Which car loan to go for BOI \ SBI \ HDFC ?

[harry10]

Off topic- Has anyone taken car loans from OBC and Andhra bank as i got accounts in them too?
I just want to know if they are better than SBI in some way.

[kuttapan]

Originally Posted by rjstyles69

Folks what do you all think of State bank of Hyderabad , any experience dealing with them ? In my quest for my new vehicle I zeroed in on SBI for the finance part, however SBI has a lot of formalities and is time consuming.

You need oodles and oodles of patience when dealing with SBI. Therefore, I suggest any other bank, for whom time and patience are in short supply. That said, promises before loan remain promises and processing time can be longer than what is promised. HDFC advertises 3hours approval, but in reality, things can take anywhere from 2 days to a week or more, depending upon documentation. No exp with SBH, though.

[aZa]

HDFC loan mela is on ...


50% off on processing charge
.5% off on the interest rate


Loan on PHONE thing is also there, this is a pre-approved loan if u have an account in HDFC.

[rjstyles69]

Originally Posted by kuttapan

You need oodles and oodles of patience when dealing with SBI. Therefore, I suggest any other bank, for whom time and patience are in short supply. That said, promises before loan remain promises and processing time can be longer than what is promised. HDFC advertises 3hours approval, but in reality, things can take anywhere from 2 days to a week or more, depending upon documentation. No exp with SBH, though.

Aye thanks for the reply. Where have thy been all these days ?

Well like I said, I have given them a buffer of another 6 working days and however the loan amount is 50% of the cars on road price. So the rep from SBH said that it wouldn't take long. Keeping my fingers crossed now.

[madhukar_n]

Axis bank has some deal - 9.75% for a 3 year and 10.7% for 4 years.
But i applied for my loan in Corporation Bank. I bank with them.. so he will be approving the loan in 3 days. the interest is 11 but no processing fee and also no pre-closure fee.

[predatorwheelz]

Originally Posted by balajird

@Predator, it would be more helpful if you can explain whether the same ballooning interest (or whatever you name it, apologies, those are greek and latin for me) holds good for home loans as well.

Balaji, I'm sorry I cant give you a clear picture about home loans. They're an altogether more vast area of finance, with (optionally) much more complicated structures and longer tenures. However, as far as I think, most housing loans available in the market are of a ballooning nature. Do check with an expert on home loans.

Originally Posted by wildon

Got a quote directly from Axis bank

Loan Details :

Rate of Interest they are saying @10.50%
No fees other than Rs.500 as Stamp Duty

They told me over phone that its fixed interest rate for the loan period. But they have not yet confirmed me these part through wriitten format .

Wildon,

In this market, its difficult getting a floating rate loan from a private bank. In any case, a fixed rate loan seems like a good idea, now that the banks have discussed with RBI and confirmed that interest rates will go up by next quarter.

Originally Posted by ArunV

OT: Is ther any minimum amount for loan? like a certain percentage of car value.

One of my friend was trying to get a loan for 1 Lac and was denied saying that the amount was too less.

Nope, there's no minimum amount for a loan. The only possible reason I see is because your friend was looking for a lengthy repayment period for a small amount (1 lac), and the sales guy didnt want to go through the hassle since he wouldnt have earned much commission. In case you applied through an agent, report the whole incident to the bank he represents.

Originally Posted by shuvc

For SBI, does processing happen faster if one has an account with the bank?

No, SBI (and all nationalized banks) have to go through the same approval process regardless of whether the customer is existing or new to the bank. The only possible benefit you'll have is that you can choose to repay through ECS rather than write out 36/48/60 cheques.

Originally Posted by aZa

HDFC loan mela is on ...


50% off on processing charge
.5% off on the interest rate


Loan on PHONE thing is also there, this is a pre-approved loan if u have an account in HDFC.

Processing charge? What processing charge? Boss, wake up and smell the coffee! This is not a corporate loan of crores which involves a complicated structuring, lengthy credit approvals, extensive documentation and ROC interference (incidentally, thats what I do for a living - sell and maintain corporate relationships).

An auto loan is like an FMCG product by comparison - standardized documentation, templated credit approval, and revenue by sheer numbers! Trust me, there's no real processing which needs to be done. All you do is end up fattening the realization packet for the bank.

So ignore fancy sales pitch like "50pct off on processing charge" and just go on demand waiver of the entire thing. They'll first cry, then plead, then blackmail you that the approval can't happen. But trust me, if your credentials are in order, the approval will happen in a flash!

As for the "pre-approved" loan part, read my comments in one of the previous posts.

Disclaimer: This is just friendly advice from one auto-enthusiast to another. Most auto loan people wont be pleased that I'm letting you in on their secrets.

Now for 2 more bits of advice (not specific to any one's comments).

First, auto loans which promise a lower interest in the first year (and higher in the second year) are good only if you're not taking a ballooning interest scheme. In the latter, you pay a minor portion of principle and majority portion of interest. So the discounted rate you're getting on the first year wont really help your principle repayments in the later years.

Second, and this is purely from experience. For people looking for loans from OBC, SBH and other smaller nationalized bankers. There wont be much difference in approval and documentation procedures as compared to SBI. However, these banks have far smaller infrastructure than big brother. So if you're looking for alterations during the term of the loan - like location change (Sir, please arrange to move my account from Kolkata to Ernakulam and take fresh cheques) or selling off the car (Sir, please release hypothecation on said car and I shall adjust principal outstanding) remember that a fair bit of running around will be in order.

[HappyWheels]

Here is my experience with SBI.

The documents given for loan were:
2 photos
Pan card copy
Address proof (rental agreement)
Form 16 for last 2 years
Last 3 payslips
Bank statement for last 6 months

Since I was not in the country for the first 5 months of this year, I had to give the relocation letters and Singapore bank statement and salary slips; this was an exception case.

The loan was approved in 8 working days from the day the agent came and took the signature. You do need to keep following up with agent.

After almost a week of trying to get appointment, finally had to get the agent to get one for me. It is easy for them, so do it in the first place itself.

Last Monday, went to SBI Loan section and signed tons of papers and 24 check leaves for the 1st and 2nd year EMI's.

Had to make a deposit of 1190Rs for the loan charges. This was thru a deposit slip, so it was not a chai-biscuit expense.

Selected my own date of repayment and mentioned that on the checks.

All done and out in 1.5 hrs.

Loan done!

EDIT: and yes, I got the 8%, 10%, 10% and rest 11.5% interest rate, based on the current offer.

[MileCruncher]

Originally Posted by predatorwheelz

No, SBI (and all nationalized banks) have to go through the same approval process regardless of whether the customer is existing or new to the bank. The only possible benefit you'll have is that you can choose to repay through ECS rather than write out 36/48/60 cheques.

SBI has stopped taking cheques. They only take 6 cheques and otherwise its an ECS.

One thing that I have realised with SBI is after the initial struggle, there are no hidden surprises

[wildon]

Originally Posted by predatorwheelz

Wildon,

In this market, its difficult getting a floating rate loan from a private bank. In any case, a fixed rate loan seems like a good idea, now that the banks have discussed with RBI and confirmed that interest rates will go up by next quarter.

Got a E-mail confirmation from AXIS bank saying interest rate is fixed @10.50% for the 4year loan period and one time stamp duty charge of Rs.500/-

The executive called me on Saturday evening saying that my loan got approved and he is coming with the agreement. Since i was out of station i asked him to drop the agreement papers at my office. I heard from the executive that its a 64 page Agreement which i have to sign!

I wonder what those 64 pages saying ... will update you in detail tomorrow.

[wildon]

ok Got the 2 Books (Agreement Papers) in my hand.

1. 62 Page book let with Acknowledgement Form, Loan Cum Hypothecation Agreement, Scheule to loan Cum Hypothecation Agreement, Irrevocable power of Attorney, Addendum ot the loan cum hypothecation agreement and poa, and rest are various forms which i will tell you later in detail.
2. A customer copy booklet contains Loan Cum Hypothecation Agreement, Scheule to loan Cum Hypothecation Agreement, Irrevocable power of Attorney, Addendum ot the loan cum hypothecation agreement

Nothing has been filled from the Bank part.

On the "Most Important Document" The following are the additional terms and conditions to e complied with by you:

1.You will pay the EMI's through Post Dated Cheque (PDC) and required to furnish for the entire tenure of the loan, in advance.In case the EMI's are paid through standing instruction from your SB account maintained with us, you will no t shift the salary/ SB accoount to other bank during the currency of the loan. In such a case AXIS bank will be notified at least on month in advance. Further, in case of standing instructions, the applicant would be required to furnish 3 security cheques. In case of ECS Repayment Mode 5 security chequs, the applicant would be required to furnish 4 EMI cheques + 1 security cheque +1 cheque for immediate installment & another cancelled cheque.

2. The laon shall be used only for the purpose for which it is sanctioned. If the disbursement takes place between 1st to 23rd of the month the immediate EMI date will be next month 1st. And if the disbursement takes place afer 24th of the month, the EMI date will e on 1st of the next to next month.

3. In the event of any change of address for communication, any change in job, profession, by you or your co borrrower, or the guarantor, the same should be intimated to the bank, on month in advance.

4. In the event of default by you, as per the clauses of the loan agreement, in payment of loan installments, interest, costs etc, the loan shall be recalled forthwith costs, and charges etc, failing which, the bank reserves the right to seek legal remedies to recover its dues from you and guarantor. Any "Event of Default" as defined under the loan agreement shall attract penal interest @24% per annum or such other rate of interest as decided by the Bank.

5.The disbursement of the loan is subject to the execution/submission of necessary documents, which forms part of the overall sanction communication from us.

6. AXIS Bank is entitled to add to, delete or modify all or any of the aforesaid terms and conditions.

7. Pre- payment charges -5% of he outstanding principal amount plus service tax as applicable after 6 months, & 10% prior to 6 months on principle outstanding.

8. I/WE have not made any payment in cash, bearer cheques in connection with this application to the executive collecting my/our application forum.

9. The Bank also reserves the right to assign, securitise or otherwise transfer the loan hereby agreed to be granted (or a portion thereof) to any person or third party ("assignee") without any notice or consent along with or without underlying security/ies (movable and/ or immovable) created or to be created for the benefit of the bank and pursuant to which the assignee shall be entitled to all or any rights and benefits under the loan and other agreements and/ or the security/ies created or to be created by me/us or the guarantor.



Is this regular practice?

[wildon]

Originally Posted by wildon

ok Got the 2 Books (Agreement Papers) in my hand.

1. 62 Page book let with Acknowledgement Form, Loan Cum Hypothecation Agreement, Scheule to loan Cum Hypothecation Agreement, Irrevocable power of Attorney, Addendum ot the loan cum hypothecation agreement and poa, and rest are various forms which i will tell you later in detail.

1. Disbursement Request Form
2. Post -Dated Cheques Form
3. Vehicle surrender letter from the customer
4.Declaration of Joint Family
5.Authority letter for execution of loan documents in case of partnership
6.Standing instruction - Recovery of EMI on my car loan Account
7. A form addressing to the manager saying i have sold my car to so and so person etc.. I shall thank you to transfer the interest vested in the policy covering the above to the name of the buyer.
8.Form No:60
9. Form 20
10 Form 20 (again)
11. Form 26
12. Form 27
13. Form 27 (again)
14. Form 28
15. Form 28( again)
16. Form 28 (again)
17. Form 29
18. Form 30
19. Form 30 (again)
20. Form 34
21. Form 35
22. Signature of Verification
23. Declaration by Proprietorship

Since i have applied for the loan as individual and no guarantor or co-borrower included which of those form are applicable to me?

I m surprised to hear from the executive that i have to sign in all those places/form where X mark is present. Any advise of this guys.

MY SBI loan application is also under process .

[predatorwheelz]

@wildon - reg the clauses you've received, these are standard bank loan clauses. I didnt find a single clause out of line with what banks normally document. So ok.

Reg the documentation, Forms 20, 26-30, 34 & 35 are standard motor vehicles clauses. You can make out what each form stands for. (If others are interested, I'll separately outline on this thread what each form stands for). The reason you're having to sign multiple copies of form 20, 27 & 28 is because you're entering into a tripartite hypothecation agreement between yourself, MV authority and the bank. Otherwise only 1 copy of the form (and one duplicate with you) would have been enough.

Lastly, dont lose too much sleep about multiple signatures. The documents you're signing are pretty standard loan documentation, and more than required signatures will not harm you.

[wildon]

Originally Posted by predatorwheelz

@wildon - reg the clauses you've received, these are standard bank loan clauses. I didnt find a single clause out of line with what banks normally document. So ok.

Reg the documentation, Forms 20, 26-30, 34 & 35 are standard motor vehicles clauses. You can make out what each form stands for. (If others are interested, I'll separately outline on this thread what each form stands for). The reason you're having to sign multiple copies of form 20, 27 & 28 is because you're entering into a tripartite hypothecation agreement between yourself, MV authority and the bank. Otherwise only 1 copy of the form (and one duplicate with you) would have been enough.

Lastly, dont lose too much sleep about multiple signatures. The documents you're signing are pretty standard loan documentation, and more than required signatures will not harm you.

Thanks for your clarification its give me more relief/confidence as i m taking my first loan.
It will be great to the users here if you can outline each form stands for.

As i said earlier i m waiting for my SBI process . what is your opinion . Is it worth for a wait? or shall i proceed with this?

[aZa]

Need a quick help!

I've applied for loans through HDFC and tata finance, the loan is almost done. The problem is that i had told the agents about buying the car from outside NCR. Initially they said it will ok as long as the dealer had an HDFC account. But now the agent is saying that i will have to take the car from delhi itself as they wont be able to provide a loan for a vehicle outside delhi or that the dealer is not registered with HDFC.

This is really weird.

Now i'm applying for a SBI loan also.

Any other banks that you think will help me out with loans for cars purchased outside delhi/ncr ?

[MileCruncher]

Originally Posted by aZa

Need a quick help!

I've applied for loans through HDFC and tata finance, the loan is almost done. The problem is that i had told the agents about buying the car from outside NCR. Initially they said it will ok as long as the dealer had an HDFC account. But now the agent is saying that i will have to take the car from delhi itself as they wont be able to provide a loan for a vehicle outside delhi or that the dealer is not registered with HDFC.

This is really weird.

Now i'm applying for a SBI loan also.

Any other banks that you think will help me out with loans for cars purchased outside delhi/ncr ?

As much as I know any bank will want to have the car registered within their jurisdiction.