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Old 6th July 2010, 00:50   #226
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Old 24th July 2010, 01:59   #227
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My questions:
1. Hows the deal being offered by HDFC (at emi/ lakh coming to be 2095) - good, bad or ugly? HDFC arent willing to budge beyond this.
Contact Axis bank and then show their rates to HDFC. You will see them drop immediately. In fact, even Kotak immediately agreed to drop down to Axis levels in my case.

However, from my recent experience, on a 3 lac principal you'll be hard-pressed to find an EMI/lac figure that's lower than what you got.

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2. Would like to try out SBI, but the mixed mag of experiences on tbhp confuses me. Also, I have an education loan from SBI still to be paid (not a defaulter there though), so would it effect my chances of loan getting stuck at SBI/ any other state bank. Dont think that will be an issue with HDFC.
I thought so too but I went with HDFC for a different reason - I'm a Classic customer and they have some special rates. If you want a fixed-rate loan from SBI you'll not be able to do better than 2100/lac I think (for instance Andhra Bank - another nationalized bank - made around 2200/lac as their first offer).

Your credit report from CIBIL is invariant irrespective of which bank you go with. Infact, SBI may be willing to offer you some concessions if you've been repaying your education loan EMI regularly for 3+ years or so. Contact your branch manager and just ask. There's no harm in doing that.

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Old 1st August 2010, 01:44   #228
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For anyone with a Citibank account and who's planning to go for a car loan but their account's home branch is in a different location than the place where your car loan is.. (like in my case ive been in hyd for a while now but my account was created elsewhere) it seems the Electronic Clearance System (ECS) Form that has to be signed by Citibank does not get authorized. Citibank stopped authorising ECS forms from any car loans etc unless your car loan and home branch is in the same location.

I was not aware of this since even recently some of my friends had got their car loans in hyd even though their citibank account's home branch was outside hyd. But when i applied now in SBI they were refusing to provide the loan unless i myself get the ECS form signed by Citibank which was not possible either cos of the reason mentioned above.

So i asked SBI if i can pay in PDCs. They told me theyve stopped taking PDC's cos the PDC system was replaced with the new Electronic Clearance system (ECS). All my hopes were on PDCs.. but now that they turned it down right away im not sure what other options im left with.

Does anyone know if any other banks other than SBI have problems with paying with Post dated cheques now. I know they all used to take it. But right now do they do it? Or has every bank switched to ECS only payments for their car loans? Any information would be greatly appreciated.
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Old 1st August 2010, 10:52   #229
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For anyone with a Citibank account and who's planning to go for a car loan but their account's home branch is in a different location than the place where your car loan is.. (like in my case ive been in hyd for a while now but my account was created elsewhere) it seems the Electronic Clearance System (ECS) Form that has to be signed by Citibank does not get authorized. Citibank stopped authorising ECS forms from any car loans etc unless your car loan and home branch is in the same location.

I was not aware of this since even recently some of my friends had got their car loans in hyd even though their citibank account's home branch was outside hyd.
Is this a concrete fact? Have you checked with Citi yourself? The reason I'm so surprised is because banks like HSBC & Citi are completely any-branch banking enabled. Regardless of where your home branch is situated, they have no issues in giving you signed ECS forms for any other city within the India network.

I also speak out of experience. My HSBC account was created in Ahmedabad. Right now my car loan is financed by ECS forms given out of Kolkata. Been running that way for 2 years.

Only one remedy I can think of. Go to your nearest Citi branch and get your correspondence address changed to your current city. Maybe the reason they don't give you ECS forms is because they can't find a correspondence address!

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So i asked SBI if i can pay in PDCs. They told me theyve stopped taking PDC's cos the PDC system was replaced with the new Electronic Clearance system (ECS). All my hopes were on PDCs.. but now that they turned it down right away im not sure what other options im left with.

Does anyone know if any other banks other than SBI have problems with paying with Post dated cheques now. I know they all used to take it. But right now do they do it? Or has every bank switched to ECS only payments for their car loans? Any information would be greatly appreciated.
Most PSU banks still take PDCs.
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Old 1st August 2010, 11:03   #230
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Is this a concrete fact? Have you checked with Citi yourself? The reason I'm so surprised is because banks like HSBC & Citi are completely any-branch banking enabled. Regardless of where your home branch is situated, they have no issues in giving you signed ECS forms for any other city within the India network.

Only one remedy I can think of. Go to your nearest Citi branch and get your correspondence address changed to your current city. Maybe the reason they don't give you ECS forms is because they can't find a correspondence address!


Most PSU banks still take PDCs.
@predatorwheelz - Heyy thanks a lot for the info. I did check with Citibank over the phone and thats what their customer care told me. I was quite surprised and not expecting this. So i had already made my downpayment too. I never saw this coming. I've already changed the address of my account to hyd long back itself. Its just that the home branch location itself is not here. Citibank says that cannot be changed and you'll have to start a new account here instead. Then i went and checked the FAQ section on their website and its written there also. The home base cannot be changed. Now im stuck and im not sure what my options are. May be i will try going to the branch itself and double check like you said.
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Old 1st August 2010, 19:59   #231
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The home base cannot be changed. Now im stuck and im not sure what my options are. May be i will try going to the branch itself and double check like you said.
The information you have is correct. I faced a similar problem with my Citibank account (which I don't use anyway other than to pay my Citibank credit card bill).

You can open a fresh Citibank account in your new location and maybe transfer funds from the old account to the new (just maintain some minimum balance in the old one to keep it functioning). This might solve your issue, but check with the branch here first.

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Old 2nd August 2010, 01:09   #232
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The information you have is correct. I faced a similar problem with my Citibank account (which I don't use anyway other than to pay my Citibank credit card bill).

You can open a fresh Citibank account in your new location and maybe transfer funds from the old account to the new (just maintain some minimum balance in the old one to keep it functioning). This might solve your issue, but check with the branch here first.

Regards,
spadix
Thanks spadix for confirming that. So i guess getting a new account in the loan location is my only option. But since they also want the loan to be paid from your salary account only i will have to check with my office if that can be worked out. But if none of these work out any idea if i'll be able to get back my downpayment in a worst case scenario? Im just wondering.
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Old 2nd August 2010, 18:18   #233
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But if none of these work out any idea if i'll be able to get back my downpayment in a worst case scenario? Im just wondering.
There should be some provision in the terms and conditions but be prepared for many emails and heated phone calls and visits to the branch.

The trouble with these banks is that the DSAs are given monthly sales targets and once they achieve those (by hook or by crook i.e. without verifying all aspects properly, such as in your case) they dust their hands off the case. Besides, attrition is a huge problem with the DSA role.

So be prepared for a long, hard, painful fight. Hopefully it'll not come to that.

I actually think the bank will somehow find a way to give you the loan. Which bank would like to lose all that interest money?

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Old 2nd August 2010, 20:35   #234
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There should be some provision in the terms and conditions but be prepared for many emails and heated phone calls and visits to the branch.

So be prepared for a long, hard, painful fight. Hopefully it'll not come to that.

I actually think the bank will somehow find a way to give you the loan. Which bank would like to lose all that interest money?

Regards,
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@spadix - Okay so i went and met the manager again at the RACPC, SBI and it seems it doesnt have to be so difficult. Told him, Citibank is not gonna authorize ECS, and transferring my salary account is not gonna be so easy or quick and you say you dont take PDCs. So i asked him this being my situation could you at least advice me on what my options are to take this forward cos im stuck and i dont know what to do. So he now tells me that if i have an account in SBI they can do it. Duh!! If only he had told me this before i wouldnt have to go through all this trouble. Anyways at least he told me that before it got to a worst case scenario. So hopefully tomorrow i'll apply for a new SBI account and that should help things move. *Fingers crossed*

You were right. Doesnt look like they want to lose all that interest money. I was just 2 sentences away from cancelling all this and opting for a different bank. But now im willing to give this a try.
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Old 17th August 2010, 16:22   #235
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hey guys, just need your help: Which of the following two options for car loan is better?

Bank: HDFC
Loan amount: 559,000
50% off on processing fees: 3770/2=1885
Stamp duty:0.3%=1677
Term: 5 years

Opt 1.
First year: 7.99%, 2014/Lac EMI:11257
Second to Fourth year: 9.0%, 2060/Lac EMI:11516

Opt 2.
9.00% Reducing 2060/Lac EMI:11583


I am a HDFC classic customer and also these days are only till 23rd as they bank fellow mentioned that interest rates are going to be increased due to some RBI norms.

Do let me know your views guys !
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Old 27th August 2010, 18:21   #236
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Query for existing SBI 8% loan scheme customers, what is the EMI/lakh in the scheme? Is the EMI amount lower for the first year and increases as the term increases or the EMI remains constant and the interest rate increases. I dont have any idea about this ballooning scheme so asking this noobish question ?

EDIT: Sorry I forgot to mention the term, it'll be either 5 or 7 yrs.

Last edited by setuniket : 27th August 2010 at 18:29.
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Old 31st August 2010, 10:52   #237
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Post deleted by the Team-BHP Support : Please do NOT post one-liners that add little or no informational value to the thread. We need your co-operation to maintain the overall quality of this forum.

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Old 31st August 2010, 17:49   #238
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Originally Posted by Butters View Post
hey guys, just need your help: Which of the following two options for car loan is better?

Bank: HDFC
Loan amount: 559,000
50% off on processing fees: 3770/2=1885
Stamp duty:0.3%=1677
Term: 5 years
Considering the above is same for the below 2 options :

Quote:
Originally Posted by Butters View Post
Opt 1.
First year: 7.99%, 2014/Lac EMI:11257
Second to Fourth year: 9.0%, 2060/Lac EMI:11516

Opt 2.
9.00% Reducing 2060/Lac EMI:11583
Sorry, I am not sure where is the confusion, forget about the reducing etc., you are repaying :

Opt1 - 687582/- ==> To go for
Opt2 - 694980/- (7.5K more than Opt1).

Also, check the break-up I am sure if you are going to foreclose the loan, Opt1 will save you some more money. Note that for any EMI, interest amount decreases with every EMI.

Last edited by AvonA7 : 31st August 2010 at 17:51.
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Old 31st August 2010, 20:28   #239
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Query for existing SBI 8% loan scheme customers, what is the EMI/lakh in the scheme? Is the EMI amount lower for the first year and increases as the term increases or the EMI remains constant and the interest rate increases. I dont have any idea about this ballooning scheme so asking this noobish question ?

EDIT: Sorry I forgot to mention the term, it'll be either 5 or 7 yrs.
For SBI, I checked a month or so ago (please check if the rates are still same), 1st-2nd-3rd yrs @8%-10%-10% respectively and 4th-5th floating, .i.e, based on market rate etc.

EMI with SBI will increase after the 1st year, but the amount increased would be small, for eg. ~75/- per lakh. 2nd-3rd year EMI would be same (slightly more than 1st year) and similarly 4th-5th year.

In the mean time if you make any bulk payment towards repayment of your loan, the interest/tenure would be adjusted accordingly. Also, in EMI interest deduction would reduce as loan tenure progresses.

Hope this helps.
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Old 1st September 2010, 10:46   #240
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thanks Avon, that was helpful !! However i was also thinking that since the car i booked has 3-4 months waiting period why shouldn't i just go for SBI 8-10-10-floating scheme ? As it is wont be any hurry for the loan amount to be dispersed
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