Funny Rates and EMI's for indica financing

[greenhorn]

This is a continuation from my sage of buying an indica continued from over here .
http://www.team-bhp.com/forum/what-c...esel-2l-3.html (second hand Diesel <=2l)
Felt that this was the more appropriate place to post

yesterday, at the tata dealership, a salesman had flatly denied the existense of financing for indica diesels at all.
we came across a TATA loan mela today.
now THEY cant say that they're not offering loans

they said they did offer 7.99% finance.
we asked for how much it would be for a loan of 1.5 L over 3 years
they calculated and gave me an EMI of 5025.
Given that it was ICICI doing the finance , i smelt a rat . In addition, I'll have to forgo the 10k cash/14k accessories discount to avail finance.
Asked dad and met his banker at South Indian bank. Asked for a loan. they said 13.5% , and the emi for a loan of 1.5L over 3 years.
SURPRISE !
EMI = 5090.
over the 36 months , the 65 buck difference works out to only 2340. Net saving = 10k -2340 = 7660.
How come such a small difference in EMI's with such a large difference in the offered interest rates?What gives ?
Dad was thinking about going for ICICI since he'd already done the paperwork, but after reading about the horror stories here , I'm having second thoughts ...

[tsk1979]

Go for the other bank loan, and get your cash discount from dealer. More savings this way.

[theMAG]

Private banks always have more invisible fine print than otherwise. And ICICI is one bank particularly that you need to steer clear of. Best option is to go with nationalized banks or HDFC.