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Old 6th September 2013, 18:17   #46
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Default Re: Earn at least 6 Lakh / Year for an SBI Car Loan

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Originally Posted by MaxTorque View Post
Anyway it's SBI's choice to whom they should lend. But the problem will be, according to the bank, what are all the component of the salary will be considered as salary/income? I think many companies give benefits that are not in the form of money but as coupons/vouchers etc. We need to study the fine prints.
Based on your payslip if salaried and as per the ITR filed for previous year in case of others.

Coupons/Vouchers etc are usually not taxed AFAIK and hence cannot be counted as your income. That's one reason why some companies give a part of the salary in that format to minimize the taxable component of the salary. If it is taxed and is part of your payslip, you might be able to include it to your gross pay.
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Old 6th September 2013, 20:42   #47
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Default Re: Earn at least 6 Lakh / Year for an SBI Car Loan

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Based on your payslip if salaried and as per the ITR filed for previous year.
Yes mate, I am aware of this secret behind the coupon business. Anyway we don't have such component. Also I am not looking for a car loan at this moment.
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Old 6th September 2013, 23:22   #48
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Default Re: Earn at least 6 Lakh / Year for an SBI Car Loan

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If one has the income, it's fantastic. The bank is only asking you to furnish the proof of the same no? So, what's discriminatory in this?

Cheers,

Jay
One may earn around 3 lacs per year but may have no expenses at all, so he can use his entire income to pay EMI. It is discriminatory to such people.

Moreover the government bank should give loans at low rates of interest to stimulate auto sales instead of harming everyone.
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Old 10th September 2013, 06:09   #49
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Default Re: Earn at least 6 Lakh / Year for an SBI Car Loan

I got my car just after joining my job.Annual salary was way less than 6 lakhs then and I never had problem paying the EMI.This is because I had no other obligation. I guess there are many others like me who would like to own their 'own' car just after passing out of college, bad news indeed.

Last edited by saion666 : 10th September 2013 at 06:10.
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Old 11th September 2013, 14:40   #50
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Default Re: Earn at least 6 Lakh / Year for an SBI Car Loan

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One may earn around 3 lacs per year but may have no expenses at all, so he can use his entire income to pay EMI. It is discriminatory to such people.
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Originally Posted by saion666 View Post
I got my car just after joining my job.Annual salary was way less than 6 lakhs then and I never had problem paying the EMI.This is because I had no other obligation. I guess there are many others like me who would like to own their 'own' car just after passing out of college, bad news indeed.
What you people do not understand is the scale of lending. SBI has close to 15000 branches across the country. Even we consider one car per branch per month it means annually 1.80 lakh cars are funded by SBI. Now when the lending is at this scale do you think it is sensible to allow discretionary lending???? Imagine if each Branch manager could lend at his discretion there would be chaos on the recovery front.

Norms are fixed based on past experience and Banks may need to tweaking their product mix to remain relevant in the system. Obviously SBI has some very good reason to set up these norms and one must respect them for it.

Please note that this norm of minimum 6 lakhs is for non-SBI customer. For SBI customers it is 4.5 lakhs. Obviously with their existing customers they are able to establish a better comfort/relationship. However even if you are a SBI customer, it does mean your loan would be approved unless you have exhibited financial prudence/track record. Lastly, SBI does not bar even it own customers from taking loans from other PSU financial institutions or the private players.

Hence I do not understand why are we hammering SBI when you have the choice to negotiate with another lender, if you do not agree to SBI's terms.

Cheers

KPS

Last edited by KPS : 11th September 2013 at 14:42.
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Old 12th September 2013, 09:34   #51
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Default Re: Earn at least 6 Lakh / Year for an SBI Car Loan

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Originally Posted by mroptimist View Post
It is very clearly mentioned in SBI website http://www.sbi.co.in/user.htm.

Here is the snapshot
Can someone please clarify? Does the 4 lakh slab also includes State govt. employees?
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Old 12th September 2013, 11:44   #52
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Default Re: Earn at least 6 Lakh / Year for an SBI Car Loan

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Hence I do not understand why are we hammering SBI when you have the choice to negotiate with another lender, if you do not agree to SBI's terms.
Well said KPS. There is no point in complaining about this directive from the bank. If SBI declares that, NPA has gone up all share holders will come out against the management.
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Old 12th September 2013, 13:51   #53
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Default Re: Earn at least 6 Lakh / Year for an SBI Car Loan

i am very unhappy to hear the SBI made this decision, it's upto an individual capacity and his savings ETC to help him make a choice of buying a car. SBI can consider that he is salaried and his re payment capacity and so on and could have decided to approve the loan or not.

make head lines out of some body's pay structure is a wrong move .
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Old 12th September 2013, 18:46   #54
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Default Re: Earn at least 6 Lakh / Year for an SBI Car Loan

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Hence I do not understand why are we hammering SBI when you have the choice to negotiate with another lender, if you do not agree to SBI's terms.

We are not hammering SBI but trying to identify/justify the rationale behind this move. Ofcourse, we do have other options but then we have threads on duds like Punto/Fabia/Aria. We discuss the why/how and whens,dont we,instead of just looking at other options.

Maybe,it is the right move by SBI considering their scale of operation and maybe lack of customer orientation(doing away with the pains to look at each profile). I hope that this doesnt become the thumb rule for every car loan across all banks.
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Old 13th September 2013, 23:36   #55
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Default Re: Earn at least 6 Lakh / Year for an SBI Car Loan

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Originally Posted by KPS View Post
What you people do not understand is the scale of lending. SBI has close to 15000 branches across the country. Even we consider one car per branch per month it means annually 1.80 lakh cars are funded by SBI. Now when the lending is at this scale do you think it is sensible to allow discretionary lending???? Imagine if each Branch manager could lend at his discretion there would be chaos on the recovery front.

Norms are fixed based on past experience and Banks may need to tweaking their product mix to remain relevant in the system. Obviously SBI has some very good reason to set up these norms and one must respect them for it.

Please note that this norm of minimum 6 lakhs is for non-SBI customer. For SBI customers it is 4.5 lakhs. Obviously with their existing customers they are able to establish a better comfort/relationship. However even if you are a SBI customer, it does mean your loan would be approved unless you have exhibited financial prudence/track record. Lastly, SBI does not bar even it own customers from taking loans from other PSU financial institutions or the private players.

Hence I do not understand why are we hammering SBI when you have the choice to negotiate with another lender, if you do not agree to SBI's terms.

Cheers

KPS
SBI has probably got the worst staff, service and products compared to any private or international banks.

I would personally never go to SBI for any loan and would advice others against it.

What is shocking is the government and its machinery's attitude! Instead of offering low interest loans to attract consumers to revive the auto industry SBI is actually dealing a body blow to it.
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Old 14th September 2013, 07:16   #56
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Default Re: Earn at least 6 Lakh / Year for an SBI Car Loan

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SBI has probably got the worst staff, service and products compared to any private or international banks.

I would personally never go to SBI for any loan and would advice others against it.
You seem to have a heavily biased negative attitude towards SBI. If it is based on specific personal experiences, please mention the same so that others can understand the reason.
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Old 14th September 2013, 08:46   #57
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Originally Posted by Red Color Lover View Post

What is shocking is the government and its machinery's attitude! Instead of offering low interest loans to attract consumers to revive the auto industry SBI is actually dealing a body blow to it.
Keeping the current situation in mind I think SBI would be better off safeguarding themselves than the auto industry.
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Old 14th September 2013, 09:10   #58
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A real childish move by SBI. Didn't expect this from a bank which is there for common man's financial needs. How can SBI decide a person earning, for example, 5L per year can't afford to buy a car for his family? Their job is to evaluate each case and check if the particular applicant is able to repay in time based on her/his other liabilities. There are good options at low cost like Nano, Eon, 800, etc which one can easily afford with earnings less than 6L. This is sad because SBI has some of the best loan products in market today but this move is totally uncalled for. Grow up SBI and reverse this clause!
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Old 15th September 2013, 05:29   #59
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Default Re: Earn at least 6 Lakh / Year for an SBI Car Loan

It is important to understand that the cost of owning a vehicle is going to go up in the future. The sad part is that people can't evaluate what happens in the future. They base most of their calculation on current prices. In this case it is good to see that the bank is taking the proactive step of protecting the customer and itself. Does anyone remember the housing crises and depression of 2008? It could have been avoided if banks were more diligent. It good to see some of the lessons have been learnt.
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Old 15th September 2013, 15:13   #60
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Default Re: Earn at least 6 Lakh / Year for an SBI Car Loan

Also consider that SBI likely has enough (maybe more than its competitors) data to make such a decision. We do not have such data to make a better analysis.

Additionally, it isn't the case that SBI is the only bank in town. There're plenty of other banks out there that may not have such a sharp minimum salary requirement.
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