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

[aZa]

Car will be registered in Delhi or Noida as i stay here. but the car is being sourced from a dealer outside NCR.

[predatorwheelz]

Originally Posted by aZa

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 indeed a weird problem. First of all, an auto loan has nothing to do with the dealer having an account in the concerned bank. In fact, it has nothing to do with the dealer at all, since the loan is a tripartite hypothecation agreement between you, the bank and MV dept. The only interaction of the bank with the dealer is when the former pays the cost of the car to the latter. Then their relation is over with.

The only (admittedly far fetched) reason I can think of is maybe because the agent is based out of Delhi, so he's been told by HDFC that he'll get his commission only if you buy a car out of Delhi! Otherwise they'll treat it as a direct sale.

I'll suggest 2 remedies:

1)In case you still want to avail a loan from HDFC - Here's a nice way to take the agent for a ride - the way he's taking you. Tell him you'll buy the car from Delhi. Get all the loan papers, complete the documentation. When the loan is sanctioned, note down the loan number. Mind you, a sanctioned loan doesnt mean anything until its disbursed.

Once the loan is sanctioned, the agent has precious little to do with it. You're in direct business with HDFC. Now go buy your car from any dealer anywhere you like. Call up HDFC customer service and quote your pre-approved loan number. They'll readily pay whatever dealer you choose, and you have your car! HDFC treats it as a direct sale in their records, and the poor agent earns nothing.

2) In case you're a good man/prefer to do things morally, just get rid of the HDFC issue altogether. Ask your preferred dealer to give you a proforma invoice quoting the OTR value of the car. Now go to any bank you wish, show them the PI and they'll process the loan for you. Instant freedom from agents/dealer commission! This is particularly relevant if you're taking a loan from a national bank.

@wildon - As you asked, I'm quoting the form nos with what they stand for. Also included a brief single line on what it means to a layman.

Form 20 - Application for registration of a motor vehicle (you need an extra copy for your hypothecator, the bank). This is the most important document to MV. Your RC book will be made based on data you provide here.

Form 26 - Intimation of loss/destruction of the RC.

Form 27 - Application of new registration in case the vehicle is moved to another state (one extra copy is kept by the bank, so that you cannot effect a transfer without intimation to them)

Form 28 - Application of grant of NOC (one extra copy is kept by the bank, so that you cannot effect a transfer to another state without intimation to them)

Form 29 - Notice of transfer of ownership. This will be kept by the bank and furnished to MV if you decide to sell of the car before the loan is over.

Form 30 - Application of transfer of ownership (one extra copy is kept by the bank, so that you cannot effect a transfer without intimation to them). This is again in duplicate so you cannot effect a transfer without intimation to the bank.

Form 34 - Application to enter into a Hire Purchase Agreement subsequent to registration. This is the most important document to the bank from a legal viewpoint, as the HP agreement on the registered car cannot be held valid without Form 34.

Form 35 - Notice of termination of Hire Purchase Agreement. This is the most important legal document for you.The bank will furnish Form 35 to MV at the end of the loan period, indicating that the HP Agreement is over and you're the single legal owner of the car.

[aZa]

thanx predator!! I will be visiting the banks tom.

[MileCruncher]

Originally Posted by aZa

Car will be registered in Delhi or Noida as i stay here. but the car is being sourced from a dealer outside NCR.

Also AFAIK you 'll also have to pay the difference of tax if bought from a different state and registered in a different state. Unless offcourse you are buying from CSD.

[amanmalhotra]

Originally Posted by HappyWheels

Aman,

It will take close to 10 working days. Do not expect anyone to call and tell you if the approval has been given. And do not try calling on those numbers that they might have given to check the status - those lazy bones just do not pick up any calls!!!

Just call the person who is handling you case regularly and check for the approval and then get him to get an appointment for you.

HappyWheels, It is almost 13 working days since I applied for the car loan, and I managed to get my loan approved. Atleast it is sanctioned now (have a letter stating so), I spoke with the manager of the branch which put up my case, and he has asked me to wait for a couple of days, and RACPC guys will contact me, else he will talk to them directly.
Apparently, there is huge rush of people applying for car/housing/education loans in SBI. Hence delays are to be expected. Just wondering now, how long would the disbursement take from now. I guess would feel lucky if it happens within this week.

[wildon]

^^^ Yes i too got a call from SBI Loan dept. St.Marks road, for verifying my Name, Address etc, and the guy who spoke to me said,that the loan is approved and disbursement will take place in a weeks time. He also said there is a huge pile of application for car loans thats why the processing get delayed.

Meantime Axis bank called me saying that they are improving the interest rate they offered me last time (10.50% fixed) to 10.00% - (fixed) and faxed me the sanction letter in a flash. I think because of SBI other banks are forced to cut the interest rate. Its better for the loan seekers.

[HappyWheels]

Aman,

Good to know that your loan is approved!

Get in touch with your agent after couple of days and ask him to get an appointment for you to sign the documents.

It looks like SBI's 8% interest rate has got everyone running for it! Hence the heavy rush and the delays.

[~~VinZ~~]

Even i am in the same dilemma now. i have dropped SBI because the minimum they take is 20 days


That brings me to AXIS, HDFC, BOI and corporation bank for my 3 years loan for 5.5 lacs.

1) AXIS 10.5% with 5% preclosure (emi in advance)
2) Corporation 10.5% with 0% preclosre (emi in arrears)
3) HDFC 10.25% with 3% preclosure (they came up with this offer after speaking a lot)
4) BOI gave me shocking offer of 8.5% with no preclosure. But they are not ready to give me the loan as i am not their customer. The customer service people said they can give me loan but not hte branch people. ??

I would wait for BOI and if that is not working i would go with HDFC mostly.

[MileCruncher]

Originally Posted by wildon

^^^ Yes i too got a call from SBI Loan dept. St.Marks road, for verifying my Name, Address etc, and the guy who spoke to me said,that the loan is approved and disbursement will take place in a weeks time. He also said there is a huge pile of application for car loans thats why the processing get delayed.

Meantime Axis bank called me saying that they are improving the interest rate they offered me last time (10.50% fixed) to 10.00% - (fixed) and faxed me the sanction letter in a flash. I think because of SBI other banks are forced to cut the interest rate. Its better for the loan seekers.

Having had car loans previously from ICICI, Citi and SBI, I do agree that the loan application procedure is a pain compared to any private bank. But once your loan is approved and they give you the sanction letter, its a matter of a day to get the loan disbursed.

But hearing accounts from various people, I think SBI is the least pain and surprises after the loan is disbursed.

[bnzjon]

Originally Posted by ~~VinZ~~

3) HDFC 10.25% with 3% preclosure (they came up with this offer after speaking a lot)r BOI and if that is not working i would go with HDFC mostly.

VinZ, Is the 10.25% HDFC interest rate for EMI in advance (or) Arrear ? Recently i applied for a HDFC car loan and after much negotiation, settled for 10.50% (EMI in advance) for 5 years. Per lakh EMI was Rs. 2130

[amanmalhotra]

Originally Posted by MileCruncher

Having had car loans previously from ICICI, Citi and SBI, I do agree that the loan application procedure is a pain compared to any private bank. But once your loan is approved and they give you the sanction letter, its a matter of a day to get the loan disbursed.

But hearing accounts from various people, I think SBI is the least pain and surprises after the loan is disbursed.

MileCruncher, I agree with you that SBI would be the least pain and surprises after the loan is disbursed. But they really make you go through havoc/chaos before it gets approved. Anyways, hoping that the worst is over for me.

[amanmalhotra]

Originally Posted by amanmalhotra

MileCruncher, I agree with you that SBI would be the least pain and surprises after the loan is disbursed. But they really make you go through havoc/chaos before it gets approved. Anyways, hoping that the worst is over for me.

Well, looks like worse isn't over for me as yet. My file hasn't reached the appointment department as yet in RACPC Bangalore, so cannot get an appointment today perhaps. Tomorrow and day after they are on strike, so no business on these two days. So, at best I can have an interview with them on Monday now. Man, this is turning out to be lot big of a chaos than what I originally thought it would have been. I am seriously so pissed, that I want to move over to another bank, but then there is second side of me, which says you have waited so long, might as well for a few more days.

[ms001]

Anyone has experience with canara bank?
they are offering first year 8.5 2nd and third 9.5 , i have been told they approve it in 8-10 days

[MileCruncher]

Originally Posted by amanmalhotra

Well, looks like worse isn't over for me as yet. My file hasn't reached the appointment department as yet in RACPC Bangalore, so cannot get an appointment today perhaps. Tomorrow and day after they are on strike, so no business on these two days. So, at best I can have an interview with them on Monday now. Man, this is turning out to be lot big of a chaos than what I originally thought it would have been. I am seriously so pissed, that I want to move over to another bank, but then there is second side of me, which says you have waited so long, might as well for a few more days.

Has your verification got completed. In our case, verification at Home Address took the maximum time. As a matter of fact our approval was done within a week but the verification took 15 days and held up the process. Also I and the Sales Executive from teh Dealership made quite a few visits to teh RACPC Hyderabad to follow-up on my file.

All the best mate

[amanmalhotra]

Originally Posted by MileCruncher

Has your verification got completed. In our case, verification at Home Address took the maximum time. As a matter of fact our approval was done within a week but the verification took 15 days and held up the process. Also I and the Sales Executive from teh Dealership made quite a few visits to teh RACPC Hyderabad to follow-up on my file.

All the best mate

Yeah, the verification and everything is behind me now
Have got an appointment on Monday when I have to go for documentation, Form20, invoice-loan amount payment receipt etc. I am told it should take a day from that time on.