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Old 10th September 2013, 16:05   #91
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Default Re: Pre-Payments and Re-loan

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Originally Posted by kailashnj View Post
Hi All,

I need your help in the subject of pre-payment of the car loan and taking it again.

Scenario - I have sold my old car which was financed by HDFC Bank. Went to the bank to enquire the actual payment that I need to make to close the loan and also take a new loan. The Asst Manager informed me that if you take the loan again from HDFC Bank then I will not have to pay the complete 5% prepayment penalty instead something like 1.5% only.

He then told me that he will revert as to complete this he needs to take some approval from his superiors. I was really happy and asked him what is the Rate of Interest that I will get and other stuff. He said he will get back to me.

Now I wanted to know if anything like this does happen and did any one get a wavier in the prepayment charges as mentioned by the Asst Manager. Kindly confirm.

I am still awaiting his call to give me all the details. I will wait till tomorrow before I meet him again and remind him his words.

Regards,
Kailash
5% pre-payment penalty is a daylight robbery. It should not be more than 1-2%. Please check the loan offer document.

Please go with nationalized bank for the new loan. One time pain is better than everyday hassles. SBH had 10.2% with zero processing fee offer last month. Your new car dealer must be having a tie-up with one of the State Bank branches nearby.
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Old 10th September 2013, 16:11   #92
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Default Re: Foreclosing an Auto loan - why the circus?

Hi All,

As some of you would know, I have sold of my Nano to my cousin. She's issued me a cheque that I would be issuing to the Tata Motors Finance. What sets of documents do I need to give to the Tata Motors Finance guys to get the NOC? Would it be an immediate process or how? I know, it may not be immediate and hence, have asked the cousin not to take it out or drive long distances (technically, as long as the car is in my name, I am still the owner and hence, responsible for any accidents).

Last edited by amtak : 10th September 2013 at 16:13.
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Old 10th September 2013, 21:24   #93
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Default Re: Pre-Payments and Re-loan

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Originally Posted by rohan_iitr View Post
First of all, how did you manage to sell the car without closing the loan ? Isn't the car hypothecated to the bank during the loan tenure ?

And if I may ask, why are you buying and selling cars so frequently even though you are buying with loans ?

No offense meant with the above questions, I'm just trying to understand you situation.

Rohan
Hi Rohan,

To answer your questions, the car is Hypothecated to HDFC Bank and the buyer has provided me with the token amount and has promised the full payment in few days. I will pay off the loan once the buyer confirms the final date of payment.

I am selling this car as I had bought it second hand and realize that its not something that I am enjoying. This was my first pre-used car and it started giving me issues with frequent visit to the ASC. Though all things have been sorted now, I lost my interest in the car. Now I have decided to buy a brand new car. Hence it seems that I am buying and selling the car frequently.

I will update the thread tomorrow when I have the notification from the AM from HDFC bank. I am though still inclined to take the loan from Nationalised bank which will surely solve the prepayment penalty issue and I might not even let the loan last for its entire tenure, by making some additional part payments every year. Hope this solve's your question.

Kailash
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Old 20th November 2013, 16:20   #94
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Default Re: Foreclosing an Auto loan - why the circus?

Hello,
I want to foreclose my car loan next month, remaining amount is 105000 , but I dont have lump sum money in my account to fullfill the task. I have to close this loan on an urgent basis due to certain personal matters. So I am thinking to pay off the loan by using one of the following combination.

1. pay 50000 by cash and the rest by cheque from my account.
2.or 50000 by outstation DD (from my fathers account) and the rest by my cheque.
3. cheque(outstation) from my fathers account and cheque from my account.

Please advice if any of the above options would work, or is it that the bank will accept only one transaction for this purpose, I mean the whole amount by a single cheque or single DD.
Thank you

Last edited by somu_john : 20th November 2013 at 16:21.
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Old 10th December 2013, 23:37   #95
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Default

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Originally Posted by somu_john View Post
Hello,
I want to foreclose my car loan next month, remaining amount is 105000 , but I dont have lump sum money in my account to fullfill the task. I have to close this loan on an urgent basis due to certain personal matters. So I am thinking to pay off the loan by using one of the following combination.

1. pay 50000 by cash and the rest by cheque from my account.
2.or 50000 by outstation DD (from my fathers account) and the rest by my cheque.
3. cheque(outstation) from my fathers account and cheque from my account.

Please advice if any of the above options would work, or is it that the bank will accept only one transaction for this purpose, I mean the whole amount by a single cheque or single DD.
Thank you
Neft your money to a single local account and pay by cheque or dd.
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Old 10th December 2013, 23:40   #96
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Default Re: Foreclosing an Auto loan - why the circus?

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Originally Posted by somu_john View Post
Hello,
I want to foreclose my car loan next month, remaining amount is 105000 ,
Please check with the bank once because they will start the closing formalities only when the cheque gets cleared. You could lose a couple of days in it if it is an outstation cheque.

Even I did a preclosure on about 1.2 lakhs. But for this precise reason, I paid the remaining amount as cash.
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Old 11th December 2013, 00:00   #97
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Default Re: Foreclosing an Auto loan - why the circus?

The best home loans and car loans are available from State Bank of India and the days of circus are over. The loans are sanctioned and disbursed the same day. You can foreclose a loan the day you want without any hassle ,take an NOC from the branch the very same day and head towards the RTO office for deletion of hypothecation. I have availed car loans from State Bank of India and the maximum time they have taken is two hours for disbursing from the time of receiving my application. If any fellow Bhpian is interested, I can pass on the reference and branch details. I am certain you will not come out of the bank disappointed.
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Old 11th December 2013, 17:34   #98
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Default Re: Foreclosing an Auto loan - why the circus?

Quote:
Originally Posted by anmolbedi View Post
Neft your money to a single local account and pay by cheque or dd.
Quote:
Originally Posted by satan's_valet View Post
Please check with the bank once because they will start the closing formalities only when the cheque gets cleared. You could lose a couple of days in it if it is an outstation cheque.

Even I did a preclosure on about 1.2 lakhs. But for this precise reason, I paid the remaining amount as cash.
Thank you for your replys @anmolbedi and satan's_valet, What I did was I neft the whole amount to my account as Anmol suggested, and gave a cheque for the total amount.

Now the process is complete, The NOC was despatched in three days time and I received it at my residence on the 8th day.
Today I went to the Sheikh Sarai RTO office and submitted the NOC for removal of Hypothecation,

The complete process I went through at the RTO is as follows:

I reached around 10 am got my noc and documents (1 copy each of address proof, pollution certificate and insurance) attested by a notary who sits in the front of the RTO building (Cost 60 + charges for photocopies). Was then directed by them to Room No-322 on third floor, went to counter no 4 submitted the noc+original RC+documents paid Rs 150 as fees. Then they give you a receipt of acceptance, then move to counter no 5 (smart card fee counter), paid a sum of Rs 416 for the new RC. Again a receipt was given for the same and I was told to collect the new RC after a months time from counter no 6 or from a counter that is outside Room No322. I was out of the RTO before 11.00 am.

Total Time consumed: less than an Hour.
Total cost Incurred: Rs. 626/-
Hope these details help somebody in the future.

Last edited by somu_john : 11th December 2013 at 17:38.
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Old 11th March 2014, 12:35   #99
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Default Re: Foreclosing an Auto loan - why the circus?

Just did not know closure of auto loan can also be a pain!! I had taken a loan while purchasing my Palio. Now, the Palio is sold. Transfer papers signed and car delivered. Now, I need to close the loan and provide him with required documentation for HP cancellation.

I call HDFC bank last week to find out the process. They say, I need to intimate them 1 week in advance. I was like what the hell! What do they need 1 week for? Are they going to launch a rocket with my name etched? I then say, okay I am Intimating you now. She says no sir, you have to intimate at the branch. I was again like what the hell! I then go to CMH branch that they asked me to go. I see some 8 rows with 10 people seated and waiting for their turn. My number was some 169 and the number that was being called was some 12x. I quickly pinched myself to check if I were dreaming. I wasn't. Then I checked the date to see if we have rolled back some 100 years, wasn't the case. I gave up after an hour as I had to be back at work. I then asked the security guy at the door. HE said its always like this. Asked him when is the best time. He says come in middle of week like Tue-Wed-Thu and come at 09:30HRS and wait at the door, that's the quickest. I was dumbstruck!! Today morning I ensured to be there by 09:40, waited at the entrance for the door to open (as if I were looking for a free meal). I wasn't the only one there, there were over 15-18 people by the time the door opened. Even after being so early, my number was 8 and by time I reach teller, it was 10:20AM. Here is a brief of what happened:

ME: I wasn't to close my loan account
Teller: Takes 2-3 mins, checks and tells me.... You need to intimate a week in advance and then come back and pay the amount.
ME: Why? Why cant I just close now?
Teller: No sir, the procedure is to intimate a week before. We cant do anything.
ME: Whats the logic behind this?
Teller: I don't know sir, that's the procedure.
ME: Is it to collect the additional interest by delaying a week? Why don't u take that right away and tell me how much I should pay.
Teller: No sir, that's not why the procedure is and we cant do anything.
ME: Why couldn't I intimate about closure over phone? Isnt this ridiculous that you make me come all the way here to just intimate? I also had to wait hours other day and close to 40 minutes today. <All in the top of my voice>
Teller: No sir, that's the procedure. NExt week please come sir, you come directly to me and don't wait. I will help you.
Me: That's strange, anyways, I will come directly to you and I don't have the time to wait hours for such trivial things. How much time will it take after I give the check?
Teller: 15 business days.
Me: So in total, it will be over a month including intimation right?
Teller: No sir, but that's the procedure.

I gave up and left after collecting the acknowledgement.

I have a debit card and credit card with Citibank since 2001. By far, they have been the best and the experience with HDFC clearly I can term it as the WORST! I have never ever visited Citibank office till date in last 13 years for anything and I use my cards very expensively and have had loans and other things. Everything was online/phone.

I have sold my car and HDFC procedures as they call it means the application for transfer cannot be started for atleast 1 business month. My sincere and humble feedback: If you have a choice other than HDFC, please choose it. HDFC seems to be one hundred years in the past. I will never ever use their service.

EDIT: I had foreclosed an Auto loan with SBM that I had taken for my M800 car in 2005. I just asked manager about procedure, he said you just need to fill a form. I asked if I could do it right away, he said yes and I gave a check. In 2 days after check cleared, I got a call asking to collect the papers, the post dated checks and the spare key. End of story.

Last edited by funkykar : 11th March 2014 at 12:38.
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Old 11th March 2014, 15:27   #100
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Red face Re: Foreclosing an Auto loan - why the circus?

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Originally Posted by funkykar View Post
Now, the Palio is sold. Transfer papers signed and car delivered. Now, I need to close the loan and provide him with required documentation for HP cancellation.
Funkykar,

Sad to know the frustrating experience at HDFC. The conversation actually brought a smile on my face knowing about the stone age process at the bank which is considered to be the most professional amongst the private sector banks. I had a similar experience with HDFC when I had planned to take a car loan from them for my earlier Santro. Thankfully I didnt.

BTW why was the car delivered before the actual transfer of ownership? I mean the RC change. For transferring the ownership you need to have the Hypothecation form filled (Part 2 of Form 28) & signed by the bank, isnt it? When it was not yet done, why was the car delivered? Without bank NOC transferring a hypothecated vehicle is an offence.
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Old 11th March 2014, 15:36   #101
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Default Re: Foreclosing an Auto loan - why the circus?

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Originally Posted by funkykar View Post
Just did not know closure of auto loan can also be a pain!!
It is not only a lot of hassle but after you decide to close it down that you get to know all this. They have no system of informing the customer in advance about foreclosure rules and penalties.

I am right now going through the process of applying for a new loan. HDFC does not mention anything in its application form about the rules/penalties for foreclosure. It is only on the agreement paper that they mention it in almost fine print. They are not even supposed to show it to the customer before signing. They behaved as if they were doing me a big favour by showing the penalty rates to me in advance.

And what do I find??

They would charge me 6 per cent of the principal outstanding if I close it down in less than one year. So on a loan amount of Rs 7 lakh I have to pay a penalty of Rs 40,000 if I close it down in the first year !!! In the 2nd year it is like 5 per cent or something. I found the rates ridiculous.

I said nothing doing. I will not take this loan. They said, "since madam (my wife is the applicant) is with HSBC we will make it zero penalty after the second year, as a special case." I said give it to me in black and white. They said we cannot give it to you in writing sir. You must trust HDFC Bank blah blah blah.

I showed him the door out of my office.

I think IDBI Bank has the easiest rules and prepayment/foreclosure penalties but their loan disbursement people are most unprofessional and are a pain to deal with.
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Old 11th March 2014, 15:43   #102
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Default Re: Foreclosing an Auto loan - why the circus?

@ghodlur: Car has been delivered in good faith. I do understand the probable issues and legalities that can arise. One reason why I am even more pissed with HDFC. I was supposed to do the HP cancellation and also get the Clearance Certificate (CC) done. But honestly I did not expect loan closure to be such a hassle in terms of process or as they call procedure and also the total time they need for it. I wish they were a government office, atleast by other means the work could have speeded up. I honestly have had better experiences at local RTOs in terms of process and time taken.

It is my bad that I let go of the car assuming that a brand like HDFC wouldnt take more than 2-3 days for the closure and paper work. I had to do this as I was dependant on the sell money to clear the loan.

When I took the loan, I had zero hassles! The nationalized banks which are perceived to take more time is far better than HDFC.

If HDFC is reading this: ATLEAST, provide a priority queue at your bank for the so called intimations and to reach your teller at an acceptable time. Customers may not mind paying a fee for such priority service like they do in popular temples like Tirupathi

Last edited by funkykar : 11th March 2014 at 15:47.
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Old 11th March 2014, 16:33   #103
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Red face Re: Foreclosing an Auto loan - why the circus?

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Originally Posted by funkykar View Post
One reason why I am even more pissed with HDFC. I was supposed to do the HP cancellation and also get the Clearance Certificate (CC) done. But honestly I did not expect loan closure to be such a hassle in terms of process or as they call procedure and also the total time they need for it.
It is my bad that I let go of the car assuming that a brand like HDFC wouldnt take more than 2-3 days for the closure and paper work. I had to do this as I was dependant on the sell money to clear the loan.
I would suggest you to write ASAP to pnohdfcbank@hdfcbank.com and Grievance.Redressal@hdfcbank.com detailing your ordeal.

The branch manager of CMH Road branch is Mr. Manjunath Muthanna-9379199565. I suggest you to write first and wait for Manjunath's call.

This info is shared by one of the well wisher who read your experience but unfortunately isnt on this forum to reply to you. Hope this helps to take your case forward.
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Old 11th March 2014, 16:37   #104
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Default Re: Foreclosing an Auto loan - why the circus?

I already wrote before posting on FB. I went and filled a form from HDFC webpage(https://leads.hdfcbank.com/applicati...essal_form.asp) which I presume may finally get routed to the said aliases. After submitting, IIRC it said 5 or 2 business days to expect a reply. I had a frustrating experience here as well. After writing the entire story, I repeatedly had to resubmit my content as it doesnt accept special characters like < > ! and what not. How can I write a grievance without emoting? Do did they not care to understand? The page doesnt let the user know it doesnt accept special characters before hand.

I will anyways write to the aliases also. Many many thanks!

Last edited by funkykar : 11th March 2014 at 16:40.
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Old 11th March 2014, 19:45   #105
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Default Re: Foreclosing an Auto loan - why the circus?

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Originally Posted by funkykar View Post
I already wrote before posting on FB. I went and filled a form from HDFC webpage(https://leads.hdfcbank.com/applicati...essal_form.asp) which I presume may finally get routed to the said aliases. After submitting, IIRC it said 5 or 2 business days to expect a reply. I had a frustrating experience here as well. After writing the entire story, I repeatedly had to resubmit my content as it doesnt accept special characters like < > ! and what not. How can I write a grievance without emoting? Do did they not care to understand? The page doesnt let the user know it doesnt accept special characters before hand.

I will anyways write to the aliases also. Many many thanks!
It was a deliberate ploy on the part of HDFC bank ( most of the private sector banks/service providers too) to delay things, in the hope that at least some percentage of the guys will opt out of foreclosing the loan. These banks are no different than old time money lenders( 19th century) and are like leeches. they don't leave the prey once it enters the trap.

HDFC takes top place in this. They show you one document , and get your sign on a similar looking document with different terms in fine print. It happened to me with their CC, they showed me a document/also in their website, which states that annual fee is waived if customer spends XX amount in the previous year. But they charged me annual fee, even though i have met their criteria for spending. Then showed me a document, in which it is stated that fee will waived, if customer spend XX amount in the next year.

word "Previous" is replaced with "next" in the signed document. Biggest surprise, they refused to give a copy of the same to me( Sorry, it is bank property sir!!!)

Atleast Stan chart is better, they got sign on two copies of documents, gave me one copy singed by bank guy.

ICICI bank wanted one month notice in person( same ordeal like you, go and wait) to close a savings bank account from me. Then they did not send the balance amount ( approx 39K ) for two months. I got the balance only after writing a letter to banking ombudsmen

So if any one of wants to close savings account with these banks, first withdraw all the money through ATM and then give the application for closure.

Only way to get work done by them is to write to banking ombudsmen.

AFAIK, all type foreclosure penalties are banned by RBI.

I hope some similar mechanism(ombudsman) is there to complain against private cell phone operators.

Last edited by rkg : 11th March 2014 at 19:51.
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