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Old 7th April 2008, 15:27   #1
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Default Loan for a Used Palio

Hi Guys,

I'm looking for a used Palio and wd opt for used car loan if i get a good conditioned car which cost more than 2Lac however had few queries regarding that:

1. Any issues taking a loan for Fiat Palio from the banks side as i heard they have their set of car companies to which they provide loans?
2. Which bank wd be best for cheap loan interest and hassel free process(have checked SBI and they qouted 15.25%)?
3. If the deal is struck, what all things I shd take care off in terms of transfer of docs and also insurance?

I think this wd be a gr8 help for me and all ppl who are opting for used car on a loan!

Thanks n cheers~
Rudrah
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Old 3rd June 2008, 00:38   #2
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15.25 % I guess is what SBI offers across all branches.

In the case of the used car, is the loan processed immediately ? So as to the pay the seller the entire amount upfront ?

Last edited by Fountainheader : 3rd June 2008 at 00:41.
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Old 3rd June 2008, 00:49   #3
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The last I read some months back, banks were reluctant to provide loans for new (petrol) Palios, let alone pre-owned. Things might have changed for the better now.

Try going in with nationalized banks over private ones.
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Old 3rd June 2008, 07:23   #4
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Quote:
Originally Posted by theMAG View Post
The last I read some months back, banks were reluctant to provide loans for new (petrol) Palios, let alone pre-owned. Things might have changed for the better now.
Situation is almost the same over this side as well. Banks are reluctant to give loan on Palio cars due to the poor resale value it has. No idea about used Palio though!

2 lakh? Which year/engine are you looking for?
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Old 3rd June 2008, 08:20   #5
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Depending on the company you work for the ROI will be lower for a personal loan when compared to a used car loan.
When I bought my car the ROI for personal loan was 11% and for used cars at about 14%.

With a personal loan you don't have to bother about the bank approving your car purchase.
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Old 3rd June 2008, 08:37   #6
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do also consider co-operative banks. they are easier to deal with. ( compared to private banks )
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Old 3rd June 2008, 11:39   #7
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Rudrah,

IMHO, think twice before going in for a used car loan as at the end of the loan tenure, you will end up paying almost 1.5 times the amount borrowed. why not wait for couple more months? once punto and linea are released the prices of petrol palios will further come down
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Old 3rd June 2008, 12:14   #8
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Quote:
Originally Posted by ravikn View Post
Rudrah,

IMHO, think twice before going in for a used car loan as at the end of the loan tenure, you will end up paying almost 1.5 times the amount borrowed. why not wait for couple more months? once punto and linea are released the prices of petrol palios will further come down
Linea will be launched very soon. But few reliable sources (Motor Vikatan - tamil Auto Magazine) say Punto is only for early next year.
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Old 5th June 2008, 18:33   #9
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Quote:
Originally Posted by Fountainheader View Post
15.25 % I guess is what SBI offers across all branches.

In the case of the used car, is the loan processed immediately ? So as to the pay the seller the entire amount upfront ?
They would first evaluate the car and depending on that they would provide the Loan amount. They said it wold be processed faster if all documents of the seller are clear.

Quote:
Originally Posted by theMAG View Post
The last I read some months back, banks were reluctant to provide loans for new (petrol) Palios, let alone pre-owned. Things might have changed for the better now.

Try going in with nationalized banks over private ones.
I've been approaching SBI, PNB, Abhudaya...

Quote:
Originally Posted by CrAzY dRiVeR View Post
Situation is almost the same over this side as well. Banks are reluctant to give loan on Palio cars due to the poor resale value it has. No idea about used Palio though!

2 lakh? Which year/engine are you looking for?
Year would be around 2004 and above and mostly for a 1.6 Engine or else 1.2 NV Sports

Quote:
Originally Posted by bblost View Post
Depending on the company you work for the ROI will be lower for a personal loan when compared to a used car loan.
When I bought my car the ROI for personal loan was 11% and for used cars at about 14%.

With a personal loan you don't have to bother about the bank approving your car purchase.
Now this is something I would like to know. What if I could take up a Personal Loan rather than a Used Car loan? Is this possible?

Quote:
Originally Posted by ravikn View Post
Rudrah,

IMHO, think twice before going in for a used car loan as at the end of the loan tenure, you will end up paying almost 1.5 times the amount borrowed. why not wait for couple more months? once punto and linea are released the prices of petrol palios will further come down
Quote:
Originally Posted by pingping View Post
Linea will be launched very soon. But few reliable sources (Motor Vikatan - tamil Auto Magazine) say Punto is only for early next year.
Linea would be almost this Year end while Punto would be almost 1 year from now! The wait wd be too long, dude! And now with the new Petrol prices at Sky high, probably the long wait might help
Maybe I should now think for a Palio with LPG/CNG!
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Old 5th June 2008, 18:44   #10
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Quote:
Originally Posted by rudrah View Post

Now this is something I would like to know. What if I could take up a Personal Loan rather than a Used Car loan? Is this possible?

You can take a personal loan for anything.
Its a simple loan wherein the bank checks your ability to pay back and gives you money.

Personal loan, Personal loans, Easy personal loans, Low interest Personal Loans, Personal Finance, Marriage Loans

Personal Loan. Low interest rate personal loans | HSBC Bank India

The eligable amount is something like 10 or 15 times your takehome.

Once you have the money its yours to spend.
Do whatever you want with it. Buy a Car, buy a computer or go on a holiday.
No one cares.

Just pay the EMI on time.
I have taken loans from Standard Chartered and Icici.
No complaints on either of these banks.

Take care on the interest part.
The interest % is dependent on your credit history and mostly on where you work. For example when I took my loan I was offered 11% by Icici but this was for my company. Otherwise the normal rate was in the range of 16% at that time.

Also there is no entry in the RC book of the car from the bank.
The car and the loan remain as separate entities.

Last edited by bblost : 5th June 2008 at 18:47.
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Old 13th June 2008, 20:52   #11
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Even I opted for personal loan instead of car loan while buying 2nd hand esteem. Govt. banks were not willing to give a car loan due to the age of the vehicle (4 years old) and private banks were quoting 14-15% ROI.
Finally I managed to get personal loan at 10.5% from ICICI (due to corporate discount).
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Old 16th June 2008, 16:46   #12
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Quote:
Originally Posted by bblost View Post
You can take a personal loan for anything.
Its a simple loan wherein the bank checks your ability to pay back and gives you money.

The interest % is dependent on your credit history and mostly on where you work. For example when I took my loan I was offered 11% by Icici but this was for my company. Otherwise the normal rate was in the range of 16% at that time.

Also there is no entry in the RC book of the car from the bank.
The car and the loan remain as separate entities.

Sadly I'm not eligible for a corporate discounts for Personal loan as the company do not come under their list so I think I might end up paying the same interest rates as of the used car loan's interest rate, right guyz?
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