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

[wildon]

I'm zeroing on 3 banks for taking a carloan of 4 lakhs for 4 years

1. Bank of India
2. SBI
3. HDFC

1. Bank of India:-

Interest rate @10.25 Variable.
Processing/handling fees:
a)Loans upto Rs.25,000/- - one time Rs.1,000/-
b)Loans above Rs.25,000/- upto Rs.25 lacs – one time 1.10% of loan amount – Min.Rs.1,500/- & Max. Rs.5,000/-
Guarantor is a Must and the guarantor must sumit all the details/document which applicant asked to submit.

No pre-closure charges.

Processing time 3 weeks

2. SBI:-

Interest rate @10% Fixed for the first year and after that its as per the interest rate on that particular year/month.(at present its 11.50% -12.00%)

No precessing fee, pre-closure charges. Offer till Sep'09

Processing time: 8 days


3. HDFC:-

Interest rate 11.75% Variable
1EMI in advance
Processing fee 1lacs to 2.5 lacs - 2000/--
2.5 lacs to 4 lacs -3000/--
4 lacs and above 3500/-

Stamp charges 0.1% on loan amount & 1000/- towards service charges.

Pre- closure charges

6 months to 12 months - 6% on principle outstanding
13 months to 24 months- 5% on principle outstanding
25 months and above 3% on principle outstanding

Please suggest and i would like to know any other banks which i can look into.

[bobdon]

Originally Posted by wildon

I'm zeroing on 3 banks for taking a carloan of 4 lakhs for 4 years


2. SBI:-

Interest rate @10% Fixed for the first year and after that its as per the interest rate on that particular year/month.(at present its 11.50% -12.00%)

No precessing fee, pre-closure charges. Offer till Sep'09

Processing time: 8 days

Please suggest and i would like to know any other banks which i can look into.

Wildon -
Not sure about what suggestions you are looking at, but the processing time taken by SBI is ANYTHING but 8 days. RACPC,Bangalore ensures that it takes you almost a month to get the loan approved.
My personal experience with the SBI loan(got mine approved almost 2 months back)has been OK.
(1)The verification officer came to my house at 6:00 am on a Sunday morning.
(2)After that I had to call up the dealer on a daily basis to ensure about the status

I also have home loans approved by SBI - so I expected this

Plus points being -
(1)The interest rates are pretty competitive vis-a-vis the other 2 banks that you have narrowed down on?
(2)SBI Brand name ?

Bottom-line :
If you are looking for decent interest rates and are willing to be patient with SBI, go for it !

Peace,
B

[wildon]

Originally Posted by bobdon

(1)The verification officer came to my house at 6:00 am on a Sunday morning.

I'm not in a hurry so i can wait..
I'll keep a Special notice board ready for him if he comes at that time

[Gansan]

If you are comfortable with the guarantor part, go with BOI. I personally do not like to go for such an obligation to anyone. They also have to furnish all the details/documents that the applicant does. Thus I am hesitating to take their loan, even though my salary account is with them.

As a customer of HDFC Bank, I have been offered a pre-approved car loan by them too. Even though the interest is 1% higher, they don't need a guarantor and that makes them more attractive for me.

[anupam00]

I would recommend go for SBI.

It is most ethical bank,altough it is tougher to get a loan from SBI compare to other banks as they require more documents but the dealing in SBI are fair.

Thanks
Anupam00

[ashthedivx]

As always Private banks offers much more convenience to customers. Not sure why the govt. psu banks do not look out for a convenient customer way rather then same old customer harassing stories.

I would suggest to go for SBI if you ain't in hurry, else go with HDFC.

PS: Doe guarantor needs to have a mandatory account with BOI ??

[muralisk]

Looking at the details, I would go with SBI. The deal looks good, even though they might be slow with the paper work.

[pedrolourenco]

Go with SBI or BOI. You will end up spending more with HDFC. Also with SBI or BOI if you default on a couple of installments, they wont impound the car. They will recalculate the interest and ask you to pay. Once you do it, it's back to normal. Inital formalities with PSU Banks are a bit cumbersome but then you can relax for the rest of your tenure. This is not the case with private banks.

[Gansan]

Originally Posted by ashthedivx

PS: Doe guarantor needs to have a mandatory account with BOI ??

No, it is not necessary. But a guarantor has to comply with all the formalities the applicant does - proof of income, ID & address, passport size photos etc.

I am aware I will pay more with HDFC bank, but not having to go to anyone for any obligation is worth it in our opinion. I personally would not like to stand guarantee for anyone, so it is only fair that I don't place some one else in a situation that they don't really like, but can't refuse either!

I have negotiated with HDFC bank and if I take a Suraksha policy(one time premium Rs 5500 approx),the emi per lac for a 5 year loan is Rs 2176 as compared to Rs 2137 of BOI. The preclosure charges may be stiffer, but preclosure is only a remote possibility. Repayment will be through ECS.

[predatorwheelz]

Originally Posted by pedrolourenco

Go with SBI or BOI. You will end up spending more with HDFC. Also with SBI or BOI if you default on a couple of installments, they wont impound the car. They will recalculate the interest and ask you to pay. Once you do it, it's back to normal. Inital formalities with PSU Banks are a bit cumbersome but then you can relax for the rest of your tenure. This is not the case with private banks.

I support the highlighted points, despite being a banker myself and that too in a private bank! If you have time for a lengthy sanction process to go through, it definitely makes more sense to go with SBI.

The repayment process is much more relaxed and transparent. In addition, SBI has one more benefit. Not put down on paper, but it definitely exists:

Suppose you have taken a loan of 4 lakhs for 4 years. At the end of 2nd year, you suddenly receive a bonus of INR 1 lakh from your employer. You can choose to pay this money directly into your loan a/c (over and above the regular EMI). Inform this to SBI, and they will recalculate your EMI amount. Such excess payment can be made whenever you want over the lifetime of the loan, and the recalculation will be done every time.

One more suggestion.. Try Tata Capital. These guys are new in the car loans market and are offering some really good deals. Just make an online application and see what they can offer you.

[pedrolourenco]

Originally Posted by predatorwheelz

In addition, SBI has one more benefit. Not put down on paper, but it definitely exists:
Suppose you have taken a loan of 4 lakhs for 4 years. At the end of 2nd year, you suddenly receive a bonus of INR 1 lakh from your employer. You can choose to pay this money directly into your loan a/c (over and above the regular EMI). Inform this to SBI, and they will recalculate your EMI amount. Such excess payment can be made whenever you want over the lifetime of the loan, and the recalculation will be done every time.

Yea I forgot that one. In fact I used this very facility for my housing loan and educational loan from Corporation Bank.

[kannan666]

I had actually taken one from Citibank and found the experience to be good. Yes, I did end up paying 1% more on the interest rate but since the dealer (whom I knew personally) got everything done for me without me even having to visit the dealership except to take delivery of the new vehicle, I went ahead as it was a lot lesser hassles for me. However, being a finance man myself, I too fully agree with the views expressed by Pedro here.

[wildon]

looks like the preferred choice of many is for SBI and at present they have an offer too.

Sure i will check the TATA Capital too meantime.

Thanks for all your valuable reply

[HappyWheels]

Thanks for the details guys!

Going thru the same process.

Looking at either SBI or AXIS.

Also have to meet the Tata Motor Finance team and will check with them their rates.

Lets see where this is heading to.

[Gansan]

I have finally zeroed in on a brand new Alto LXi and decided to buy it without loan. (This was also partly responsible for the Alto decision). I did not want to get a guarantor for the BOI loan. The HDFC bank on the other hand offered a 60 month loan @ 11.25% with a monthly emi/lac of Rs 2187 but with an initial pay out of Rs 9440 (processing fee Rs 3120 + suraksha policy Rs 6320). They did not require a guarantor but stipulated a preclosure penalty of 5% on outstanding principal. As everyone knows, the emi payments in the initial year or two will be predominantly towards interest, and if I decide to foreclose the loan after two years, I may still pay 5% on almost the original loan amount.

So I have literally scraped the bottom of the barrel and paid out the full 3 Lacs for booking the car, but it sure was a great feeling to see the words "not applicable" in the hypothecation column of the booking form!