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


Reply
 
Thread Tools Search this Thread
Old 7th June 2007, 15:28   #1
Senior - BHPian
 
iTNerd's Avatar
 
Join Date: Apr 2007
Location: Imphal/Noida
Posts: 1,069
Thanked: 500 Times
Default Is this a good deal - HDFC 11.5% 3yrs

Hey guys, I am pretty close to getting approval for a car loan ..Approached my bank HDFC today and had a pre-approved loan of 5.4 lakhs in my account. I am planning to take a 5 lakhs loan to buy a car (SX4) and after some bargaining, I got the following offers:

On 5 lakhs
11.5% (3 yrs).
12.25% (4 yrs)
12.50 (5 yrs)

In terms of EMI per lakh, its something like
Rs. 3267/lakh (3 yrs)
Rs. 2619/lakh (4 yrs)
Rs. 2227/lakh (5 yrs)

*Monthly reducing

EMI comes out to be around Rs. 16500...

I just wanted to know if this is a good deal... I am pretty new to EMI and car load things and would appreciate any of your advice and suggestions regarding this... You guys are great!
iTNerd is offline   Reply With Quote
Old 8th June 2007, 01:06   #2
Senior - BHPian
 
kuttapan's Avatar
 
Join Date: May 2007
Location: Melbourne
Posts: 1,155
Thanked: 12 Times
Default

For 5lac loan @12.5% for 60 months, EMI should be 11,249.
For 5.4 lacs, it is 12149(rounded to the nearest rupee).

For 5 lacs @11.5 for 36 months, correct EMI is 16,488. EMI per lac would be 3297.
kuttapan is offline   Reply With Quote
Old 8th June 2007, 11:31   #3
GTO
Team-BHP Support
 
GTO's Avatar
 
Join Date: Feb 2004
Location: Bombay
Posts: 47,758
Thanked: 89,462 Times
Default

Hi ITNerd,

I think you may find this article helpful : Link (ARTICLE: How to get the lowest EMI & the best Finance Deal)

Do check out the excel sheet in that article, since it will help you to accurately calculate interest / EMI rates.
GTO is offline   Reply With Quote
Old 8th June 2007, 12:11   #4
BHPian
 
shivkumar19's Avatar
 
Join Date: Apr 2007
Location: Bangalore
Posts: 58
Thanked: 37 Times
Default

check out SBI also. i got 12.25% for 5 yrs .
shivkumar19 is offline   Reply With Quote
Old 8th June 2007, 12:54   #5
Team-BHP Support
 
mobike008's Avatar
 
Join Date: Sep 2006
Location: Hyderabad
Posts: 10,746
Thanked: 7,964 Times
Default

I suggest you skip ICICI/HDFC and go for SBI or another other nationalised banks like PNB, IOB etc.

Apart from lower interest rates they also calculate your loan on " Daily Diminishing".

Insist on DD feature you will save a pile of money
mobike008 is offline   Reply With Quote
Old 8th June 2007, 13:23   #6
Senior - BHPian
 
iTNerd's Avatar
 
Join Date: Apr 2007
Location: Imphal/Noida
Posts: 1,069
Thanked: 500 Times
Default

hey GTO, thanks a lot for that link.. and the excel sheet is really useful... I have two loan offers from UTI and HDFC. I am not able to decide which one I should go for..

HDFC (I have my saving and CC accounts with them.)

Rs 5 lac @11% 3 yrs for which EMI comes to be around Rs. 16225
Net Interest= Rs. 84100
Processing fee=Rs. 2300



from UTI (through dealership)
Rs 5 lac@13.75 3 yrs with 4% payout. EMI comes to around Rs. 16835
4% Payout on net amount = Rs. 19326
Net Interest=Rs. 10,6060 - 19,326= Rs. 86734
Processing fee= Rs. 1100

Clearly, HDFC is giving a competitive offer (afte hard negotiation) and already have a pre-approved loan of 5.5 lacs on my account. So no documentation and final approval is just a day or two. But When I insist that I would be goin with HDFC bank, my dealer told me horrible stories about dealing with third-party banks and they say they won't be liable for it if something goes wrong from the bank. Clearly the dealer was not happy about not goin with UTI.

I just wanted to ask:
* benefit of going with the dealership linked banks? If so how?
* UTI Prepayment penalty?
* does going with dealership bank fasten the delivery of vehicle (SX4)?
* turnaround time for UTI loan? (though the dealership consultant said they will take care of any problem)
* Finally, which of these two banks should I go for putting reliability in concern?

Please guys, will be a big favor in helping me out.
iTNerd is offline   Reply With Quote
Old 8th June 2007, 13:43   #7
BHPian
 
TRANSAM's Avatar
 
Join Date: Feb 2006
Location: MUMBAI
Posts: 558
Thanked: 46 Times
Default

apply through state bank of patiala, they offer at 11.25% or may be even 11%. for a private bank 11.5% is too good a deal
TRANSAM is offline   Reply With Quote
Old 8th June 2007, 14:41   #8
Senior - BHPian
 
iTNerd's Avatar
 
Join Date: Apr 2007
Location: Imphal/Noida
Posts: 1,069
Thanked: 500 Times
Default

Quote:
Originally Posted by mobike008 View Post
I suggest you skip ICICI/HDFC and go for SBI or another other nationalised banks like PNB, IOB etc.

Apart from lower interest rates they also calculate your loan on " Daily Diminishing".

Insist on DD feature you will save a pile of money
I could not go with Nationalised banks as I only started working last year and does not have tax returns documentation for the last two years..
iTNerd is offline   Reply With Quote
Old 8th June 2007, 22:59   #9
Senior - BHPian
 
kuttapan's Avatar
 
Join Date: May 2007
Location: Melbourne
Posts: 1,155
Thanked: 12 Times
Default

SBI will not compromise on any paperwork, they go by the rule book only.

I had no problem with my dealer in taking an out-of-house finance, maybe you should talk tough with your dealer.
kuttapan is offline   Reply With Quote
Old 9th June 2007, 00:43   #10
BHPian
 
kamy450's Avatar
 
Join Date: May 2007
Location: Bangalore
Posts: 244
Thanked: 0 Times
Arrow

I have got loan from HDFC, this is my third car loan in last 5 years. one was from SBI and rest two with HDFC.

My view is to go with SBI or IOB. i had good exp with them specially when i was closing my loan account with SBI.

HDFC carries hidden charges and when u approach them for loan closure they will not be easy on that....

Regarding your dealer prefering for UTI is simple he has some commision fixed for loan with DSA. its none of his business from where u get your car loan. he should be getting his car money where ever u go for loan.

Good luck !!
kamy450 is offline   Reply With Quote
Old 9th June 2007, 12:48   #11
Team-BHP Support
 
mobike008's Avatar
 
Join Date: Sep 2006
Location: Hyderabad
Posts: 10,746
Thanked: 7,964 Times
Default

Quote:
Originally Posted by iTNerd View Post
I could not go with Nationalised banks as I only started working last year and does not have tax returns documentation for the last two years..
Come on, that should not be a criteria for SBI to reject your loan application. I am sure you can find a way to convince them
mobike008 is offline   Reply With Quote
Old 9th June 2007, 14:46   #12
BHPian
 
TRANSAM's Avatar
 
Join Date: Feb 2006
Location: MUMBAI
Posts: 558
Thanked: 46 Times
Default

yes itnerd, they get the car (hypo) as security, till you pay up the emi's, so i doubt its a criteria when you have started working? i suggest you do another recce on this?
TRANSAM is offline   Reply With Quote
Old 9th June 2007, 16:35   #13
Senior - BHPian
 
abhibh's Avatar
 
Join Date: Sep 2005
Location: Back in the HOOD near you!
Posts: 2,767
Thanked: 33 Times
Default

Quote:
Originally Posted by mobike008 View Post
Come on, that should not be a criteria for SBI to reject your loan application. I am sure you can find a way to convince them
Well even i don't file income tax myself as of now and i approached my BANK HDFC like a month back i was eligible for everything as my last 3 months credits were like 1 lac debits being 50+k. I asked them about car loan and they were ready to give me loan without much documentation but when the guy run some test on computer i was not eligible as minimum age was 21 and i m still 20 .

Also the guy said i will be eligible for a free Titanium Credit Card from HDFC as i have my account with them for 3 years then + loan will be easy

Check if your documents are correct plus try to bring down your EMI I heard sm1 i know got a loan for 5 years with an EMI if Rs 2167 from SBI

Plus i have heard there is one car finance company which provide car loan to people who dont file INCOME TAX. I will try to remember it and let you know.
abhibh is offline   Reply With Quote
Old 11th June 2007, 02:48   #14
Senior - BHPian
 
iTNerd's Avatar
 
Join Date: Apr 2007
Location: Imphal/Noida
Posts: 1,069
Thanked: 500 Times
Default

ok... some update on the HDFC bank loan.. though they say they are offering 11% IR on 5 lac (3 yrs) for which EMI comes out to be Rs. 16,225.. I recalculated the EMI using the 'excel sheet 'Loan Amortization Schedule' from nikunj_cal and weirdly the interest rate for the EMI of Rs. 16225 (on 5 lacs for 3 yrs tenure) comes out to be 10.39% precisely.. Is this correct? Think I am missing something here???
iTNerd is offline   Reply With Quote
Old 22nd June 2007, 20:50   #15
BHPian
 
Join Date: Oct 2005
Location: Bangalore
Posts: 386
Thanked: 9 Times
Default

Quote:
Quote:
Originally Posted by iTNerd View Post
ok... some update on the HDFC bank loan.. though they say they are offering 11% IR on 5 lac (3 yrs) for which EMI comes out to be Rs. 16,225.. I recalculated the EMI using the 'excel sheet 'Loan Amortization Schedule' from nikunj_cal and weirdly the interest rate for the EMI of Rs. 16225 (on 5 lacs for 3 yrs tenure) comes out to be 10.39% precisely.. Is this correct? Think I am missing something here???
Check out this calculator. Should clear the air.

Personal Loans India: Best Personal Loan Rates in India

So long....

Last edited by varunroy : 22nd June 2007 at 20:52.
varunroy 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
Loan query - is this loan deal OK (From HDFC) BenjiRoss Indian Car Loans & Insurance 100 2nd September 2010 16:51
HDFC Bank Car Loan- Is this a good finance deal ? manumani Indian Car Loans & Insurance 7 22nd July 2010 21:03
VW Jetta limited time offer 3yrs/45,000km maintence free package + Insurance Free Sahil The Indian Car Scene 15 17th April 2009 23:00
Good deal or Bad deal?? dr chill Tyre & Alloy wheel Section 0 27th April 2006 20:45
Got 15"alloys and tyres,good deal or bad deal? .anshuman Tyre & Alloy wheel Section 10 4th April 2006 12:58


All times are GMT +5.5. The time now is 23:18.

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