, 03:02   #156
BHPian
 
Join Date: Jul 2011
Location: Pune
Posts: 472
Thanked: 381 Times
Default Re: The Cheap Loan or the Smart Loan - SBI Advantage Car Loan

Quote:
Originally Posted by pgupta View Post
First of all many thanks to Keyur for such an informative post and then posting clarifications to all questions.

The concept is pretty simple if we can park the total amount outstanding in the OD account and hence no interest and since the principal outstanding reduces every month, the whole EMI can be transferred back.

However how to know how much can I withdraw if I have only partially toped it up ? How to see the principal outstanding every month and the interest saved as a result of the the partial top up ? So that I can calculate how much can be withdrawn without increasing the liability.
Once you get the account opened and get transaction rights + internet banking enabled, you can see the whole summary there.

If you have taken a loan of 5L, the overdraft account will start with -5L, i.e. overdraft of 5L.
If you add 1L to it, your current overdraft would show -4L, but your overdraft limit would be still 5L, so you can withdraw 1L.

Now, this amount will change as per your amortization schedule. You will understand better when you take a look at the summary.

Quote:
Originally Posted by Gentle Giant View Post
Hi Guys, I'm panning on buying a new car and came across this thread. Found it pretty interesting and wanted to know if this product is still on offer by SBI? Thank you in advance for your inputs, Regards.
It is available. Tell them firmly to link this to an Over Draft (OD) account. Also, when you fill in the form, there will be an option that asks for type of account. Do not sign unless OD is selected.
keyur is offline   Reply With Quote
Old 25th September 2014, 05:37   #157
BHPian
 
pdma's Avatar
 
Join Date: Oct 2013
Location: Hyderabad
Posts: 602
Thanked: 818 Times
Default Re: The Cheap Loan or the Smart Loan - SBI Advantage Car Loan

Quote:
Originally Posted by keyur View Post
And the question changes from WHICH CAR to WHICH LOAN?
Dear Keyur,

First of all a million thanks for starting this excellent thread.

Iam planning to buy a car early next year and thankfully I have the required cash and hence I see that I can use the OD facility to have the luxury of liquidity & also since I plan to deposit the entire amount from day 1 the interest is expected to be 0%.

Now my concern is say I buy a 10 L rupee car and since I can avail the loan upto 80% , say I take a loan for 8L for 5 years.

Since I would be depositing 8L on day 1 into OD account which will not fetch me any additional interest like the usual 9% on savings account , hence my calculation below

9% PA Interest if I deposit 8L in a savings account = Rs 72000 PA.

Rs 72000 X 5 Years ( My loan term ) = Rs 3,60,000.

So does this not mean Iam anyways paying 3.6L in years to the bank to enjoy the option of liquidity (which I may or may not require) which translates to 9% ROI.

I agree that this is far less than availing a car loan however in my opinion the interest is never 0% even If I top up the OD account from day 1 as Iam still loosing 9%.

Kindly let me know if my understanding is correct. I will be the happiest to be proven wrong in this case as I can save more .

Is there anyway we can save this 9% or 3.6L.

Looking forward for your inputs.

Cheers,
pdma.
pdma is offline   Reply With Quote
Old 25th September 2014, 08:48   #158
BHPian
 
pdma's Avatar
 
Join Date: Oct 2013
Location: Hyderabad
Posts: 602
Thanked: 818 Times
Default

Quote:
Originally Posted by pdma View Post
my calculation below

9% PA Interest if I deposit 8L in a savings account = Rs 72000 PA.

Rs 72000 X 5 Years ( My loan term ) = Rs 3,60,000.

So does this not mean Iam anyways paying 3.6L in years to the bank to enjoy the option of liquidity (which I may or may not require) which translates to 9% ROI.

I agree that this is far less than availing a car loan however in my opinion the interest is never 0% even If I top up the OD account from day 1 as Iam still loosing 9%.


Cheers,
pdma.
Quoting my own post as I just realized something quite simple.

If I pay 8 L upfront to the dealer then there is no 9% interest anyways as I have nothing in my hand to deposit in any bank ,so why in this world was I under the impression that Iam loosing 9%.No guys iam not smoking weed .

Another correction from my earlier post the 9% is on FD and not from savings account.

Cheers ,
pdma.
pdma is offline   (1) Thanks Reply With Quote
Old 1st October 2014, 21:40   #159
BHPian
 
Join Date: Jul 2011
Location: Pune
Posts: 472
Thanked: 381 Times
Default Re: The Cheap Loan or the Smart Loan - SBI Advantage Car Loan

Quote:
Originally Posted by pdma View Post

First of all a million thanks for starting this excellent thread.
You are welcome!
Quote:
Originally Posted by pdma View Post
Since I would be depositing 8L on day 1 into OD account which will not fetch me any additional interest like the usual 9% on savings account , hence my calculation below

9% PA Interest if I deposit 8L in a savings account = Rs 72000 PA.

Rs 72000 X 5 Years ( My loan term ) = Rs 3,60,000.
For 9%, it needs to be a FD, not a simple savings account

Also, you are calculating simple interest, whereas you should calculate compound interest - which means that you will earn more than 3.6L in 5 years!

BUT - you are forgetting that all that income from interest is taxed, and will probably hit the 30% bracket. So, to put it simply, you are getting 6.3% and not 9%.

As against that, you are saving the 10-12% that you would pay as interest.
The way to save that extra money is by simply paying of the entire amount from your pocket. But, then you don't have any liquidity.

This is just a matter of getting a loan at 0 interest, with liquidity, at the cost of loss of interest earnings on the said amount.
keyur is offline   (1) Thanks Reply With Quote
Old 24th October 2014, 14:40   #160
Newbie
 
VolBrat's Avatar
 
Join Date: Oct 2014
Location: Chennai
Posts: 23
Thanked: 13 Times
Default Re: The Cheap Loan or the Smart Loan - SBI Advantage Car Loan

SBI is currently offering loans @ 10.4% with no processing fee, no part payment charges / foreclosure charges and upto 7 years with 90% On road for existing customers.
VolBrat is offline   Reply With Quote
Old 30th October 2014, 19:17   #161
BHPian
 
Join Date: Oct 2006
Location: Bengal...ooroo
Posts: 589
Thanked: 140 Times
Default Re: The Cheap Loan or the Smart Loan - SBI Advantage Car Loan

Quote:
Originally Posted by keyur View Post
This is just a matter of getting a loan at 0 interest, with liquidity, at the cost of loss of interest earnings on the said amount.
Hi Keyur. First of all a hearty thanks for this thread and helping so many BHP'ians get their dream wheels. I will be approaching SBI tomorrow/Monday.

I would go ahead and get an approval on loan first and then book the car. I had some issues with a CC earlier, which is now sorted, but want to be doubly sure that the loan will be processed before i pay the booking amount. My current CIBIL score is just a shy below 800.

My salary account for last 5 years is with SBI bangalore branch, but currently i work for the same company in Chennai for last 2+ years. Will that be an issue?

Also in the attached screen shot (excuse the poor quality), which of the option should i tick while submitting the application? SBI Advantage Car Loan OR Car Loan - Overdraft? I have circled these options in red.
Attached Thumbnails
The Cheap Loan or the Smart Loan - SBI Advantage Car Loan-img_20141030_170213758_hdr.jpg  

hyper-VTEC is online now   Reply With Quote
Old 13th November 2014, 13:36   #162
BHPian
 
Join Date: Oct 2006
Location: Bengal...ooroo
Posts: 589
Thanked: 140 Times
Default Re: The Cheap Loan or the Smart Loan - SBI Advantage Car Loan

i booked my car, but now no SBI branch is accepting that there is a Car Loan with Overdraft facility. I visited 3 branches and spoke to Branch Manager and all of them had the same answer.

I am from Chennai and plan to visit the HO at Greams Road tomorrow.
hyper-VTEC is online now   Reply With Quote
Old 20th November 2014, 08:09   #163
BHPian
 
Join Date: Oct 2006
Location: Bengal...ooroo
Posts: 589
Thanked: 140 Times
Default Re: The Cheap Loan or the Smart Loan - SBI Advantage Car Loan

After lot of calls here and there i was able to get a SBI Loan with OD. Thanks keyur and others. I applied in Shollinganalur Branch in Chennai.

Amount: 6L
ROI: 10.45%
Duration: 60 months
No Processing fees
Stamp Fees of INR 520.

Last edited by hyper-VTEC : 20th November 2014 at 08:11.
hyper-VTEC is online now   Reply With Quote
Old 27th November 2014, 21:22   #164
BHPian
 
Join Date: Nov 2014
Location: KA53/UP80/DL7S
Posts: 110
Thanked: 55 Times
Default

This is my first ever post on T-BHP. I just wanted to know that which SBI branch in Bangalore is offering the SBI Advantage car loan ? I am looking to buy GT TSI soon.
adi_gt is offline   Reply With Quote
Old 18th December 2014, 23:03   #165
BHPian
 
pdma's Avatar
 
Join Date: Oct 2013
Location: Hyderabad
Posts: 602
Thanked: 818 Times
Default Re: The Cheap Loan or the Smart Loan - SBI Advantage Car Loan

Hello All ,

Kindly let me know if anybody from Hyderabad has availed this facility, if yes please let me know the branch details.

I would be applying for a loan end of Jan or early Feb next year and to be on the safe end have started doing my homework from now on.

The SBI website definitely mentions about this facility , however as quoted by many members here the staff seems to be ignorant on the same.

Also I see a mention of overdraft car loan option on the website of Axis Bank as well , please let me know if anyone checked other options apart from SBI.

Kindly help.

Cheers,
pdma.

Last edited by pdma : 18th December 2014 at 23:07.
pdma is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
SBI Car Loan - My Experience classicselva Indian Car Loans & Insurance 143 21st November 2017 14:54
My superb car loan experience : SBI, Margao ADB Branch akshay380 Indian Car Loans & Insurance 1 21st November 2011 14:17
Car loan SBI or Kotak ? SX4_2007 Indian Car Loans & Insurance 29 28th December 2009 14:26
SBI cuts home, car and retail loan rates dadu Indian Car Loans & Insurance 18 29th October 2007 18:02


All times are GMT +5.5. The time now is 12:08.

Copyright ©2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks