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

[rishi_kapoor]

Guys, can someone guide me on best second hand car loan? There is a twist in story as well, I am located in Delhi and car is located (and registered) in Tamilnadu!! (Don't ask me story and reason behind this )

[wildon]

Originally Posted by HappyWheels

@Wildon,

Just make it a a/c payee check. They stamp the a/c number to it. You just need to write the date and amount (in numbers & words) in the check.

Originally Posted by amanmalhotra

Yes, just cross the cheques and take them, and perhaps sign them before going (will save sometime). The amount will be told by them during documentation.
There is no increase due to opting for a particular date.
But, put the dates when you go to RACPC, since I am not sure if the outer limit for payment is 7th or 10th (just forgot).

Also, as HappyWheels stated, they will stamp the "Pay to" part

Thanks for those valuable inputs. Today is the D day.

[amanmalhotra]

Originally Posted by wildon

Thanks for those valuable inputs. Today is the D day.

Best of luck dude, hope there are no surprises there

[achinthg]

Today I went to SBI to sign the loan agreement. Here is my experience:

My appointment was at 10:30 AM and I reached their office at 10:20 AM. Was asked to meet Mr.Vaidya who re-directed me to Mr.Sanjay who has been assigned to handle my file. As Mr.Sanjay was already with another customer I waited for half an hour and then when I approached Mr.Sanjay was informed that my file was not assigned to him. Went back to Mr.Vaidya who after some research realized my file was assigned to Mr.Girish.

Mr.Girish asked me to pay Rs.680 for stamp duty which I asked my wife to pay in the SBI branch across the street as I was doing the paperwork. Signed on lot of documents and then was asked to fill 24 PDCs completely. When I had taken my home loan from IDBI I was asked only the sign the PDCs but with SBI I had to fill all the details myself . Next was asked to go to the PDC section to submit the PDCs and get acknowledgement form.

Next was the life insurance to cover my loan for Rs.4350 for which I had to contact another person and fill another form. Taking insurance is mandatory. When I asked for an acknowledgement I was informed there will be none and I will get the policy papers only after 2 months !!!

Next I was asked to go back to Mr.Vaidya with the counterfoil for the Rs.680 for getting some documents franked. The stamps added to Rs.660 but I had paid Rs.680 - is Rs.20 for chai paani???

After all this running around I was finally asked to submit the down payment receipts I had made to the dealer. DP + Loan should be equal to invoice amount. Then I was asked submit signed form 20 provided by my dealer and a copy of my driving license. Finally I was told that my DD will be available at 5:30 PM which the dealer needs to collect (will not be given the me).

The entire process took 2 hours 20 minutes !!!

[wildon]

^^ Appointment was at 4.p.m, reached there at 3.30P.m. Case handled by Mr.Sanjay around 3.40 p.m.

I was applied for Rs.4 Lac loan for 4 years and SBI given a loan of 403000/-. The additional 3000 is for SBI Life insurance. Signed all documents. Rs.480/- deducted from my SBI a/c for Stamp Duty charges.

The actual premium for SBI Life insurance was Rs.2155/-. For roundoff purpose they have added/given Rs.3000 in the loan amount. The difference of Rs.845/- is credited back to my Car Loan Account in the same day.

Given 24 PDC which is filled and opted for 7th of every month(you can only opt either 1st or 7th). so my first EMI starts from 7th Sep '09.

Now I was paid only Rs10000/- as booking amount. Total invoice amount is Rs.664639/-
Loan amount is 4Lac. As per SBI i have to pay the rest amount of Rs.254639/- and show them the receipt then they will release the payment.

Out of this Rs254639/- the insurance amount is Rs.19328/- quoted by the dealer. I have got a quote of Rs.12120 from another insurance provider which i wanted to go for. So there will be a shortage of Rs.7208/- in the receipt. Is that will be a problem?

[amanmalhotra]

Originally Posted by wildon

Out of this Rs254639/- the insurance amount is Rs.19328/- quoted by the dealer. I have got a quote of Rs.12120 from another insurance provider which i wanted to go for. So there will be a shortage of Rs.7208/- in the receipt. Is that will be a problem?

Try and negotiate with your dealer, tell him that you are getting a quote for a much lesser amount. Same thing happened with me, and I managed to get the dealer quote down a lot.

[MileCruncher]

Originally Posted by amanmalhotra

Try and negotiate with your dealer, tell him that you are getting a quote for a much lesser amount. Same thing happened with me, and I managed to get the dealer quote down a lot.

+1 to that. The dealer will be more than happy to match the quote. Else tell him that you'll get the covernote yourselves.

Cheers

[bnzjon]

Originally Posted by wildon

^^ Appointment was at 4.p.m, reached there at 3.30P.m. Case handled by Mr.Sanjay around 3.40 p.m.

I was applied for Rs.4 Lac loan for 4 years and SBI given a loan of 403000/-. The additional 3000 is for SBI Life insurance. Signed all documents. Rs.480/- deducted from my SBI a/c for Stamp Duty charges.

The actual premium for SBI Life insurance was Rs.2155/-. For roundoff purpose they have added/given Rs.3000 in the loan amount. The difference of Rs.845/- is credited back to my Car Loan Account in the same day.

Given 24 PDC which is filled and opted for 7th of every month(you can only opt either 1st or 7th). so my first EMI starts from 7th Sep '09.

Now I was paid only Rs10000/- as booking amount. Total invoice amount is Rs.664639/-
Loan amount is 4Lac. As per SBI i have to pay the rest amount of Rs.254639/- and show them the receipt then they will release the payment.

Out of this Rs254639/- the insurance amount is Rs.19328/- quoted by the dealer. I have got a quote of Rs.12120 from another insurance provider which i wanted to go for. So there will be a shortage of Rs.7208/- in the receipt. Is that will be a problem?

This is not a problem as you are taking only 60% (Rs 400k out of Rs. 664K) of the total amount as loan. Initial proforma invoice amount is only a notional amount and there could be a difference of 15% due to discounts, freebies etc.

Your eligibility of Rs 400K is calculated on your net worth subject to a maximum of 85% or 90% of the invoice value. As long as the loan amount doesnot exceed 85% of the invoice value, your banker will not have any problems.

Are you taking any accessories from your dealer ? if yes, ask them to include the same in your invouce which would make it up closer to that proforma invoice amount.

Beleive me, this will not be a problem. Please relax.

[amanmalhotra]

Originally Posted by bnzjon

This is not a problem as you are taking only 60% (Rs 400k out of Rs. 664K) of the total amount as loan. Initial proforma invoice amount is only a notional amount and there could be a difference of 15% due to discounts, freebies etc.

Your eligibility of Rs 400K is calculated on your net worth subject to a maximum of 85% or 90% of the invoice value. As long as the loan amount doesnot exceed 85% of the invoice value, your banker will not have any problems.

Are you taking any accessories from your dealer ? if yes, ask them to include the same in your invouce which would make it up closer to that proforma invoice amount.

Beleive me, this will not be a problem. Please relax.

Bnzjon, the thing is that SBI wants a proof that you have indeed paid the balance amount and that is proved by balance receipts and invoice value.

[agbenny]

My experience with SBI was tiresome, But got it somehow after 10 days. Part of reason is holidays, strike and the PO trainees who do not know the job!!!
I wouldn't recommend SBI just for a .25% diff (average 9.75 for 3 years). Do not go for SBI if you want 5 years tenure.

HDFC is anyday better if you have good tracks. Easy process, they were ready for the same 9.75% for 3 years!

[rammishra]

I am buying an Indica Vista and have applied for Car loan through SBI Main Branch at Mumbai. I had also applied for loan at HDFC also but finally i am planning to go with SBI Loan.


However i would like to mention that SBI is best, if you are not in hurry and have patience. Also if you have time and you can visit RACPC, you can track down your case easily at their inquiry.

Here is My experience:

As rightly pointed out by predator there is lot of negotiations you have to do with private bank DSA's if you have to get the best interest rates. HDFC bank DSA gave me first quote at 11.75% + 50% processing fee + .5% off as preferred customer, but when i said i am not happy with this offer and i am going with SBI they quoted me 10.5% + 50% processing fee+ No advance EMI + only 1% prepayment charges.

I would also like to mention that private banks have different interest rates for different make and model of Cars also depending upon their resale Value. This i came to know while negotiating my loan amount.It was different interest rate for Maruti and Tata Car. I was offered 10 % and 100 % of ex-showroom cost for Wagon -R, where as 10.5 and 90% of ex showroom cost For indica Vista.

However i decided to go with SBI current offer of 8%for 1st year and 10% for 2 & 3 year and floating rate for 4th and 5th year.Reason being that i have a transferrable job and wanted to register vehicle in my home town.Which SBI says is possible whereas HDFC says that i will have to register vehicle in mumbai only.

here is date wise break down of my loan process till now:

24July: Submitted my loan application with documents at SBI Main Branch Fort

07 th Aug: called up customer relation clerk at Fort main Branch Mumbai to know loan status. He says, i have forwarded your file to RACPC BKC. When i asked give some telephone number where i can know status of my Loan process, he said it is not possible to find out, when it is completed you will get a call.

07th Aug: I called up SBI help line and asked them how much time maximum it should take to process the loan. The said it should take one week. I told them about delay in my case and asked them for any number where i can confirm status of my case. I got the numbers of RACPC BKC from them

08th Aug: Visited RACPC BKC and came to know that My Loan file reached RACPC Bandra Kurla Complex on 4th Aug.AT RACPC from inquiry i came to know the name of concerned clerk who was alloted my file. I met him initially he said he hasn't received my file, but finally located that it was in his table drawer.

(Here i would like to mention that this 10 day delay was entirely due to lazy attitude of customer relation clerk at main Branch. He could have hurried up the file but he did not. Also when ever i am approached him, he refused to give any number about inquiry, where loan status can be confirmed).

13 Aug: Received verification call in office and verification guy visited my residence.
18 Aug: Visited RACPC again to know status, was told by clerk that he has cleared the file and forwarded it to sanctioning officer for approval.

Remaing steps:

1) Loan account will be opened after my loan is sanctioned. On 18 Aug only cases till 12th Aug were cleared.
2) After loan account is opened, i will receive call to go there and sign agreement

Expecting another 10 days time in all this.

Reasons for this delay:

a) 10 Days delay by clerk at SBI main branch in forwarding the file.
b) 02 days bank strike on 5th and 6th
c) 14,15,16 Aug holiday
d) 18 Aug Parsi new year Holiday

Other reasons:

a) I personally saw at RACPC, clerks really loaded with files.Lot of car loan applications due to lowest interest rate offer of 8% by SBI.
b) RACPC deals with other applications also like Home Loan, Education loan etc. All the applications come to a centralized clerk, who redistributes them. He is hidden behind files.

Why i am still sticking to SBI

1) I am Taking my car through CSD and my car will be available only after 7-10 days says dealer.
2) Private bank (HDFC) not giving me option to register vehicle at my hometown.
3) High Prepayment charges at HDFC. I plan to prepay the amount after 2 years.

[kumar7]

Yesterday I finally closed the deal and booked my Fiesta and paid contribution from my side. Now need to process the loan with SBI for which I bought the loan & a/c opening application form from bank.

The form is so lengthy and I don't know will I able to fill all section on my own without someones help. The dealer said he will direct someone who will keep track of my loan but atleast I need to put application form with bank.

Below are few doubts -

• What is the repayment rules?
• What is the minimum period within which I can close the loan without any charge?
• I am planning to go for 7 years tenure and will close the loan before hand. With this there will be two benefits what I think (not sure) -
  a) Less EMI per month
  b) Will be charged less interest (not sure if am correct) as I am planning to start doing repayment within year. But don't want risk of high EMI eventhough its not really a issue but still if its possible to avoid then I will prefer.
  
  Initially I planned to go for 5 years tenure but then came to know that there is provision of 7 years too but again dont know what is the drawback of it? The only drawback I know is if I go pay EMI for 7 years then it will be huge cost but what if keep on doing repayment but initially I ask them for 7 year term?

[nutmello]

dear all
please avoid loans at any cost esp on cars and personal things.these asstes depreciate faster than we can think.we end up making banks richer and we will left much poorer in the long run. whatever intital payment you have, use it to buy a used car in good codition and say bye to bank. never get tempted by looks of a new flashy car. it HURTS big time later.
Market is flooded with used cars of all sorts. i picked up a 7000 km run wagon r 2007 model fully loaded for 2.2 lakh yesterday cash down.
loans come with lot of strings. 30 days will fly like 24hrs. it really socks you when ECS gets debited at 00.00 hrs on the due date.you need to fund account atleast 1 or 2 days in advance. any amount prepaid will remain in account itself but will not be reflecting in loan account. avoid ANY banker as far as possible.

[kuttapan]

Originally Posted by kumar7

The form is so lengthy and I don't know will I able to fill all section on my own without someones help. The dealer said he will direct someone who will keep track of my loan but atleast I need to put application form with bank.

Below are few doubts -

• What is the repayment rules?
• What is the minimum period within which I can close the loan without any charge?
• I am planning to go for 7 years tenure and will close the loan before hand. With this there will be two benefits what I think (not sure) -
  a) Less EMI per month
  b) Will be charged less interest (not sure if am correct) as I am planning to start doing repayment within year. But don't want risk of high EMI eventhough its not really a issue but still if its possible to avoid then I will prefer.

The form is a put-off for SBI, and nobody is going to assist you in filling it either. However, once you go through the grind and actually get the loan approved, do not fret.

Repayment is fairly straightforward affair with SBI. You can go in for 7 year, if you think it suits your current financials better(but it costs more in interest, even if you pre-pay, check out how a reducing balance loan scheme works) and pre-pay after 6 months(minimum). They do not charge any pre-closure charges, if you pay from your own funds - read, own account. I have done the exact same thing.

Only hassle in my case was, the manager of ITPL branch(whom I was talking to regarding the loan) had got transferred to Doorvani nagar, during the tenure of the loan and the guy had taken my loan along with him(he was about to be transferred when I filled the forms), so I had to go all the way to this branch to get the papers signed. And since this was inside ITI premises, the manager says that I have to wait as ITI customers get more preference, even if I came earlier !! . SBI will never get rid of it's beurocratic roots. I swallowed my ego at that time, but I surely don't like to be treated like a second rate customer. After collecting the papers from this branch, I go to RACPC Bangalore to get the PD cheques and the formalities done. Takes half a day, but I got rid of SBI ultimately.

[kumar7]

Originally Posted by kuttapan

The form is a put-off for SBI, and nobody is going to assist you in filling it either. However, once you go through the grind and actually get the loan approved, do not fret.

Repayment is fairly straightforward affair with SBI. You can go in for 7 year, if you think it suits your current financials better(but it costs more in interest, even if you pre-pay, check out how a reducing balance loan scheme works) and pre-pay after 6 months(minimum). They do not charge any pre-closure charges, if you pay from your own funds - read, own account. I have done the exact same thing.

Only hassle in my case was, the manager of ITPL branch(whom I was talking to regarding the loan) had got transferred to Doorvani nagar, during the tenure of the loan and the guy had taken my loan along with him(he was about to be transferred when I filled the forms), so I had to go all the way to this branch to get the papers signed. And since this was inside ITI premises, the manager says that I have to wait as ITI customers get more preference, even if I came earlier !! . SBI will never get rid of it's beurocratic roots. I swallowed my ego at that time, but I surely don't like to be treated like a second rate customer. After collecting the papers from this branch, I go to RACPC Bangalore to get the PD cheques and the formalities done. Takes half a day, but I got rid of SBI ultimately.

Thanks Buddy! We have SBI bank adjacent to my office so when I get free time I can walk down that is good thing but I dont want to open saving account in this branch as I prefer the branch which is close to my residence.

From your review it seems that for sure they will going to waste my 1 -2 workings