Car Loan Query

[navin00]

hey guys thanx for creating this forum this is been a gr8 help for the newbies..thanx moderator
hey guys if any of u r from kolkata i wanted to know that which is the best car showroom for maruti suzuki ! who has got the best deal in here...?which bank is the best for car loan and for insurance help

[manish_symc]

AXIS bank quoting 10% interest rate for 5 years - is it worth?

Hi Friends,
Today, I went to maruti showroom for Swift LDi and I liked it very much. I asked sales person about finance option, he told me that they have tie up with AXIS bank and the loan interest rate for Maruti cars is 10% and offer valid is till 31th March.

Per lakh EMI is Rs/-2107
Processing fee - Rs/- 2700-3000
Advance EMI - YES

Could you please tell me whether above rate of interest is good to go?

Thanks,

[Rash001]

I have got my loan processed through SBI for my VDI and the experiece was SWIFT and SWEET. Got the loan processed in 4 working days. Got the cheque yesterday. 11.25 % is the interest for 5 years. No Pre EMI. Processing fee of 0.25% ( worked around to 1250 for me ). And the pre-closure fees etc is also better than other banks. Good work SBI

[Gautam Misra]

Before taking a car loan you must also consider liquidating some of your Fixed deposits which give your around 3.5%-4% returns (9.5%-6%inflation) per annum. Here are some of the advantages and disadvatages of takin a loan IMO -

Advantages-

1. If you do not have the liquid cash it enables you to buy the car at the first place.
2. Income Tax benefits- Interest component per year is reduced from your Income
3. Allows you to have substantial cash reserves which may be essential in emergency situations

Disadvantages-

1. You end up paying substantial amounts more towards interest.
2. The interest rates have shot up in the last one year and for several people the EMIs have become prohibitive.

[mtnrajdeep]

There is no income tax benefit on the car loans! It is only available for the house loans AFAIK. Of course, income tax benefit comes in only if you opt for a lease through the compoany you work for and it is only for those companies that have such schemes for their employees!

[shatrughna]

I am sure many among us are also entrepreneurs and they can get the cars in their firms name. The EMIs paid and depreciation I believe get set off as expenses , hence, reduced tax liability.

[kingshan]

And guys don't be surprised if the car financing body has rejected ur application, eventhough you have a good income and have provided all the relevant documents, The CIBIL report plays a vital role here..BEWARE !!

[djay99]

ICICI guys are quoting 13% pa interest rate for 5 year tenure. They also said that interest rates have been increased w.e.f 1 april 2008. Earlier it was 11.75%.
I have form 16 for 1 year. Can i get a loan from any PSU banks?

[csentil]

Originally Posted by djay99

ICICI guys are quoting 13% pa interest rate for 5 year tenure. They also said that interest rates have been increased w.e.f 1 april 2008. Earlier it was 11.75%.
I have form 16 for 1 year. Can i get a loan from any PSU banks?

Do not, repeat do not go to ICICI. You can read this forum for horror stories. :-)

Increased interest rates? For what reason??

You would also need address proof (government banks, bsnl, Voter id, passport only) and ID proof. some banks ask for a guarantor as well.

Try Axis bank. heard they have good rates. Indian Bank, Corporation bank also have competitive rates.

[jkdas]

Originally Posted by djay99

ICICI guys are quoting 13% pa interest rate for 5 year tenure. They also said that interest rates have been increased w.e.f 1 april 2008. Earlier it was 11.75%.
I have form 16 for 1 year. Can i get a loan from any PSU banks?

Go for PSU banks. You will still loans at 11% or even less. ICICI told you a cock and bull story. Check other thread regarding car loans.

[mjothi]

Yes. Do not go with any private banks. Best would be PSU's.
SBI, Indian bank, Canara bank are all good in this.

Btw, there are also Jewel Loans avaialble @ 8% or less interest. If you have gold jewels sitting in Locker, this is best to go for. 2 reason,
1. interest rate is very low and for diminishing value
2. Jewel is very safe in locker
The interest rate depends on the loan value. So, if they say upto 50K it is 7% and above 50K it is 8% like that, take 2 loans. Ofcourse in your name + spouse or mother...
Anyday, the interest would be lesser than that of the car loan.

[shankar.balan]

ICICI gave me a rate of 10.75% for my new Scorp
Dont worry so much about the percentage.
Ask always what the EMI per Lac is.
You can get as low as 1130 to 1150 per lac for a big car - what they call C or D segment these days though Im not sure which segment the scorp belongs to frankly.
all the DSE chaps carry a small paper ready reckoner with the various allowable emis per lac.
Also ask for a reduction on processing fee
If the dealer/ DSE wants your business badly enough he will reduce it and pay the differential himself

hope this helps

Originally Posted by jkdas

Go for PSU banks. You will still loans at 11% or even less. ICICI told you a cock and bull story. Check other thread regarding car loans.

[zaks]

Originally Posted by Rash001

I have got my loan processed through SBI for my VDI and the experiece was SWIFT and SWEET. Got the loan processed in 4 working days. Got the cheque yesterday. 11.25 % is the interest for 5 years. No Pre EMI. Processing fee of 0.25% ( worked around to 1250 for me ). And the pre-closure fees etc is also better than other banks. Good work SBI

You really got it that quick! I have applied for loan from SBI and its already 10days now and the guys in there said he has sent it for approval and will probably take 2 weeks but the thing is I have already booked my car. So did it come by post or did you personally collect it from the bank? I am wondering what to do if they delay and finally not grant it

[PAVAN KADAM]

Hey guys,

Car loan rates vary depending on what segment of cars u go for.

Each and every bank rates are regulated by RBI lending rates.

So the rates will almost remain similar.

The present rates for Auto loans in BLR stands at 11.75% upto 13%.

This rates is ok. But beyond this is a strict no no.

Simple documentation if you are taking a 70% and lesser finance would be
1) 3 mths Banking
2) Photo/ id proof/ and resi proof

If ur funding goes beyond 70% then will all the hassles of numerous documents arise.

Our Safari Loan stands at 9% form HDFC with 50% funding. and rst by cash.
its two years now.

The rates have gone upwards the present days.

They Say U CANT HAVE THE CAKE AND EAT IT TOO

[krazydriver84]

Hey I need to know something,

I presently have a car loan from HDFC, which is like charging me a phenomenal interest rate.

Is it possible for me to transfer the loan to some other bank like AXIS, and ask AXIS to pay off HDFC for the remaining amount and I continue my finance with AXIS?

Please guide me on this.