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


Reply
 
Thread Tools Search this Thread
Old 28th July 2007, 23:47   #1
BHPian
 
Join Date: May 2006
Location: pune
Posts: 91
Thanked: 0 Times
Default best auto finance from preclosure prespective

Hi,
i did see posts about better interest rate. pnb seems to be providing good interest rate 10%. hdfc 11%
wht i m looking at low preclosure cost. hdfc is 5%. is that a standard or there are lower options which u guys have come across.
thanks
vinodbijlani is offline   Reply With Quote
Old 28th July 2007, 23:51   #2
Senior - BHPian
 
esteem_lover's Avatar
 
Join Date: Jul 2006
Location: Madras/Py
Posts: 7,554
Thanked: 445 Times
Default

find out from PNB. I think the nationalised banks do not have any preclosure penalties.
esteem_lover is offline   Reply With Quote
Old 29th July 2007, 00:02   #3
BHPian
 
Join Date: May 2006
Location: pune
Posts: 91
Thanked: 0 Times
Default

thanks esteem lover for quick reply. will talk to pnb on monday. any idea if i would need a reference/guarantor or an account with them?
thanks again
vinodbijlani is offline   Reply With Quote
Old 29th July 2007, 00:08   #4
Senior - BHPian
 
esteem_lover's Avatar
 
Join Date: Jul 2006
Location: Madras/Py
Posts: 7,554
Thanked: 445 Times
Default

I don't think you need any of the things mentioned by you. You will have to have an account in some bank, a good credit history, a pay certificate or the latest IT return, some docement for residential proof, like a ration card or a telephone bill. maybe some other small things i have left out. i would advice you to take the loan from a nationalised bank only.
cheers
esteem_lover is offline   Reply With Quote
Old 29th July 2007, 11:46   #5
Team-BHP Support
 
theMAG's Avatar
 
Join Date: May 2006
Location: Long Island, NY
Posts: 7,036
Thanked: 1,473 Times
Default

Moderators, pl delete this post. It got repeated

Last edited by theMAG : 29th July 2007 at 11:47.
theMAG is offline   Reply With Quote
Old 29th July 2007, 11:46   #6
Team-BHP Support
 
theMAG's Avatar
 
Join Date: May 2006
Location: Long Island, NY
Posts: 7,036
Thanked: 1,473 Times
Default

The nationalized banks in general have little to no preclosure fees. And the option of flexi EMIs
theMAG is offline   Reply With Quote
Old 31st July 2007, 11:09   #7
BHPian
 
Join Date: May 2006
Location: pune
Posts: 91
Thanked: 0 Times
Default

checked with pnb preclosure is 2%
does SBI also have preclosure charge too?
vinodbijlani is offline   Reply With Quote
Old 31st July 2007, 11:11   #8
BHPian
 
greatpower's Avatar
 
Join Date: Apr 2006
Location: Philadelphia
Posts: 118
Thanked: 4 Times
Default

SBI also has 2% charge.
greatpower is offline   Reply With Quote
Old 31st July 2007, 11:31   #9
Senior - BHPian
 
itwasntme's Avatar
 
Join Date: May 2007
Location: BANGALORE
Posts: 2,273
Thanked: 1,338 Times
Default

PNB MAY ask for guarantor in case you have not stayed in your city for long enough etc. Try IOB. They didn't ask me for a guarantor.
itwasntme is online now   Reply With Quote
Old 31st July 2007, 11:47   #10
Senior - BHPian
 
vkochar's Avatar
 
Join Date: Aug 2006
Location: Delhi / Agra / London
Posts: 2,031
Thanked: 214 Times
Default

Quote:
Originally Posted by vinodbijlani View Post
checked with pnb preclosure is 2%
does SBI also have preclosure charge too?
Is preclosure 2% that you have mentioned on the Outstanding amount ?

For example - If I take a Loan for 3lacs for 3 yrs. Lets say EMI is 10000 P.M. After 2 Years I want to finish this off, then do I pay 2% on the balance 1.2L left. I might sound like a fool asking these stupid questions, but sometimes these banks really make a fool out of us.

Cheers !!
vkochar is offline   Reply With Quote
Old 31st July 2007, 11:57   #11
BHPian
 
Join Date: May 2006
Location: pune
Posts: 91
Thanked: 0 Times
Default

thts a good question to ask - pay 2% on the balance 1.2L left?
will ask
vinodbijlani is offline   Reply With Quote
Old 31st July 2007, 12:15   #12
Senior - BHPian
 
narayan's Avatar
 
Join Date: Aug 2006
Location: Singapore
Posts: 2,772
Thanked: 1,166 Times
Default

foreclosure is typically on the PRINCIPAL outstanding as on date of closure ...
further, its always advisable to take in WRITING the foreclosure/preclosure charges when u take the loan itself bcos these things are typically a call the bank takes while u close and depends on people u know in the bank, ur other relationship with the bank by way of a/cs u hold etc...

so pls take in writing at the outset itself...
narayan is offline   Reply With Quote
Old 1st August 2007, 10:30   #13
BHPian
 
WhiteKnight's Avatar
 
Join Date: Mar 2006
Location: Bangalore
Posts: 828
Thanked: 73 Times
Default

Quote:
Originally Posted by narayan View Post
bcos these things are typically a call the bank takes while u close and depends on people u know in the bank, ur other relationship with the bank by way of a/cs u hold etc...
@narayan, thank you!. Good to have guys in the know.

So, essentially it is a hit and try policy. Some unsuspecting customer may pay whatever being asked by the "MNC" bank. If the MNC bank bangs its head agaist a customer who is strong, and has time and resource to kick back, then the bank retracts its claws and goes hiding

Sounds similar to the "late payment fee" so conveniently used by credit card vendors
WhiteKnight is offline   Reply With Quote
Old 1st August 2007, 10:42   #14
BHPian
 
Join Date: Jul 2007
Location: Chennai
Posts: 74
Thanked: Once
Default

Quote:
Originally Posted by WhiteKnight View Post
@narayan, thank you!. Good to have guys in the know.

So, essentially it is a hit and try policy. Some unsuspecting customer may pay whatever being asked by the "MNC" bank. If the MNC bank bangs its head agaist a customer who is strong, and has time and resource to kick back, then the bank retracts its claws and goes hiding

Sounds similar to the "late payment fee" so conveniently used by credit card vendors
yes. you are correct. Almost all the Banks follows this kind of procedure, including the nationalized banks. RBI and and the Government have to straighten this situation and give some clear guidelines regarding lending and recollection procedures.

While taking loan also, we are not at discretion to ask the bank to change some clauses in the agreement, if we need the loan we just have to sign whatever papers they show us.
gmano is offline   Reply With Quote
Old 1st August 2007, 13:04   #15
Senior - BHPian
 
narayan's Avatar
 
Join Date: Aug 2006
Location: Singapore
Posts: 2,772
Thanked: 1,166 Times
Default

Quote:
Originally Posted by gmano View Post
yes. you are correct. Almost all the Banks follows this kind of procedure, including the nationalized banks. RBI and and the Government have to straighten this situation and give some clear guidelines regarding lending and recollection procedures.

While taking loan also, we are not at discretion to ask the bank to change some clauses in the agreement, if we need the loan we just have to sign whatever papers they show us.

all banks do this..im a banker...so am not trying to defend any bank. but thing is in the loan agreement all these would be speicified...

typically foreclosure charges are meant to put a penalty on cms bcos ( banks when they lend to a client for , say 3 years, they expect a certain interest income and also create certain liability profiles to fund this )...

at the end of day, as a customer we need to be aware and take the best deal from our point of view...
narayan 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
Kotak Mahindra Preclosure charges funda2max Indian Car Loans & Insurance 20 19th September 2017 19:07
ARTICLE: How to get the lowest EMI & the best Finance Deal GTO On buying a car 199 29th July 2017 19:10
Auto finance for Alto LXi varunroy Indian Car Loans & Insurance 18 31st March 2007 14:58
My experience with HDFC Finance (Auto Loan) VtecDeGr8 Indian Car Loans & Insurance 16 25th January 2006 03:41


All times are GMT +5.5. The time now is 18:16.

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