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Old 13th January 2009, 19:23   #1
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Default New Rate Of Interest For Car Loans

TO-DAY I MADE AGREEMENT WITH BANK OF INDIA FOR MY i10 CAR
LOAN AMOUNT - 2.40 LAKHS
INTEREST RATE -10.25%
TERM - 36 MONTHS
EMI - 7773/-
NO ADVANCE EMI

PAPERS GIVEN LAST TWO YEARS IT SAREL COPY
ID PROOF & ADDRESS PROOF PAPER
WITH IN 48 HOURS THEY RELEASE THE DRAFT

IT IS CHEAP ? ANY ONE COMMENDS ON THIS?

BALUGITA
COIMBATORE

cheers:
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Old 13th January 2009, 22:33   #2
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Seems pretty good because the general rate seems to 12-13% for cars these days.
Are there any other charges.
Is it fixed or floating?
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Old 13th January 2009, 22:49   #3
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Quote:
Originally Posted by BenjiRoss View Post
Seems pretty good because the general rate seems to 12-13% for cars these days.
Are there any other charges.
Is it fixed or floating?
it is floated
no hidden charges & any other charges

balugita
coimbatore
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Old 31st January 2009, 00:40   #4
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Thats a good rate. I'm also fishing, so far. Have asked rates from other banks, guess I will have more updates tomorrow.

HDFC = 12.75% Floating
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Old 31st January 2009, 09:31   #5
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Why dont you go for a central bank or Bank of Baroda

I am taking a "fixed" interest loan and interest rate is 10.5% only from Central bank

Atleast you will have the peace of mind that this interest rate will be constant throughtout the tenure.

-Hdi
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Old 31st January 2009, 10:51   #6
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"Fixed" rate always confuse me, doesn't it mean that you will pay interest for the whole amount rather than the diminished principle amount?

Isn't floating = diminishing loans?

If so fixed 10.5% is way too high, what is your EMI per lac?
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Old 31st January 2009, 11:42   #7
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Got a call from Reliance Finance.

Diminishing 100% finance Interest rate = 11.75

Guess 100% finance is on the ex showroom price? Does anyone know if it can be OTR 100% finance as well lol
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Old 31st January 2009, 12:00   #8
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Musicvj:

As per my understanding:

Fixed Rate: A fixed rate of interest based on the principal amount your are borrowing. This rate will stay fixed during the entire tenure period of the loan. Thus the EMI will stay fixed.

FLoating Rate: A rate of interest that changes with the vagaries of the economic conditions that surround us.

If you're a gambler, go in for the floating rate. If you are totally risk averse, go for the fixed rate.

The concept you are talking about above is totally different and has nothing to do with fixed or floating interest rates.
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Old 31st January 2009, 12:14   #9
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The advice that I would give to anyone asking me about the loan process is to

- check the processing fee
- check the monthly payment
- check the tenure

With these facts calculate how much you end up paying for the loan you are taking. (I guess this is only for fixed interest charges).

This was, one does not get confused with all this diminishing principle and all the other jargon's these agents thrown in. Infact, when I was looking out for a loan, on 2005, I found that I payout lesser when I go with ICICI than with one other bank even though ICICI mentions a higher interest rate!

Quote:
Originally Posted by Red Liner View Post
...
If you're a gambler, go in for the floating rate. If you are totally risk averse, go for the fixed rate...
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Old 31st January 2009, 17:21   #10
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Most private banks will have processing charges built into the Advance EMI i.e. although the processing agent might say its Advance EMI, it consist of 2 parts processing charges + principal amount. For eg. if you pay 1 advance EMI of 10k, 6K will be deducted as charges (credit facility origination charges) and 4k as principal from the your loan amount.

Credit facility origination charges can go as high as 65-70% of your EMI.

If in doubt, check from the bank directly and not the agents.

Last edited by dadu : 31st January 2009 at 17:35.
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Old 2nd May 2009, 23:34   #11
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Whats hdfc bank's rate of interest after all the recent rate cuts? Has Bank of Baroda's rate gone down from 10.5? I think thats the best one available as on date, right?
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Old 4th May 2009, 19:32   #12
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My Loan details with Central bank is as follows

Loan -10.5%(Floating rate
Prepossing fees - 2000
No Advanced EMI

Thanks
hdi.
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Old 4th May 2009, 19:53   #13
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when did you take this loan? 10.5 % doesnt seem to be the current rate of interest.
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Old 4th May 2009, 21:07   #14
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Quote:
Originally Posted by balugita View Post
TO-DAY I MADE AGREEMENT WITH BANK OF INDIA FOR MY i10 CAR
LOAN AMOUNT - 2.40 LAKHS
INTEREST RATE -10.25%
TERM - 36 MONTHS
EMI - 7773/-
NO ADVANCE EMI

PAPERS GIVEN LAST TWO YEARS IT SAREL COPY
ID PROOF & ADDRESS PROOF PAPER
WITH IN 48 HOURS THEY RELEASE THE DRAFT

IT IS CHEAP ? ANY ONE COMMENDS ON THIS?

BALUGITA
COIMBATORE

cheers:
I think it is a very decent rate. I took a loan from HDFC as a preferred customer 2 months ago and I am getting 11.25% for a 3 year tenure. You might consider taking an insurance policy for around Rs. 3000 which will protect you against inability to pay emi in case of any of several reasons. Right now floating rate is recommended as interest rates are not expected to go up for the next 2 years - will certainly go down a bit.

Cheers
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Old 5th May 2009, 09:59   #15
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Is this 3000 an annual premium? and how does this insurance on loan work?
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