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


Reply
 
Thread Tools Search this Thread
Old 5th July 2008, 13:57   #46
Senior - BHPian
 
aaggoswami's Avatar
 
Join Date: May 2007
Location: Vadodara
Posts: 4,675
Thanked: 1,427 Times
Default

Quote:
Originally Posted by dicorex4x4 View Post
(1)

1. Read every page of whatever document is shown to you.

3. Take photocopies of every document you signed. Put a date underneath your signature (this is a good habit anyway)
Quote:
Originally Posted by dicorex4x4 View Post
(2)

Or somebody who has registered a vehicle in company name with finance from a private bank?


1)
Agree with you as far taking photo copies of documents is concerned. But sometimes the dealer salesmen are too quick and dont allow this. They just keep one engaged in smart and fine language talking. Happened to someone at my father's plant.

2)
Our Baleno is registered in company name and is financed by some finance company. We were never asked to sign any Blank Documents.
aaggoswami is offline   Reply With Quote
Old 5th July 2008, 14:20   #47
BHPian
 
viper_711's Avatar
 
Join Date: Jan 2008
Location: Bangalore
Posts: 346
Thanked: 55 Times
Default

Quote:
Originally Posted by srijit View Post
Hi dobriyal, have you tried with any of the nationalised or public sector banks? Like SBI, Federal Bank, etc?
I dont think they would do this kind of thing to you, but you might not get as good a rate as with private banks.
On the contrary, you get a slightly better rate - the only issue as i understand from SBI guidelines in B'lore is that you have to personally go to the St Marks road branch where they have the auto insurance cell, sign up all documents there and collect the DD personally.
This means more involvement from the customer unlike private banks who send representatives to a customer's home/office.
viper_711 is offline   Reply With Quote
Old 12th July 2008, 03:55   #48
BHPian
 
alias's Avatar
 
Join Date: Feb 2008
Location: ಬೆಂಗಳೂರು
Posts: 334
Thanked: 6 Times
Default

hi

i ahve a question here a friend of mine had bought a 2nd hand honda city on loan and in a few months lost his job now he is not able to pay the emis from 3-4 months ,he cannot sell the car and he doesnt wanna keep it either cause of his finacial state
so he was asking me what is the procedure of getting the car seized
since i wasnt aware of it i just told him not to however since he cannot even pay the emi and the loan amount unfortunatly more than the cost of the car now cannot sell either

can you guys please tell me what is the procdure of getting the car seized
how do they do it and what all it involves.

regards
alias
alias is offline   Reply With Quote
Old 12th July 2008, 11:00   #49
GTO
Team-BHP Support
 
GTO's Avatar
 
Join Date: Feb 2004
Location: Bombay
Posts: 47,763
Thanked: 89,535 Times
Default

Quote:
Originally Posted by alias View Post
so he was asking me what is the procedure of getting the car seized
since i wasnt aware of it i just told him not to however since he cannot even pay the emi and the loan amount unfortunatly more than the cost of the car now cannot sell either
Hi Alias, Sorry to hear about your friend's financial state. Broadly, I'd give him three options:

1. If he wants to preserve his credit history, it is best for him to find the best market price for his car, sell it, pay the difference to the finance company and close the loan.

2. Look for a friend / relative who is willing to take ownership of the car and pay the EMIs to him, which in turn he will pay the finance company with.

3. If none of the above are applicable (he will still lose money), best to approach the finance company and explain the situation. Let them seize the car.
GTO is offline   Reply With Quote
Old 12th July 2008, 11:05   #50
Senior - BHPian
 
narayan's Avatar
 
Join Date: Aug 2006
Location: Singapore
Posts: 2,773
Thanked: 1,168 Times
Default

Quote:
Originally Posted by dobriyal View Post
I recently bought a Palio. I had wanted to go for loan for about 30% of the value. The showroom, of course, was ready with an offer from Tata Motor Finance. The executive was courteous, worked out an "attractive deal" for me and made me feel at home.

All was well till the point I was given the contract document to sign. Unlike many other customers (possibly) I started reading the contract document. The contract itself was short, but I was shocked to find that every imaginable RTO form was bound to the contract and I was supposed to sign all of them ... blank. Blank forms for:
  • Applying for duplicate copies of registration
  • Applying for re-registration
  • Selling the car to ...!
  • Etc. etc.
I asked them the obvious and got an obvious answer: These are required for "due diligence".
"Of course, but what is the legality of this process?"
"All banks to it. This is according to RBI guidelines."

RBI Guidelines?! Whose side is the RBI on? Probably that's what they said when they gave the rights to their 'gundas' to snatch vehicles from customers. Now with the rap from the courts, here's an innovative way of 'goondagiri'. Pile the law against the customer so that they can get speedy 'justice' in case of default.

Wait a minute. That statement sounds very fair. But here's the reality. If you default, or if the loan company's manager/employee/whoever is unhappy with you:
  • They can register the vehicle on someone else's name and put you in jail for possessing the vehicle without the owner's consent
  • They can do this the very next day after you got delivery of the vehicle and you would also loose all the money you paid as down-payment
  • They can steal the vehicle, instead of snatching, and you will never be able to claim anything because they would have already re-registered the vehicle on someone else's name
  • They can again put you in jail because their contract says that they have the right to encash all the cheques at any time they like. So the cheques will bounce whenever Mr/Ms X is unhappy with you for being a bad customer or (technically) even for being a bad neighbor
So, what's better? The old way - to let the goons give us two jabs and snatch our cars/bikes from us, or the new way - to let the goons with white collars steal our vehicles, drag us to court for "stealing their vehicle" (because it is already registered on someone else's name), and drag you to court again for bounced cheques.

I prefer none, so I did not take the finance. I did try HDFC too and they told me about the same requirements. So, the whole damn system is the same and I don't buy it. I had the option of chucking the option of finance but most of us don't have it. And most of have been signing these forms (I don't know whether it's legal or not) for months and years. We can't change the system on our own, but united we possibly can. Let us all shout about the issue and refuse to sign the dotted lines as much as we can. Any suggestions? Could someone shed some light on the legality of this process?


[I confess that I dropped the idea of finance almost immediately and haven't explored all options. Therefore, any suggestions for the benefit of future loan takers would be great.]
obviously u need to think twice before signing any form of blank documents

by the way, u missed out one way - take finance and pay on time
narayan is offline   Reply With Quote
Old 14th July 2008, 20:31   #51
BHPian
 
alias's Avatar
 
Join Date: Feb 2008
Location: ಬೆಂಗಳೂರು
Posts: 334
Thanked: 6 Times
Default

Quote:
Originally Posted by GTO View Post
Hi Alias, Sorry to hear about your friend's financial state. Broadly, I'd give him three options:

1. If he wants to preserve his credit history, it is best for him to find the best market price for his car, sell it, pay the difference to the finance company and close the loan.

2. Look for a friend / relative who is willing to take ownership of the car and pay the EMIs to him, which in turn he will pay the finance company with.

3. If none of the above are applicable (he will still lose money), best to approach the finance company and explain the situation. Let them seize the car.


thanks a lot for the response sir

the issue is the car has an emi of like 12k/month as he i think has tried looking for every one who can pay the emi and keep the car but in vain
so i guess his last option is to give it up to the bank
alias is offline   Reply With Quote
Old 19th April 2009, 18:32   #52
BHPian
 
pedrolourenco's Avatar
 
Join Date: Apr 2009
Location: Margao, Goa
Posts: 758
Thanked: 450 Times
Infractions: 0/1 (4)
Default

This is what ICICI does
When you are left with 3 or 4 installments to pay (meaning they have recovered the principal and also made a profit), the don't cash your cheques saying they were rejected or something. They then demand a huge fine for defaulting and drag the procedure for a couple of months. Now you don't have any option to pay the fine. Obviously you don't want to as it was not your fault and you'll try to fight. That's when they use the papers you've signed and seize your car and sell it.

On a positive note, the RTO in Goa refuses to transfer a car or remove the hypothecation endorsement on the RC in case the car was financed by ICICI. They want the original owner to be present in the RTO office just the verify that he was not victimised by ICICI. (Just goes to show the reputation of ICICI).
pedrolourenco is offline   Reply With Quote
Old 23rd April 2009, 15:56   #53
BHPian
 
rajatsingh78's Avatar
 
Join Date: Mar 2007
Location: Agra/Ghaziabad
Posts: 291
Thanked: 27 Times
Default

I bought my car in April 2007 and remember that the interest rate was somewhere between 12-13.5%, however recently the bank send me a statement of my loan amount in which the interest rate is at 14.73%, how can I check that what I was promised is the same since I have no documents where in the bank at the time of disbursement of the loan mentioned the rate of interest
rajatsingh78 is offline   Reply With Quote
Old 18th March 2013, 20:13   #54
BHPian
 
Join Date: Jul 2012
Location: Mumbai
Posts: 238
Thanked: 298 Times
Default is it normal to sign blank 'vehicle transfer forms' when taking a car loan?

Dear all

I an looking to get a new car loan. In addition to the hypothecation papers the bank also wants me to sign blank vehicle transfer forms which entitle them to transfer the vehicle to anybody. They claim that they will only use in case of default, but only verbally and via email. The fact is that they willhave a blank transfer form as well as a duplicate RC issuance form signed by me. They claim' all banks do this and no one ever reads these papers so why are you bothering?'

My question is- is this standard practice?
torquing_points is offline   Reply With Quote
Old 20th March 2013, 12:41   #55
BHPian
 
Join Date: Jul 2012
Location: Mumbai
Posts: 238
Thanked: 298 Times
Default Re: What gives loan companies the right to make customers sign blank forms?

Quote:
Originally Posted by mmmjgm View Post
My question remains. Is this practise legit ? Secondly if it is legit why are the Public sector banks like SBI, BoB, Canara Bank, IOB, Corporation Bank etc not doing it.
Alas, I have found out that even Canara Bank requires this. I guess there is no option but to sign these papers, or not take delivery. Sigh.
torquing_points is offline   Reply With Quote
Old 20th March 2013, 14:56   #56
BHPian
 
rohan_iitr's Avatar
 
Join Date: Feb 2009
Location: Bangalore
Posts: 992
Thanked: 401 Times
Default Re: What gives loan companies the right to make customers sign blank forms?

Quote:
Originally Posted by torquing_points View Post
Alas, I have found out that even Canara Bank requires this. I guess there is no option but to sign these papers, or not take delivery. Sigh.
There is one more option. Sign everything they ask for, get the loan approved, take the car delivery - and then threaten the branch manager that you would complain to the banking ombudsman regarding these unfair practices.

I did the same when a govt bank asked me to submit blank cheques for security purpose. When i threatened the branch manager, he agreed to make an exception and returned my blank cheques.

Rohan
rohan_iitr 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
The Cheap Loan or the Smart Loan - SBI Advantage Car Loan keyur Indian Car Loans & Insurance 208 5th July 2017 15:56
Finance companies cannot forcibly take possession of loan-default vehicles GTO The Indian Car Scene 61 30th November 2011 19:49
Loan query - is this loan deal OK (From HDFC) BenjiRoss Indian Car Loans & Insurance 100 2nd September 2010 16:51
Car companies raining discounts to lure customers undead The Indian Car Scene 2 9th August 2008 13:04


All times are GMT +5.5. The time now is 21:11.

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