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Old 3rd June 2007, 04:57   #1
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Default Maruti - Citicorp Finance

I bought an alto last week in Calcutta...got the vehicle financed from Maruti - Citicorp Finance @ 14.5% reducing balance for 4 years - 3.5% take off on the loan amount from the Dealer which has been deducted from the downpayment.Is this a good deal?
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Old 3rd June 2007, 21:09   #2
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Unless you give the details such as amount of loan, EMI, tenure etc, it is difficult to tell.From the above details, you can find out the real rate of interest, and you can also find out if the loan is on reducing balance or on flat rate.

Considering that it is citifinance ( with reputation similar to ICICI), I will be wary of taking a loan from them, or believing them at their face value.
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Old 4th June 2007, 02:26   #3
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amount of loan - Rs.2,50,000
EMI - Rs.6810 p/m
tenure - 4years
Rate - 14.5% reducing bal.
Take off - 3.5% of loan amount
now tell me wat do u think?
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Old 4th June 2007, 13:06   #4
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From the details provided by you, for an EMI of Rs 6810 for a loan of Rs 2,50,000/-, the interest works out to be 13.82 %. So prima facie, it appears to be a good deal.

Of course, I am not aware what is the prevailing interest rate on car loans at present.I know that it was 10 % two years ago.
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Old 4th June 2007, 13:21   #5
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guys, I guess I have landed a good deal with Citibank.

Pricipal: 4,00,000
Tenure: 5 Yrs.
ROI : 11.5%

It took me numerous rounds of negotiation with the dealer( Apra Auto ) and Citibank. Approaching Citibank directly helped and they offered me this rate 11.5% + Processing fee of Rs. 1200.
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Old 4th June 2007, 23:26   #6
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What is your EMI ? From the EMI you can find out whether your interest is actually 11.5 %.
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Old 4th June 2007, 23:50   #7
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Arrow Emi

Folks,

ROI varies from bank to bank and vehicle to vehicle.... Marketing stunt is that what you call

14.5 % is bit on higher side. If negotiated well then you can get around 12% to 12.5 with private players and 11.25 to 12.5 with public sector banks.

Still it depends on your negotiation.

I got 12% from HDFC bank for 5 lac tenure 5 years.

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Old 4th June 2007, 23:55   #8
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EMI's have increased a lot omg i have to rethink about buying car from my own money now...

How much will it cost if i take 8 lac loan @5years with interest rate being 12% or so
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Old 5th June 2007, 10:33   #9
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Quote:
Originally Posted by squarecut View Post
What is your EMI ? From the EMI you can find out whether your interest is actually 11.5 %.
I will be paying an EMI of Rs. 8712 for the loan of 4,00,000 for 5 yrs. Please calculate the actual Rate of Interest and please explain the steps?
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Old 5th June 2007, 10:52   #10
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The interest is coming out to 11.075 %.
There are many programs to make the calculations.

One of the best tools to calculate them is the "Loan Amortisation schedule" which is an excel sheet and its download link is provided in this forum as well.
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Old 5th June 2007, 10:57   #11
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Quote:
Originally Posted by horsepower View Post
I will be paying an EMI of Rs. 8712 for the loan of 4,00,000 for 5 yrs. Please calculate the actual Rate of Interest and please explain the steps?
go to: EMI Calculator - Calculate Your Car Loan EMI - CarWale.com India

and enter the appropriate values. Your EMI indicates that your ROI is approximately equal to 11.5%
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Old 5th June 2007, 20:07   #12
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hey guys thnx for so many replies and even I've calculated that after deducting the take off amount which comes to around Rs.8750 the rate of interest is about 13.5% or so which is about the best deal that I could get in Calcutta.HDFC is charging way more even though I have a salary account with them.ICICI comes close to about 13.8% after taking into account all hidden costs(they claim they are charging 12.5%).Anyways I might be foreclosing the loan and hence might end up saving a few more bucks for that matter....
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Old 5th June 2007, 20:58   #13
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What's the difference between "EMI in advance" and "EMI in arrears"? (On the carwale site)
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Old 5th June 2007, 21:00   #14
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Right now I am in Moradabad (UP), its small town.......I took a test drive of SX4 ZXI here ;-)) and inquired about ROI. I was told that Maruti finance is offering 11.75 Flat and nationalized bank like SBI or PNB are offering some where around 13% reducing. Is this something like ROI differs from city to city
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Old 6th June 2007, 02:01   #15
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Quote:
Originally Posted by rlather View Post
I was told that Maruti finance is offering 11.75 Flat and nationalized bank like SBI or PNB are offering some where around 13% reducing. Is this something like ROI differs from city to city
11.75% flat seems very expensive wheres 13% reducing isnt that bad a deal apparantly and I think the ROI varies very heavily from one city to another.
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