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Old 19th April 2010, 14:56   #16
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Default ICICI Loan Query.

All,

I have applied for ICICI loan of around 4 lakhs/5 years for my first car. They have offered me a rate of 9% dimnishing. The EMI works out to
2061 per lakh. Is this a good EMI/Rate? The bank folks told me that this is the best i could get and i am getting this only because my company has a good relationship with ICICI. ICICI is charging me 2500Rs as processing fees.

Please give inputs on this.

Thanks,
Vishnu
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Old 19th April 2010, 21:35   #17
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Originally Posted by vishnurp99 View Post
All,

I have applied for ICICI loan of around 4 lakhs/5 years for my first car. They have offered me a rate of 9% dimnishing. The EMI works out to
2061 per lakh. Is this a good EMI/Rate? The bank folks told me that this is the best i could get and i am getting this only because my company has a good relationship with ICICI. ICICI is charging me 2500Rs as processing fees.

Please give inputs on this.

Thanks,
Vishnu
Never go directly with a bank quote, always check at 2-3 banks and also at dealer. I wont trust ICICI to give you the best quote, its almost always a public sector bank.

Ask the dealer and 1 more bank just to see if their deal is the best, grab it if it is, otherwise take the better deal.
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Old 19th April 2010, 21:40   #18
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you could try SBI. They offer 8% for the first 2 years and market rates for the rest of the tenure.
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Old 20th April 2010, 16:39   #19
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My dad was working with sbi. So checking with SBI is what i did first. Nobody was able to give me below a monthly EMI of 2061/lakh for 5 years.
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Old 2nd June 2010, 17:18   #20
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looks like you are paying 13% and not 7%.Please recheck your loan.
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Old 3rd June 2010, 12:31   #21
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INR 2061/lac for 5 years is probably a good deal given the times, if you ask me. For comparison sake, these are the quotes I got from other banks (directly from the banks) as their first offer (i.e. no further negotiations) in late April -

Andhra Bank: Around 2200/lac (11%)
ICICI/Axis/HDFC: Around 2084-2095/lac (9.5%)

However, EMI/lac is just one part of the loan equation. Do pay attention to the rest of the terms and conditions (monetary and otherwise) as well.

Regards,
spadix
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Old 7th June 2010, 11:19   #22
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HDFC currently has a scheme for customers with whom they have a long-standing relationship (think salaried account that's a few years old).

For lack of time over the weekend, I haven't worked out the numbers to see if it makes sense, but it goes something like this -

Year 1 - 7.99% (2014/lac)
Year 2-5 - 9% (2050/lac)
The last 2 EMIs will be at 4100/lac (apparently this is irrespective of whether you opt for a 3/4/5-year tenure). So the idea is to preclose the loan when there are a few months remaining. Preclosure charges (and these are standard, irrespective of the scheme) are 6% of principal o/s within 1 year of the 1st EMI, 5% of principal outstanding between 13 and 24 months of the 1st EMI and 3% of principal outstanding at any time beyond 2 years of the 1st EMI.

Processing fees (3650) and stamp duty (0.5% of loan amount + 100 stamp paper) apply.

Their regular rates are 3179/lac (3 years), 2494/lac (4 years) and 2085/lac (5 years).

Hopefully this is of some use to those considering taking a loan from HDFC.

Regards,
spadix
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Old 7th June 2010, 15:15   #23
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Hello Spadix... When did HDFC come out with SBI styled plan.. I mean different rates for different years.. I am actually in the process of availing the loan.. I have applied from HDFC and it is sanctioned, (Haven't signed the agreement though) the sales executive/Relationship Manager never mentioned about this plan. I am a preferred customer of HDFC with salaried account from 5 years! Currently they have offered me 9.75% fixed for 5 years.. Can you reconfirm this or provide me more details....
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Old 14th June 2010, 15:06   #24
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Quote:
Originally Posted by Kiyon View Post
I am a preferred customer of HDFC with salaried account from 5 years! Currently they have offered me 9.75% fixed for 5 years.. Can you reconfirm this or provide me more details....
Sorry for the late reply, Kiyon.

I'm surprised they didn't mention this plan to you because the people I spoke to here said I was presented that plan only because I am a Classic Privileged customer (or something similar).

I ran the numbers in a spreadsheet and this ballooning plan is actually worse because of those two really huge payments at the end. I didn't look at the foreclosure scenario of course.

For your reference, I spoke to HDFC bank in Paradise, Secunderabad. My savings a/c is with a different branch, though.

9.75% for 5 looks OK (I was quoted 9.5% for 5, with a potential - not guaranteed - drop to 9.25% if I opt for vehicle insurance through HDFC). Negotiate a bit by saying you'll invest in HDFC MFs and that you'll take other HDFC products (like vehicle insurance or something else) and you might get them down to 9.5% if not 9.25%.

Regards,
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Old 15th June 2010, 22:17   #25
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Thanks a lot for the reply @spadix... Yes HDFC people are insisting me to buy their product (HDFC ergo car insurance OR Suraksha) for them to reduce it to 9.5.. I am still on negotiating terms with them... I haven't heard much about HDFC ergo auto insurance so would sacrifice that for 0.25%..I don't want any hassles while making claims rather... I am looking at Bajaj Allianz ya Tata AIG for insurance so..
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Old 17th June 2010, 17:13   #26
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@Kiyon, what was the initial quote of HDFC bank and how much is the final rate of interest ( 9.75%???)

Wanted to check how much they quote initially and later on provide discount.

Btw, What is your loan amount and what is EMI/Lakh for 9.75% fixed rate for years?

If i am not wrong, If you pay one advance cheque then its as good as 0.5% increase to agreed percentage rate
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Old 20th June 2010, 20:33   #27
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Quote:
Originally Posted by mobike008 View Post
@Kiyon, what was the initial quote of HDFC bank and how much is the final rate of interest ( 9.75%???)

Wanted to check how much they quote initially and later on provide discount.

Btw, What is your loan amount and what is EMI/Lakh for 9.75% fixed rate for years?

If i am not wrong, If you pay one advance cheque then its as good as 0.5% increase to agreed percentage rate
Hi Friends,

Recently I booked my car and am currently serving the waiting period of 4 months (2 more to go). Salary account holder in HDFC Bank. While considering loan checked with HDFC and me too was told @9.75% fixed for loan tenure of 3yrs (I checked for loan of 3 L INR for 3yrs)+ processing fees same as mentioned in one of the above post. Am informed that since I am a salary account holder this is the revised rate, else it is 10.75%.

I did a rough calculation (please refer attached file loancalculations), and I found that even if I repay the loan amount after 1year I won`t gain much. Thought of sharing it in this forum.

The below calculations is for :
Loan amt - 100,000
Interest Rate - 9.75%
Tenure - 3yrs
Foreclosure - after 1 year
EMI Mode - Advance
Assumptions - I need to pay 1 EMI in advance and the remaining in 35 installments. (please correct me if I am wrong here).

All in all I am planning to go for SBI (8% 1st yr and 10% for 2nd and 3rd year, with foreclosure charges of 2% on outstanding principal, need to confirm, this is what I was told over ph. when I contacted an agent for SBI). Also heard SBI is more transparent compared to some of private banks.

Moderators: I am not able to see my previous post, I tried to paste the excel sheet in the reply section, may be thats why. Posting it again as an attachment. If its a duplicate post, please remove either one.
Attached Files
File Type: xlsx LoanCalculations.xlsx (12.3 KB, 397 views)

Last edited by Technocrat : 20th June 2010 at 23:21. Reason: Removed extra Tags, Please avoid copy pasting text from external editors like MS word etc, Thanks
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Old 21st June 2010, 16:25   #28
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Simple advice to all.

Dont rely on % quoted by banks as they mislead you with wrong percentage figures. Always go by amount/lakh.

A colleague has bought a scorpio and he took the incremental option by SBI and you wont beileve the raw deal he got. He is paying Rs.19,800 EMI for a loan of 9 lakhs for 5 Years which works out to Rs.2200/Lakh ( 12.2%)

He was told his interest % works out to 8.XX and when i told him my quote ( outlined below), his jaw dropped and is fuming at more than 75K loss over 5-year tenure.

After a lot of negotiation, i got a quote for Rs.2060/Lakh ( 5 Years)-9% and this is the best deal in market right now from HDFC bank and 50% waiver on processing fee.

Still negotiating for a lower amount per lakh and asking for total waive off the processing fee and also negotiating the foreclosure percentage
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Old 21st June 2010, 18:05   #29
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Quote:
Originally Posted by mobike008 View Post
After a lot of negotiation, i got a quote for Rs.2060/Lakh ( 5 Years)-9% and this is the best deal in market right now from HDFC bank and 50% waiver on processing fee.

Still negotiating for a lower amount per lakh and asking for total waive off the processing fee and also negotiating the foreclosure percentage
Which HDFC branch is this? The best I've got right now is 2085/lac and full charges everywhere else, despite being a salaried a/c holder for 7 years. Of course, that's their first offer and I haven't started negotiating at all yet.

Let's wish each other luck!

Regards,
spadix
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Old 21st June 2010, 18:15   #30
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Quote:
Originally Posted by Kiyon View Post
Hello Spadix... When did HDFC come out with SBI styled plan.. I mean different rates for different years.. I am actually in the process of availing the loan.. I have applied from HDFC and it is sanctioned, (Haven't signed the agreement though) the sales executive/Relationship Manager never mentioned about this plan. I am a preferred customer of HDFC with salaried account from 5 years! Currently they have offered me 9.75% fixed for 5 years.. Can you reconfirm this or provide me more details....
Its a wrong practice to talk about Fixed rate of interst.

You are being taken for a ride, the reducing balance rate for you is @ 19% in this case.

I am attaching a simple EMI and Rate calculator. Hope its of some use
Attached Files
File Type: xls RATE OF INTERES.xls (13.5 KB, 317 views)
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