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Old 10th July 2010, 13:21   #46
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Hi All,

Need one help.

Today went to HDFC bank branch, and got the quotation for Car loan, below are the details :

Loan Amount : 200,000/-
Tenure : 5 years @9.75% (fixed for 5 years)
Processing Fee : 2150/-
Stamp Duty : 0.2% on loan amount = 400/-
Hypothecation charges (not sure what is this) : 100/-
EMI : 4170/- (as per carwale emi calculator this is coming approx. 9.5%)

Foreclosure charges (on principal outstanding) :

6mnths - 1year > 6%
1year - 2year > 5%
after 2year > 3%

Now, what I don`t like is, the fact that HDFC will disburse an amount of :

200,000-{4170(1month emI) + 2150(processing fee) + 400 (stamp duty) + 100(hypothecation chatrges)}, .i.e.,

200000-6820 = 193180/- only.

Where as they are charging interest on 200000/-. Also, they are deducting the processing fees, stamp duty from the loan amount.

Can anybody confirm, if this is same in other banks as well?
Is SBI following the same? I am planning to check with SBI too.
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Old 12th July 2010, 12:18   #47
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Originally Posted by AvonA7 View Post
Can anybody confirm, if this is same in other banks as well?
Is SBI following the same? I am planning to check with SBI too.
I've seen it work both ways. You either pay the amount to the bank or they reduce the amount from the agreed loan amount. Both ways it more or less ends up the same for you. You can also ask them to add that to the repayment, but I wouldn't suggest that for such small amounts.

A better option would be to bargain and see if they will reuce or eliminate the processing fees and the other add ons. This has been known to happen especially when competition is high.

One more word of caution, when approaching SBI please insist on a fixed rate loan as they have a tendancy to sell floating rates to you.
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Old 12th July 2010, 13:11   #48
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Quote:
Originally Posted by AvonA7 View Post
Can anybody confirm, if this is same in other banks as well?
Is SBI following the same? I am planning to check with SBI too.
That is absolutely normal. Its called Pre or advance EMI option. There is another called EMI in arrears.

So when they disburse the loan they deduct the first EMI or you pay to them from your pocket. Both are same.

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Originally Posted by SafeDrive View Post
One more word of caution, when approaching SBI please insist on a fixed rate loan as they have a tendancy to sell floating rates to you.
Ask me, i am the victim of this cheating from SBI. I foreclosed my existing car loan from SBI on Saturday and was shocked to know that my loan percentage was floating which increased my foreclosure amount by quite a large amount.

What if they dont charge preclosure charges, they make it up by this silent cheating called "floating interest". As it was 4 years ago, i dont even recall if there was a mention of floating interest when i signed up for their loan

This has made be doubly wary before i sign the dotted line with HDFC bank for my new car
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Old 12th July 2010, 22:16   #49
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I have also availed loan from HDFC only and they are offering same interest rate to me as well. However, you can get your processing fee further down by negotiating more. They usually give 50% waiver (i got one !). The pre-closure charges are high. All private banks apply this but I think i got -1% of what you are getting. Check again with your banker.

Loan after first installment is normal, and you wont be charged interest on 200,000 but what is outstanding after deducting first EMI. Stamp duty is ok, hypothetication charges include partly bank's service component and partly chai-pani to RTO to sign few hundred RCs every week for them.

Quote:
Originally Posted by AvonA7 View Post
Hi All,

Need one help.

Today went to HDFC bank branch, and got the quotation for Car loan, below are the details :

Loan Amount : 200,000/-
Tenure : 5 years @9.75% (fixed for 5 years)
Processing Fee : 2150/-
Stamp Duty : 0.2% on loan amount = 400/-
Hypothecation charges (not sure what is this) : 100/-
EMI : 4170/- (as per carwale emi calculator this is coming approx. 9.5%)

Foreclosure charges (on principal outstanding) :

6mnths - 1year > 6%
1year - 2year > 5%
after 2year > 3%

Now, what I don`t like is, the fact that HDFC will disburse an amount of :

200,000-{4170(1month emI) + 2150(processing fee) + 400 (stamp duty) + 100(hypothecation chatrges)}, .i.e.,

200000-6820 = 193180/- only.

Where as they are charging interest on 200000/-. Also, they are deducting the processing fees, stamp duty from the loan amount.

Can anybody confirm, if this is same in other banks as well?
Is SBI following the same? I am planning to check with SBI too.
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Old 13th July 2010, 00:39   #50
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i recently procured a car loan from HDFC at 8.75%. The fact that i bank with them and have previously cleared car loans from them helped matters. Also i have heard of people negotiating and getting 8.5% from them
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Old 13th July 2010, 16:49   #51
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Quote:
Originally Posted by ishaanranderia View Post
i recently procured a car loan from HDFC at 8.75%. The fact that i bank with them and have previously cleared car loans from them helped matters. Also i have heard of people negotiating and getting 8.5% from them
Wow. That sounds pretty good. I hope you mean " Fixed" as i have been offered 8.75% and my loan is approved and awaiting my approval for disbursement to dealer.

I plan to disburse the amount on July 21st as my first EMI will start from Sep'10
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Old 14th July 2010, 16:52   #52
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I just got a call again from HDFC and they're refusing to budge from 2085/lac (5 years) and 100% processing fees.

I'm being told that if I can confirm the loan they'll see what they can do on a "best efforts" basis. Whoa! I thought the world works the other way around!

No way I'm going to sign up for the loan with them if this continues, not after reading the last few posts on this thread .

Regards,
spadix
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Old 14th July 2010, 18:16   #53
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Originally Posted by spadix View Post
I just got a call again from HDFC and they're refusing to budge from 2085/lac (5 years) and 100% processing fees.

I'm being told that if I can confirm the loan they'll see what they can do on a "best efforts" basis. Whoa! I thought the world works the other way around!

No way I'm going to sign up for the loan with them if this continues, not after reading the last few posts on this thread .

Regards,
spadix
Whoa ! that doesnt sound like the HDFC that i am dealing with. Why dont you hunt for a better deal with other financiers?
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Old 14th July 2010, 18:59   #54
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Quote:
Originally Posted by mobike008 View Post
Whoa ! that doesnt sound like the HDFC that i am dealing with. Why dont you hunt for a better deal with other financiers?
On the job, Sir! And imagine, this is to a a special classic privileged or whatchamcallit customer who's been so loyal for 7 years :(.

I'm just thinking - maybe I should have my employer change the salary account to SBI instead .

Regards,
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Old 14th July 2010, 22:30   #55
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My experience with HDFC car loan department...
I got my Loan disbursed from hdfc with 9.75% interest for 5 years sometime june last week. Processing fee 50% waived off as I am so called "Preferred customer" ( I dont think HDFC knows the meaning of this) !!. My experience with HDFC was worse..

The hdfc guy who I was interacting with took all documents signed and I told him to disburse the loan as soon as i get a call from the delaership about the arrival of the car. He siad its just 1 day job as everything is cleared. (Pre approved loan)
The day arrived when my car left the factory I gave him a call to disburse the amount. He said yes and for un known reasons kept on postponing.. He stopped picking up my call after that and postponed day after day.. My car arrived at the dealership and I did an inspection at the yard too.. Cleared all my part of the payment but this guy didnt send my forms to the dealer whotsoever.. with out that the dealer was not ready to register the car and my car was left at the yard for almost 5 days because of the sadist i was dealing with....

I being a preferred customer spoke to my relationship manager and he acted as if he was helping me all the time.. Took all my abuses but was not able to convince the guy to send my documents... It went on for a while and one day i called my relationship manager and threatened to close all my relationship with the bank and cancel the loan, then they sent my documents to the deler!!

Now its July 14 and after 1 month of the loan sanction i still havent received one line mail/text SMS or any information from hdfc about the loan amount that was disbursed or any details about the loan. I just blindly believed the dealer about the money disbursed as in forms they have received and paid rest of the amount..

I advice every one to keep Plan B before delaing with these creatures..Also the car loan representative will come with all blank documents (with no mention of interest rate, processing fee, charges..etc ) dont think of signing the documents unless it is filled no matter how much he tries to convince you...
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Old 15th July 2010, 11:29   #56
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@Kiyon, that's indeed an harrowing experience. Will make a mental note of it and call them well in advance to make sure the disbursement happens as per original plan.

Can you share the car bought, loan amount and final interest rate ( EMI/Lakh) that you got?
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Old 15th July 2010, 11:41   #57
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On the other hand with the same HDFC I got loan disbursed to the dealer in flat 2 days. Only consideration they had was I have a Saving account with HDFC with decent balance.
Processing fee 50% off.
2070 EMI/lac
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Old 15th July 2010, 13:59   #58
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Thanks safedrive, mobike008, dieseling.
I checked with SBI too, in terms of EMI both are more or less the same on 5 yrs tenure (SBI - 8 - 10 - 10 - Floating for 4th & 5th) and HDFC`s foreclosure charges are high. Again here, SBI - I was told that I cannot foreclose the loan before 2 years (or I need to continue for min. 1/2 the tenure if I do part payment), and for HDFC I can foreclose the loan after 6 months.

Remingtonsteele : You got a nice deal. I keep on getting calls informing me that I am a preferred customer and have preapproved loan, but couldn`t got the confirmation of 2070/lac and 50% waive off on processing fee (got 2085/- per lac with an assurance once I apply they can try something). Which branch you went through, can you share the information if its not going to affect your loan offer.
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Old 15th July 2010, 14:06   #59
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Quote:
Can you share the car bought, loan amount and final interest rate (EMI/Lakh) that you got?
Car : Hyundai i20 Asta 1.2 (Sparkle Blue) (Trident Hyundai)
Loan Amount : 400,000/-
Tenure : 5 years @9.75% (fixed for 5 years)
Processing Fee : 50% waived
EMI : Rs 8384 (Approx 2096 per lac) **

** Funny part is all details are assumed based on the security cheques i have paid and on the dealers word about the amount they received from the bank. HDFC has not so far sent any document/email or even a message stating that they have given me loan even after one month !!! Hope they forget about it !! :-)

Quote:
On the other hand with the same HDFC I got loan disbursed to the dealer in flat 2 days. Only consideration they had was I have a Saving account with HDFC with decent balance.
Even I didn't have an issue in terms of getting the loan sanctioned, it was done in flat 2days. The insane guy who handled my documents simply refused to send them to the dealer.. (Probably he had met his target for the cycle and wanted to push it to the next cycle). But no one had proper authority to tell him to send the documents and I suffered..
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Old 15th July 2010, 14:30   #60
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Originally Posted by AvonA7 View Post
Remingtonsteele : You got a nice deal. I keep on getting calls informing me that I am a preferred customer and have preapproved loan, but couldn`t got the confirmation of 2070/lac and 50% waive off on processing fee (got 2085/- per lac with an assurance once I apply they can try something). Which branch you went through, can you share the information if its not going to affect your loan offer.
My loan is already disbursed and its smooth rolling so no problem. I got it disbursed during June.
When I said the consideration of Saving Acc that meant they already had all my records so least of the paper work involved such as just the PAN Card and electricity bill etc.

I will share some tips here:
1) Start negotiating with HDFC say around 22nd of the month with the intention of closing the deal by/just before month end. They have targets to achieve so they gradually become flexible upto certain extent on rates as the time gets close to month end. The same applies for the deal for vehicle booking also. keep everyone on tenterhooks "or else you will go for other competitive vehicle with better deal". forge the other vehicle deal in reasonable and believable limits.

2) Generally dealers have tieup with the banks. Check the dealer offer for the same bank and your target should be just below the dealer price in terms of EMI/lac. Generally the dealer price is good as they deal in volumes and they have targets to achieve. But remember the dealer won't quote you the best price unless you negotiate hard on the price of loan offer.

3) Its rainy season now and its supposed to be slack period for vehicle sales traditionally (but current vehicle sales numbers don't say so though); so in general anticipation they try to make the vehicle and loan deals sweeter. For HDFC the deals change every month (or every 3 weeks i guess).

Anyway, Which car you intending to buy. I will PM you his number, he is a HDFC guy (some sort of group leader/team leader or something but he is someone senior in car loans); please don't quote me as he knows me and will thrash me on exposing the offer.
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