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Old 11th December 2016, 07:19   #91
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Default Re: SBI Car Loan - My Experience

Friends,
Is it ok to close a car loan considering the present demonetization?
I was saving part of my salary for this purpose, not any other source of income.
I ask this question just because there rumors of loan write off or extension of repayment window. I think it could be just rumours, but just some wishful thinking.
Is it a good idea to hold on until next few months and decide on what new measures are introduced.?
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Old 11th December 2016, 07:40   #92
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Default Re: SBI Car Loan - My Experience

Any loan moratoriums or write offs are going to be for farmers or the urban poor, not for anybody prosperous enough to own a car.

If you can pay a car loan off in advance and especially if there is no prepayment or early closure penalty go for it. You save on interest payment, there's no tax breaks for car loans (unlike house loans) so absolutely a good thing to do if you have money available.
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Old 3rd March 2017, 22:31   #93
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Exclamation Re: SBI Car Loan - My Experience

Dear all, need some very urgent advise.

I am taking the 4 wheeler loan from the SBI, via the dealer agent at Renault. Per my CIBIL score of 813, I assume that the ROI will be 8.75% in place of 9.25%.
  1. I want to have the ECS setup with the SBI as I have a savings account with them. My intention is to transfer the required money from my HDFC Salary Account to the SBI and then have the monthly EMI amount deducted from the SBI Account. But while filling up the form, the agent did not ask for SBI account details and told me that it will be taken care during agreement. My form 16s are from the HDFC account and I presume he will put the ECS from the HDFC account directly and not the SBI. How to be sure that right from Day 1, the ECS is always deducted from the SBI and not HDFC?
  2. The agent did not confirm the period though I am happy to have the duration for 60 months and not 84. How do I make sure beforehand with regards to this? Though I communicated my intention verbally to the agent, but I want to be very sure.
  3. How do I make sure that I am getting loan interest calculated at the rate of 8.75 and not 9.25?
  4. The Agent asked for 8 blank cheque for the loan disbursal. He informs that this is as per the bank's policy, which somehow does not sound logical to me. Is there any way to come out of those blank cheque funda? My understanding is that these cheques are used for security. But the account that I intend to be using for this loan will have minimal amount just for the loan clearance and a bit extra. So how does issuing cheque with X amount provide any security to the bank? Moreover I am not too sure about the later fate of the cheque and I do not possess any SBI Cheque book.
  5. The usual salary period is the very first week of the month (either last working day of current month or first working day of next month). In such a scenario, I am confident in transferring the required amount to the SBI by the 5th. Considering the aspect that at times it takes around 2 days for the amount to be credited into the account (leaves, weekends etc), can I have my own deduction date defined with the SBI, say the 10th of every month? If this is possible, please advise how?

As I am not very confident into the loan aspects, thus this huge set of questionnaire. Please excuse me for being so naive, but money lost is not money earned. Please help me with your expert and guiding response as always.
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Old 4th March 2017, 05:51   #94
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Default Re: SBI Car Loan - My Experience

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Originally Posted by Majumdarda View Post
Dear all, need some very urgent advise...is not money earned. Please help me with your expert and guiding response as always.
For all your questions, I would suggest only one simple answer - Just visit the SBI branch where your dealer is tied up with the SBI, ensure all these questions with branch manager.

You cannot have your own custom date; for ECS there will be usually 3 different dates every month that you can choose, say like, 5, 10 & 15 or 5, 15 & 25 something like that & bank takes your consent before choosing them.

Use SBI online calculator to check if your EMI falls for the said amount, 60 months & 8.75% interest.

Blank cheques are necessary, but just 1 or 2 that's all; 8 are not required.

From my personal experience, walk to SBI branch that allots car loan for you, their forms are absolutely easy to fill out, their staffs are much much politer (not to the extent of HDFC etc) & all you got to fill out are...borrower, co-borrower, income, co-borrower income, form 29 X 2, form 30 X 2 (or form 28 not sure), assets if any & finally the quotation that's all.
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Old 4th March 2017, 09:25   #95
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Default Re: SBI Car Loan - My Experience

Hi Aargee,
I had visited the SBI branch and my intention was to take the loan from them. But there it was another nightmare as it's just one guy since 2013, who will only share details as was prevent at his hiring time. In short I wasted 90 minutes. Thus I was forced to approach via the agent. It seems that the guy seating at the bank, wants to be approached via SBI agents only, as at his desk, it's their flock encircling him.
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Old 4th March 2017, 13:08   #96
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Default Re: SBI Car Loan - My Experience

Find out if there is a SBI personal banking branch in your city. Use that and there's more attention paid to you. Or you can apply for most of the paperwork online. https://www.sbi.co.in/portal/web/per...ar-loan-scheme

If you can help it, never use agents
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Old 4th March 2017, 13:30   #97
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Originally Posted by Majumdarda View Post
I had visited the SBI branch and my intention was to take the loan from them...SBI agents only, as at his desk, it's their flock encircling him.
I can understand your situation; in such a case, what you should do is, approach a larger SBI bank nearest to your locality. For instance, if you're in Mangadewadi & you don't get a good response, despite you're in that locality, visit the bigger branch in Kothrud & approach the manager directly & tell them casually you're forced to come here since the branch office near your house isn't responding well.

Also remember, not all SBI branches will be eager to process car loans well because bank cannot do all the formalities themselves & will needs a representative from each surrounding dealer visiting/at the branch which they look forward. In your case you're probably calling him an agent, which you need to find out.

So the point is, approach branch manager in a bigger branch, tell them casually you're forced to come here since the response is poor at your home branch & then you can avoid the broker/agent/middlemen.
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Old 6th March 2017, 13:51   #98
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Originally Posted by aargee View Post
...
My SBI Loan is under process from the Chinchwad branch now and just completed the office verification. I have been informed that after the verification is completed, I would be called at the bank for signing the agreement.

I had mentioned to my SA to inform me the VIN details, Chassis and Engine number before I sign on the agreement, to which he had agreed.

What is the official process? Am I not supposed to get the details before hand and then sign the agreement or do I sign first and then wait for details from the dealer? What I have been informed that post the booking amount paid, there is a request made to the manufacturer to allot the car in my name and the above details can be shared before hand.

Sorry to be asking the queries here, but frankly I prefer the authentic answers from the Team BHP fraternity rather than the verbal commitments and statements at the banks / dealers etc.
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Old 6th March 2017, 14:39   #99
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Default Re: SBI Car Loan - My Experience

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Originally Posted by Majumdarda View Post
What is the official process?
1. I hope you've given the quotation from the dealer to SBI, if not, then do that now. Once the quotation is submitted, it cannot be changed, unless you're willing to reapply the loan (SBI discretion here)
2. Based on quotation, SBI approves upto 85% of the invoice value; this means, if car ex-showroom is 900000 & tax is 90000 & insurance is 10000, you'll be approved a max of 935000 & the remaining has to be paid by you in form of down-payment/booking amount.
3. Incase you're paying more than 165000, say you're paying 200000, SBI will approve 900000. The dealer invoice/receipt for your payment will determine the balance funds to be released by SBI
4. Once the payment is received by dealer, remaining things such as insurance & RTO formalities will proceed.
5. So you'll get to know whatever details (I'm assuming your EMI) will be known only at step 3 & the document signature that will happen at SBI will be after step 1. Unless you have your invoice of your booking amount/down-payment, you'll not know how much money should be disbursed based on which EMI is calculated.

I hope you got some insight. Pls let us know otherwise. Be assured with SBI that they've some ethics & lowest ROI in the nation. I've also been told that there will be a copy of signed document handed over to us, but not sure until I experience them myself.

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Originally Posted by Majumdarda View Post
What I have been informed that post the booking amount paid, there is a request made to the manufacturer to allot the car in my name and the above details can be shared before hand
I didn't quite get this well
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Old 6th March 2017, 22:12   #100
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Default Re: SBI Car Loan - My Experience

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Originally Posted by aargee View Post
...
Thank you very much sir. That now gives me a better understanding. Off course the quotation has been submitted to the bank. Likewise today there was a verification visit at my office, post which I received a call informing that I am eligible for 8.75% ROI as my CIBIL is above 750 (790 as they tell me).The SA had also assured me that even though banks advise 85% on road financing, as they have a good rapport with the bank and if I maintain a decent CIBIL, then 90% on road financing is possible. [I would stick to this promise from the SA]

I had made also instructed that the EMIs should be from my SBI account and not the HDFC. Was informed that even for that I need to submit 6 cheques from the HDFC account, for security purpose. When I informed that the car would anyways remain hypotheticated in the bank's name, then why do you need bank cheques, no satisfactory response was provided Moreover its quite surprising that even though they had agreed to have the EMIs deducted from the SBI, still they have not noted down my Account number. Will they get a dream now

Anyways, waiting for the updated story tomorrow, which will have clarification on the following points.
  • How much On Road financing is SBI ready to commit?
  • Receiving the VIN, Engine and Chassis number from the dealer.
  • Why bank is asking for blank checques as security, even though hypothecation would be there?
  • Which account do the SBI actually wish to enroll for the ECS (SBI/HDFC)

With regards to the I didn't quite get this well, the SA had informed me the following as I had insisted on inspection beforehand.

"After I pay the booking amount, they would pass on my details to the manufacturer. From there a car would be allocated into my name. The manufacturer then communicates the details back to the respective dealer, which mainly consists of the VIN, Engine and Chassis number. I, as a customer would therefore be able to inspect the car once it reaches the yard or verify with the VIN details and once I am satisfied, I can then instruct the bank for the disbursal of the amount."

A busy day apparently tomorrow, which will decide whether I will make or break the deal. I will update the thread accordingly. Nevertheless, hard lessons learnt.
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Old 7th March 2017, 09:11   #101
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Default Re: SBI Car Loan - My Experience

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Originally Posted by Majumdarda View Post
if I maintain a decent CIBIL, then 90% on road financing is possible. [I would stick to this promise from the SA]
I doubt this, anyway, few things are possible at the sole discretion of SBI branch manager, so I'll leave open on this one.

Quote:
Originally Posted by Majumdarda View Post
Was informed that even for that I need...no satisfactory response was provided
Ideally the cheque is collected to track the account number & there on towards ECS. But in your case, your ECS is from SBI & assuming you've a salaried S/B account with HDFC, then, I'm not sure why they need CANCELLED cheque (not blank) from HDFC when you must have provided the last 6 months bank statement to them which will show the credit of your paycheck

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Originally Posted by Majumdarda View Post
Moreover its quite surprising...dream now
That's the purpose for collecting the blank cheque to initiate the ECS from the A/C, but then it had to be SBI, not sure why its HDFC.

Quote:
Originally Posted by Majumdarda View Post
Why bank is asking for blank checques as security, even though hypothecation would be there?
Good question actually; ideally 1 or 2 is sufficient to trace the a/c number, 6, don't know why because like you said, the asset is already co-joined owned by them, so, no need for cheque. Let me see if I can find this answer for you.

Quote:
Originally Posted by Majumdarda View Post
After I pay the booking amount, they would pass on my details to the manufacturer. From there a car would be allocated into my name. The manufacturer then communicates the details back to the respective dealer, which mainly consists of the VIN, Engine and Chassis number. I, as a customer would therefore be able to inspect the car once it reaches the yard or verify with the VIN details and once I am satisfied, I can then instruct the bank for the disbursal of the amount
May be true & probably been a process in recent times by manufacturer (assuming your car is from Maruti for S-Crosss etc) because many jokers pay premium to jump the queue to buy the car faster. May be!

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Originally Posted by Majumdarda View Post
Nevertheless, hard lessons learnt.
Double
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Old 23rd March 2017, 14:01   #102
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A small update :-

ROI for me is 8.75%, floating second year onwards, with 100% financing available. For more details, please read on.

Per SBI's new directive, they are expected to provide 100% on road car loan, which would cover the following.

- Exshowroom price
- Insurance
- RTO expenses

Below would not be covered for loan

- Extended Warranty
- Accessories.

With regards to my case, the booking amount was ₹5000 and the extended warranty was ₹5800. Price of accessories I undertook was ₹5700.

For the remaining, that is Exshowroom and RTO, I received 100% loan coverage. Insurance was paid by self.

SBI takes Account Payee 7 cheques. One will be for the processing charges (which is 1000 odd) and six for the purpose of loan security. The bank would give you proper stamped acknowledgement receipt for this, with the cheque numbers mentioned.

SBI also took ₹700 as stamp duty charges which needs to be paid in cash. Processing fees and Stamp duty charges are loan amount dependent.

If you have a SBI account, through which you want the EMI to be deducted, then the same needs to mentioned at the time of signing and a separate form needs to be signed. No extra charges for opting to this.

Also one has the option to specify his own EMI date. The same needs to be filled in at the time of signing the documents.

There is no prepayment or part payment charges levied after loan disbursal. I was even informed that I need not wait for one year. This sounded good.

One can scan all the signed documents before submitting to the bank official and CamScanner helped me a lot.

*** I intentionally did not stress much on the extended warranty aspect as it was already taken care with the booking amount.

With regards to document, the following were submitted:-

Aadhar card - address proof
Bsnl landline bill - address proof
2 past year Form 16s
3 past months salary statements
Existing loan statement if any
Pan card
Employment letter

Observation :-

The entire procedure is butter smooth. But the main hindrance is the non-availability of updated information with the concerned staff and their sense of feeling pride/ego. Thanks to the higher management who thinks otherwise and thus the renewed sense of confidence.

Yes, I SBIed the loan !!!
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Old 23rd March 2017, 14:35   #103
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Default Re: SBI Car Loan - My Experience

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Originally Posted by Majumdarda View Post
Observation :-
But the main hindrance is the non-availability of updated information with the concerned staff and their sense of feeling pride/ego. Thanks to the higher management who thinks otherwise and thus the renewed sense of confidence.

Yes, I SBIed the loan !!!
Adding my experience post loan disbursement.

Loan taken on 28/12/2017 @9.25 %
Loan rates revised by banks @8.75% on 29/12/2017

I was refused this reduction as my loan had been processed and only after completion of 1 year I would be eligible for the rate cut. All this for the difference of 1 day. I requested SBI Bank Swastik park Chembur Mumbai branch, for the same and but I was denied. Anyways I accepted that it was my mistake to not study the market first hand.

I requested them for a repayment schedule and they straightaway refused that this cannot be given to car loans as it increases their work load hassle.

Now the real problems start.

The January EMI was not taken in time and I got repeated SMS messages to pay my loan, despite the fact that I had given them 7 cheques plus NACH ECS form duly filled. I repeatedly called them but none of my mobile calls were picked up and I had to go to the branch all the way to clarify. The first EMI got late and thus it affects my cibil rating for no fault of mine.

The shock came in February when suddenly they deducted some other persons EMI from my account, I had to run to the bank leaving my work as again no one was picking up the phone calls. They took 10 days of repeated calling and visiting the branch and finally they accepted the mistake. BUT, the EMI which was deducted was much higher than my EMI and they said they cannot revert back as it takes a lot of "their" time and procedures to do so.

The second shock came when my own EMI was also deducted in the same month despite the manager telling me it will be adjusted but it did not and again the February EMI was deducted 8 days after my EMI due date, I got SMS messages stating that I am defaulting my EMI date, this adversely and seriously affects my cibil rating.

They again told me that the EMI which was taken by mistake will be deducted from my overall loan amount, which I interpret as fraud as they cannot take advance EMI without my consent.

In the month of March my EMI has been deducted through ecs on the 15th, whereas my ecs date was supposed to be 28th of every month, so now I have to either followup with them to correct the date or make provisions before hand adjusting my other finances for the following months.

All this is my story of the SBI bank Swastik Park branch Chembur.

Last edited by The Great : 23rd March 2017 at 14:39.
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Old 23rd March 2017, 15:53   #104
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Default Re: SBI Car Loan - My Experience

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Originally Posted by Majumdarda View Post
SBI also took ₹700 as stamp duty charges which needs to be paid in cash
For us this was Rs 100 in cash

Quote:
Originally Posted by Majumdarda View Post
Also one has the option to specify his own EMI date
Yes, but there're only 3 choices, 1, 5 or 10th of every month

Quote:
Originally Posted by Majumdarda View Post
For the remaining, that is Exshowroom and RTO, I received 100% loan coverage. Insurance was paid by self
Basically, SBI offers 85% of loan amount of OTR price of the vehicle. So in your case, probably the insurance + booking amount + extended warranty + accessories might've fallen to 15% or more

BTW, I SBIed too

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Loan rates revised by banks @8.75% on 29/12/2017
2016?
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Old 23rd March 2017, 16:20   #105
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2016?
Yes Sir 2016 sorry typo

Also I was given the option for NACH ECS as 15/22/28 of every month. Apparently previously there was a different format for ecs and now since the introduction of NACH there have been a few changes.
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