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Old 27th June 2008, 17:50   #1
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Default Anyone dealt with these companies?

I registered for a Car loan application from apnaloan.com.
Surprisingly, they have given contacts of
MAX MARKETING
CHOLA DBS
CREDIT SOLUTION 4U
MAXXUM GROUP
One of these, the MAXXUM group person called me and said they can provide finance at 12%.
I told them ICICI is offering 11.16, and then without any choon chaan he says 11%

I didn't have to bargain too! Since I believe there is no free lunch, there has to be a catch with these companies.
So any idea about these, esp MAXXUM group?
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Old 27th June 2008, 17:52   #2
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Quote:
Originally Posted by tsk1979 View Post
...I told them ICICI is offering 11.16, and then without any choon chaan he says 11%...
TSK,

Please be very careful! With such tactics, you never know what you are getting into!

Take everything with a bucket of salt!

EDIT: Have never heard of any of these groups! Are they new entrants or offshots of existing corporates?
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Old 27th June 2008, 18:06   #3
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what is lost at the swings , is gained at the roundabout. Lower interest will be offset by higher processing costs
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Old 27th June 2008, 18:24   #4
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@tsk, a 0.16% difference in intrest rate will translate to a very small amount - a few rupees per month ? The peace-of-mind of going with a regular financial institution will far out-weigh any problems that can come up with such players

Last edited by condor : 27th June 2008 at 18:25.
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Old 27th June 2008, 18:45   #5
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Not trying to contradict what others have said, but when you are trying to get a loan from someone, it is your reputation that matters more than the lender's. So if the deal is working out financially (and there are no catches), then you may want to go for it.

That said, at the moment the price advantage is too small. If they offer, say 10.5%, you may want to make enquiries.

Practically, though, the most difficult part would be figuring out the catches in the first place.
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Old 27th June 2008, 18:46   #6
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Go with a trusted bank like HDFC, ICICI for peace of mind, even if that means paying a slightly more premium. Whenever dealing with a loan of high value, I prefer a private bank since they are professional, any information about a cheque, emi, etc. is just a click or phone call away. You wouldn't want to run around a bank like the MTNL episode.
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Old 27th June 2008, 18:52   #7
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Chola DBS is a player in Mutual Funds, IIRC.
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Old 27th June 2008, 19:23   #8
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Even I am aware of Chola but never dealt with them, so no comments.

Quote:
Originally Posted by Glass View Post
Chola DBS is a player in Mutual Funds, IIRC.
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Old 27th June 2008, 20:47   #9
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Even I am gravitating towards kotak, because they are offering 11.75%.
ICICI is offering 11.44% so kotak means couple of hundreds more.
But due to multiple relationships with Kotak, I don't mind paying more for a peace of mind.
However I was not aware that such companies existed!
Really crazy stuff.
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Old 27th June 2008, 20:57   #10
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Tanveer, a banking relationship is like any relationship we have in life. Like for a family member, you don't mind paying a few bucks extra, it should be the same with any bank also provided that you are comfortable with it. If you have multiple relations with a bank (home loan, savings account, salary account, fixed deposits, etc.), then they actually take very good care of you and in the end, it turns out to be a cheaper and better option and you are guranteed service and help on priority. That's what I have learnt. My advice to you would be to stick with Kotak if you are already doing business with them. You can ask them to match the lowest quote you go from ICICI and in most probablity, they should do it. Even if they don't, I would advice you to go with them. Just my 2 cents.

On another note, when do you plan to take delivery?
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Old 27th June 2008, 21:06   #11
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tsk sir,
There are many non-banking financial institutions (like this Maxxum). My friend has booked a Santro from Suhrit Hyundai in N-Delhi. The dealer put him in touch with one such company - 'Magnum Financial Services'.

(Magnum, Maxxum...)

Anyway, the way they lured my friend into a deal was like this: "Sir, loan rates are going up. SBI and United Bank have already hiked rates. Take a loan from us, we'll give a pre-hike interest rate."

I had to point out to him afterward that all bank rates for car loans are floating rates, not fixed. And that if interest rates improve in the future, he stands to lose as a customer planning to take out a 5-year loan.

Totally opaque, and unethical. And the question that begs asking next - what of the reducing - is it monthly, or is yearly? Does it reduce at all?

And most importanly, why did they lie to a customer?
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Old 27th June 2008, 21:48   #12
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Usually finance company personale are allowed to reduce the interest rate by 1% with any approval from the company. Also the rate are mentioned accordingly, they know at least 50% of the customers will bargain, so usually the rate which are mentioned are on higher side... people who do not bargain are the once the company earns on...Chola is a great company I have been doing business with the for past 8 years for my commercial vehicles and I have never faced any problems...
Plus did he tell you the scheme, if you have to pay a installment in advance than you end up paying the same interest as you have payed a whole installment in advance and that is taken up as interest, and no basic amount is reduced... so do the calculation...
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Old 28th June 2008, 02:00   #13
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Most banks except for SBI have "advance EMI".
However when that happens, the EMI drops by 20-30rs from my calculated rate at that %
Also number of EMI's are same.
So its like my loan will start out earlier, even before the money is disbursed.

But I am worried about the floating nature, this means, that tomorrow they can make the interest rate 15% and my budget will go out of the window.
How often do banks normally revise floating rates.
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Old 28th June 2008, 03:50   #14
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Default Read the fine print

Just ask all the papers to be handed over to you. read them and double check, dont sign on any paper that you have not read. Its not easy, but make sure you do that.

Secondly, ask atleast 2 of them for full details like above. Their role only upto appliying for a loan. Rest is with you and bank.

I dont think there is any Bank that can be told as very good in this department. So need to be very careful. Best of luck

\\hkp
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Old 28th June 2008, 10:56   #15
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The rates are revised depending on RBI rates to the bank, with this times inflation numbers the banks have already increased there rates, and it's possible that there may be another increase coming soon.Isn't there a fix rate scheme? [ I have a fix rate scheme] it may be on the higher side at present but in the long run with the economic storm this year it will be a safe bet.... this is my view though.
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