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Old 4th June 2015, 17:10   #346
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Default Re: Which car loan company to go for?

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I wish to buy a car this sep or sooner. will take Loan between 2.5 lakhs to 3 lakhs for 2-3 years and rest down payment for wagon r/celerio cng. However by feb-march 16 i expect to get 1 lakh or two spare when a home gets sold. can i prepay loan and save all the interest that is going to bank ? or do banks first take interest and then the principal gets deducted ? basically i feel paying anything more than 20k interest is not good yet i want a car soon.
Any prepayment you do goes to the outstanding principle. Based on the pre payment, the emi is reduced or the tenure comes down.

You need to confirm if the loan company allows pre payment. Not all loan companies allow for vehicle loan. SBI allows part payment / closure etc without any penalties.
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Old 4th June 2015, 17:53   #347
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Default Re: Which car loan company to go for?

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Originally Posted by Rajeevraj View Post
Any prepayment you do goes to the outstanding principle. Based on the pre payment, the emi is reduced or the tenure comes down.

You need to confirm if the loan company allows pre payment. Not all loan companies allow for vehicle loan. SBI allows part payment / closure etc without any penalties.
yeah i will go for SBI only as it allows prepayment as i read here. so by paying loan in 6 months i will be able to avoid paying excess interest right ? is my plan good ?
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Old 4th June 2015, 18:04   #348
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Default Re: Which car loan company to go for?

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yeah i will go for SBI only as it allows prepayment as i read here. so by paying loan in 6 months i will be able to avoid paying excess interest right ? is my plan good ?
Yes. You will pay interest only for the 6 months. A car is a depreciating asset and starts depreciating the moment it leaves the showroom. So paying off the loan on a car as soon as possible is always a good thing to do. You can also look at taking the loan for 5 years so that the emi and interest out go is further reduced. So at the end of 6 months your interest outgo will be lower as compared to taking the loan for 2 or 3 years.
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Old 11th June 2015, 18:43   #349
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Originally Posted by Rajeevraj View Post
Yes. You will pay interest only for the 6 months. A car is a depreciating asset and starts depreciating the moment it leaves the showroom. So paying off the loan on a car as soon as possible is always a good thing to do. You can also look at taking the loan for 5 years so that the emi and interest out go is further reduced. So at the end of 6 months your interest outgo will be lower as compared to taking the loan for 2 or 3 years.
From whatever little knowledge I have, I believe that all banks have a loan lock in period where they charge a substantial pre-payment fee if paid before the stipulated time. Hdfc charges it if the loan is being pre-paid anytime within 12 months duration.
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Old 11th June 2015, 19:13   #350
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Default Re: Which car loan company to go for?

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From whatever little knowledge I have, I believe that all banks have a loan lock in period where they charge a substantial pre-payment fee if paid before the stipulated time. Hdfc charges it if the loan is being pre-paid anytime within 12 months duration.
Nope, SBI does not have any prepayment charge. You can prepay any amount at any time and close it also as you wish. That is a big advantage of an SBI car loan. Other banks may still have charges. But if I am not mistaken RBI had mandated that no bank can levy any kind of prepayment charges. But that may be only for home loans. Not very sure.
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Old 11th June 2015, 22:07   #351
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Default Re: Which car loan company to go for?

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Originally Posted by Rajeevraj View Post
Nope, SBI does not have any prepayment charge. You can prepay any amount at any time and close it also as you wish. That is a big advantage of an SBI car loan. Other banks may still have charges. But if I am not mistaken RBI had mandated that no bank can levy any kind of prepayment charges. But that may be only for home loans. Not very sure.
Does SBI provide overdraft facility (similar to SBI Home Loan Max gain) for car loan as well?
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Old 11th June 2015, 22:43   #352
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Default Re: Which car loan company to go for?

Quote:
Originally Posted by Mr. Nobody View Post
I wish to buy a car this sep or sooner. will take Loan between 2.5 lakhs to 3 lakhs for 2-3 years and rest down payment for wagon r/celerio cng. However by feb-march 16 i expect to get 1 lakh or two spare when a home gets sold. can i prepay loan and save all the interest that is going to bank ? or do banks first take interest and then the principal gets deducted ? basically i feel paying anything more than 20k interest is not good yet i want a car soon.
Why not buy the car in February with the spare money you are going to get? By waiting out these 5 months, you get a 2016 manufactured/registered car Vs. a 2015 one and you would not have to pay anything extra to the bank either.

If you cannot wait till Feb, then the loan can be taken for a longer duration (SBI offers for 7 years) and then you can prepay as soon as you get the spare money.

I would still suggest,wait till Feb.
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Old 11th June 2015, 23:34   #353
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Originally Posted by ILTDrive View Post

Why not buy the car in February with the spare money you are going to get? By waiting out these 5 months, you get a 2016 manufactured/registered car Vs. a 2015 one and you would not have to pay anything extra to the bank either.

If you cannot wait till Feb, then the loan can be taken for a longer duration (SBI offers for 7 years) and then you can prepay as soon as you get the spare money.

I would still suggest,wait till Feb.
In the present scenario its much better to take a loan and invest your own money in equity for the next 3 years.
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Old 12th June 2015, 09:22   #354
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Default Re: Which car loan company to go for?

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Originally Posted by sbala View Post
Does SBI provide overdraft facility (similar to SBI Home Loan Max gain) for car loan as well?
To be honest-Not sure. It is not called out in the Loan Document. But I believe the loan account is created as an overdraft account. Your SBI Account and Loan account are both linked in the bank website immediately after you take the loan and the loan account balance is your loan amount shown as -ve. You can transfer as you wish from the savings to the loan account, I believe you can take out any excess you have parked there, but had not tried it myself when I had the loan active.
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Old 16th September 2015, 18:40   #355
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Default Re: Which car loan company to go for?

Today I checked with HDFC for a car loan since I have a salary account with these guys and these are their answers:

Interest rate
10% fixed monthly reducing type (not sure what this means). When asked she explained with lot of financial jargon which I am not familiar with.

Processing and handling fees
Rs: 1500

Pre-closure / pre-payment penalty:
After 6 months it is 6%
After 12 months it is 5%
After 24 months it is 3% of remaining amount.

Processing time:
2 days

EMI advance:
It depends (not sure it depends on what)

Stamp charges:
0.3 %

Part payment facility:
Available. You can pay a lump sum during the period and EMI will be recalculated.

Last edited by amvj : 16th September 2015 at 18:46.
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Old 22nd September 2015, 19:39   #356
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Default Re: Which car loan company to go for?

I would appreciate information regarding SBI Car loan. I understand that rate of interest is 10.05% (for men) and 10.00% (for woman). Any idea about the stamp duty charges for SBI?
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Old 22nd September 2015, 21:22   #357
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Default Re: Which car loan company to go for?

Quote:
Originally Posted by amvj View Post
Today I checked with HDFC for a car loan since I have a salary account with these guys and these are their answers:

Interest rate
10% fixed monthly reducing type (not sure what this means). When asked she explained with lot of financial jargon which I am not familiar with.

Processing and handling fees
Rs: 1500

Pre-closure / pre-payment penalty:
After 6 months it is 6%
After 12 months it is 5%
After 24 months it is 3% of remaining amount.

Processing time:
2 days

EMI advance:
It depends (not sure it depends on what)

Stamp charges:
0.3 %

Part payment facility:
Available. You can pay a lump sum during the period and EMI will be recalculated.
Better go with SBI as there is no pre-closure charge. HDFC loans are really confusing as I have experienced with housing loan. My car loan is with SBI and I am very happy. Also they calculate interest on daily reducing balance

Quote:
Originally Posted by sbala View Post
Does SBI provide overdraft facility (similar to SBI Home Loan Max gain) for car loan as well?
There is no overdraft facility for car loan account. You cannot transfer money from here to your savings account
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Old 22nd September 2015, 21:48   #358
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Default Re: Which car loan company to go for?

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Originally Posted by dpkbehera View Post
I would appreciate information regarding SBI Car loan. I understand that rate of interest is 10.05% (for men) and 10.00% (for woman). Any idea about the stamp duty charges for SBI?
Stamp duty and processing charges sometimes waived off in the festive season by SBI. Last year when I took Car loan in September, I have to pay some Stamp Duty for rupees 600/- in cash (If i remembered correctly) but the Processing charges was waned off because of the festive season offer.
Please check your SBI branch for the festive season offer, they usually promote in Diwali every year.

Also My Car loan have Overdraft facility too.
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Old 22nd September 2015, 22:04   #359
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Quote:
Originally Posted by dpkbehera View Post
I would appreciate information regarding SBI Car loan. I understand that rate of interest is 10.05% (for men) and 10.00% (for woman). Any idea about the stamp duty charges for SBI?
SBI waives processing fees on Car Loans till 31st December. Stamp duty is 0.5 % of loan amount.
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Old 22nd September 2015, 22:18   #360
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Default Re: Which car loan company to go for?

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Originally Posted by rohanak1 View Post
Better go with SBI as there is no pre-closure charge. HDFC loans are really confusing as I have experienced with housing loan. My car loan is with SBI and I am very happy. Also they calculate interest on daily reducing balance



There is no overdraft facility for car loan account. You cannot transfer money from here to your savings account
Is it possible to get a car loan from SBI without having a SBI account ?
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