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

[KITE RUNNER]

It will be wise to go for an SBI loan any given day. Agreed, the initial processing is a little cumbersome, but once it is sanctioned you will have peace of mind.

There wont be any other hidden charges or pre closure penalty as with HDFC.

[amanmalhotra]

Originally Posted by 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?

Well, in my case, I just went to an SBI branch, and filled the application form in front of them. They rectified mistakes made by me and sent it across to RACPC.
Regarding the preclosure/prepayment, the branch which was putting up my loan case, the loan officer there told me that in case you are paying money from your own pocket, then there are no charges for preclosure/prepayment.
But when I went to RACPC and asked the same question, the lady there told me that it will be charged at 2% of amount being paid for preclosure/prepayment if payment being made during <50% of loan tenure being done. So, for a 5 year loan, if I am making a prepayment during the initial 2.5 years, then I would be charged 2% of the money that I am paying for prepayment. After 2.5 years there is no charge.

[rammishra]

Hi Kumar,
It is better to go for as less loan period as you can afford. Because if you have 07 Years loan period, you will end up paying more interest on you loan.

Regarding SBI Loan, I just completed loan formalities from SBI at mumbai and got my cheque in hand.SBI loan is best option any day if you are ready to do little bit of running around and have little time and patience.

SBI has a promotional offer going on till 30th sep wherein:

1. There is no processing fee charged.
2. 1st year loan will be at 8% PA
3. 2 & 3 Year Loan will be at 10% PA
4. remaining will be at floating rate(Market rate) i.e today it is 11.75 so SBI will charge .5 % less for 4,5 year i.e. 11.25%
5. prepayment penalty of 2% is applicable on outstanding loan amount, if you prepay the loan before half the loan tenure.

While filing up the forms make sure you complete all the required fields, because it is not like private banks where they will call you and ask for the missing information. Your application will get delayed unnecessarily.

Once you submit your application at Branch, it will be forwarded to RACPC of your city for processing. If you have any queries at any step feel free to ask me.

regards
RP

Originally Posted by 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?

[kumar7]

Originally Posted by amanmalhotra

Well, in my case, I just went to an SBI branch, and filled the application form in front of them. They rectified mistakes made by me and sent it across to RACPC.
Regarding the preclosure/prepayment, the branch which was putting up my loan case, the loan officer there told me that in case you are paying money from your own pocket, then there are no charges for preclosure/prepayment.
But when I went to RACPC and asked the same question, the lady there told me that it will be charged at 2% of amount being paid for preclosure/prepayment if payment being made during <50% of loan tenure being done. So, for a 5 year loan, if I am making a prepayment during the initial 2.5 years, then I would be charged 2% of the money that I am paying for prepayment. After 2.5 years there is no charge.

Originally Posted by rammishra

Hi Kumar,
It is better to go for as less loan period as you can afford. Because if you have 07 Years loan period, you will end up paying more interest on you loan.

Regarding SBI Loan, I just completed loan formalities from SBI at mumbai and got my cheque in hand.SBI loan is best option any day if you are ready to do little bit of running around and have little time and patience.

SBI has a promotional offer going on till 30th sep wherein:

1. There is no processing fee charged.
2. 1st year loan will be at 8% PA
3. 2 & 3 Year Loan will be at 10% PA
4. remaining will be at floating rate(Market rate) i.e today it is 11.75 so SBI will charge .5 % less for 4,5 year i.e. 11.25%
5. prepayment penalty of 2% is applicable on outstanding loan amount, if you prepay the loan before half the loan tenure.

While filing up the forms make sure you complete all the required fields, because it is not like private banks where they will call you and ask for the missing information. Your application will get delayed unnecessarily.

Once you submit your application at Branch, it will be forwarded to RACPC of your city for processing. If you have any queries at any step feel free to ask me.

regards
RP

If half tenure is the minimum period for repayment with no charges then it makes sense to for a loan of 5yrs. I wanted the saving a/c with branch close to my residence but as I am processing car loan from branch which is adjacent to office so thinking to open saving a/c here itself so that they can co-ordinate within themselves and expedite the process. Later I will apply to transfer the a/c to branch which is close to my residence.

When I inquired more about saving a/c then there were many shocking updates I got -

• To open saving a/c it takes 10 days!! (Real sarkari kaam it looks)
• Usually everyone goes for ECS but here they charging for this service??
• The explanation I got is all banks charge however I never came across this rule with any private bank.
• Again if you go for debit card then also you need to pay maintenance charges. So I decided I don't need there overseas pack god know how much they charge me if I do any transaction with it in any country

I am almost ready with all documents and tomorrow going for submission.

Query
Still have a doubt about paying the EMI ? Which option should I for and will there be any charges for it?
[Last time when I should the application to lady who going to accept the application she ticked on SI option which I think means ECS]

[balajeshi]

Hi All ... my first words on Team-BHP happy to be in .

One more soul here waiting for the SBI loan , i have a salary account with SBI for the past five years . And have applied for the loan on last friday 21st , i was informed by the clerk that i'll be getting response by this week wednesday or thursday still waiting ....

Hope it happens soon as i am planning to book the car only if i get a loan from SBI ..

[kumar7]

Originally Posted by balajeshi

Hi All ... my first words on Team-BHP happy to be in .

One more soul here waiting for the SBI loan , i have a salary account with SBI for the past five years . And have applied for the loan on last friday 21st , i was informed by the clerk that i'll be getting response by this week wednesday or thursday still waiting ....

Hope it happens soon as i am planning to book the car only if i get a loan from SBI ..

I understand you are having salary a/c with them but how come they going to approve your loan without invoice,receipts which shows that you paid your contribution!

Not sure if its like homeloan where you can get pre-approved loan?

[MileCruncher]

Originally Posted by balajeshi

Hi All ... my first words on Team-BHP happy to be in .

One more soul here waiting for the SBI loan , i have a salary account with SBI for the past five years . And have applied for the loan on last friday 21st , i was informed by the clerk that i'll be getting response by this week wednesday or thursday still waiting ....

Hope it happens soon as i am planning to book the car only if i get a loan from SBI ..

One needs to submit the Proforma Invoice and then write how much loan you are asking for. One can pay their contribution to the dealer after the loan is approved as without margin money receipt the disbursement will not happen.

Btw expect another week. It generally takes about 15 working days to get the loan approved by SBI. Your wait has just started.

[balajeshi]

Actually i have taken a personal loan[for downpayment] through them on the corporate tie up with SBI , so i got the amount within 2 days credited into my account.So thought that car loan processing would be done within a week as my Address and office verification is done.

But as all other experience in the forum you never know how much time it'll take for the SBI so i am prepared for it .Will drop by my branch tommorrow to check on the status with the clerk [Probably ask him to check with central branch].

Punto is making me restless planning to book it as soon as possible.

[MileCruncher]

Originally Posted by balajeshi

Actually i have taken a personal loan[for downpayment] through them on the corporate tie up with SBI , so i got the amount within 2 days credited into my account.So thought that car loan processing would be done within a week as my Address and office verification is done.

But as all other experience in the forum you never know how much time it'll take for the SBI so i am prepared for it .Will drop by my branch tommorrow to check on the status with the clerk [Probably ask him to check with central branch].

Punto is making me restless planning to book it as soon as possible.

I'm not sure having already taken a Personal Loan from them, they will give you another loan.

[balajeshi]

I Have calculated the same with the clerk who helped in filling the form before applying ,he said i should be fine as the Personal loan is around 1 Lakh.

Still you never know as you said[It is SBI ,they'll reject for weirdest of reasons] ,i will go to the branch check it out on any information they have from RACPC.

[balajeshi]

I have called the Clerk [thought they won't pick the call ] but after some 5 tries they picked it and spoke to him ,he has send my application to the RACPC yesterday only [as he was on leave 2 days] , so my count has officially started from today.

And moreover as you said ,he has told the other person who sanctions the personal loan to hold it for 1 more week i.e till the car loan gets approved .But he didn't bother to hold it.

Now I leave it to the person who is processing my car loan.keeping my fingers crossed. [hope it gets approved as it'll be my first 4 wheeler purchase].

[Mr_Bean]

Guys I am looking for a used car loan. Appreciate your help on this.

I have applied for HDFC used car loan, yet to know their interest.
May I know the process involved in getting a loan? What is the bank's term car evaluation? Do they check the condition of the car or what?

[Ferrari1976]

I was told that there is a SBI Life policy that we have to buy to avail the SBI EZee Car Loan. Is this true? What is the total damage approximately?

Is this a way to recover the processing fees?

[MileCruncher]

Originally Posted by Ferrari1976

I was told that there is a SBI Life policy that we have to buy to avail the SBI EZee Car Loan. Is this true? What is the total damage approximately?

Is this a way to recover the processing fees?

The SBI Life Policy is compulsory and will cost you depending upon your loan amount. Its actually a loan protection policy. I would rather pay a small amount and protect my next of kin if anything untoward happens to me.

[Ferrari1976]

Thanks MileCruncher. This helps!