Go Back   Team-BHP > Around the Corner > Shifting gears


Reply
 
Thread Tools Search this Thread
Old 25th August 2008, 16:22   #1
Team-BHP Support
 
mobike008's Avatar
 
Join Date: Sep 2006
Location: Hyderabad
Posts: 10,521
Thanked: 7,202 Times
Default Help Needed : HDFC Personal Loan

A friend of mine is interested to opt for a 3L personal loan. He got the following offer from HDFC bank

Option 1
Amount : 3,00,000
Interest Rate: 14% diminishing
Processing fee: 1% ( Rs.3000)
EMI/Lac ( 36 Months) : Rs.3418
EMI/Month ( 36 Months) : Rs,10,254

Option 2
Amount : 3,00,000
Interest Rate: 14% diminishing
Processing fee: 1% ( Rs.3000)
EMI/Lac ( 48 Months) : Rs.2733
EMI/Month ( 48 Months) : Rs,8,199

Can someone advise if this is a good offer and the current market rate prevalent? Is there a scope for negotiation on above?
mobike008 is offline   Reply With Quote
Old 25th August 2008, 16:58   #2
Senior - BHPian
 
shankar.balan's Avatar
 
Join Date: Apr 2008
Location: BLR
Posts: 8,053
Thanked: 5,304 Times
Default

Quite reasonable deal IMO going by current market conditions.
Ask him to also check on whether he can make part pre-payments if he gets a windfall. And plse check how much he will incur as Foreclosure charges in case he decides to foreclose after say, a year and a half, when about 50% of the tenure is finished.
Typically if one can afford the EMI, for Personal loans, a 3 year term is better than a longer term.

Quote:
Originally Posted by mobike008 View Post
A friend of mine is interested to opt for a 3L personal loan. He got the following offer from HDFC bank

Option 1
Amount : 3,00,000
Interest Rate: 14% diminishing
Processing fee: 1% ( Rs.3000)
EMI/Lac ( 36 Months) : Rs.3418
EMI/Month ( 36 Months) : Rs,10,254

Option 2
Amount : 3,00,000
Interest Rate: 14% diminishing
Processing fee: 1% ( Rs.3000)
EMI/Lac ( 48 Months) : Rs.2733
EMI/Month ( 48 Months) : Rs,8,199

Can someone advise if this is a good offer and the current market rate prevalent? Is there a scope for negotiation on above?
shankar.balan is offline   Reply With Quote
Old 25th August 2008, 17:01   #3
BHPian
 
Join Date: Jan 2008
Location: Chennai
Posts: 449
Thanked: 6 Times
Default

This is quite reasonable. I got a 5L loan for 3 years at 14.5% interest recently from ICICI. My EMI works out to 17210 per month. But no part payments are allowed my personal loan with ICICI (i think this is the norm in other banks too, not sure though)
Mission_Safari is offline   Reply With Quote
Old 25th August 2008, 17:07   #4
Team-BHP Support
 
mobike008's Avatar
 
Join Date: Sep 2006
Location: Hyderabad
Posts: 10,521
Thanked: 7,202 Times
Default

Thanks M_S and Shankar. Even i told him this looks to be a decent deal. Will ask him to check on the fore-closure part as well.

Also, is 1% processing fee mandatory? No scope for negotiation here?
mobike008 is offline   Reply With Quote
Old 25th August 2008, 17:08   #5
Senior - BHPian
 
iceman91's Avatar
 
Join Date: Nov 2004
Location: melbourne/bangalore
Posts: 1,958
Thanked: 22 Times
Default

Totally agree with shankar, check wiht the foreclosure procedure and charges.
I too got a similar offer from Citibank and just for the heck of it I asked for details.
For 3L they too were asking around 8200 and 10300
It seems good but bargain to get the processing fee waived off, it might work
iceman91 is offline   Reply With Quote
Old 25th August 2008, 17:11   #6
BHPian
 
praJEEP's Avatar
 
Join Date: Aug 2007
Location: Bengaluru
Posts: 537
Thanked: 3 Times
Default

Thats the pretty reasonable offer your friend has got, i would suggest him to go for 24 months his emi will come to 14,404, he will be paying intrest 45696/- and again it depends upon his financial ability if he feel's he is comfortable let him go for 24 months if not nothing more than 36 months.

Last edited by praJEEP : 25th August 2008 at 17:28. Reason: changed the genders.
praJEEP is offline   Reply With Quote
Old 25th August 2008, 17:12   #7
BHPian
 
Join Date: Jan 2008
Location: Chennai
Posts: 449
Thanked: 6 Times
Default

Quote:
Originally Posted by mobike008 View Post
Also, is 1% processing fee mandatory? No scope for negotiation here?
Atleast, i didn't have that option. The ICICI bank personnel i was dealing with said the processing fee cannot be waived off.
Mission_Safari is offline   Reply With Quote
Old 25th August 2008, 17:25   #8
Team-BHP Support
 
mobike008's Avatar
 
Join Date: Sep 2006
Location: Hyderabad
Posts: 10,521
Thanked: 7,202 Times
Default

Thanks guys. I don't think he can afford a 24 month tenure but, i will certainly ask him to opt for 36 months.
mobike008 is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
The Cheap Loan or the Smart Loan - SBI Advantage Car Loan keyur Indian Car Loans & Insurance 208 5th July 2017 15:56
Loan query - is this loan deal OK (From HDFC) BenjiRoss Indian Car Loans & Insurance 100 2nd September 2010 16:51
HDFC Bank Car Loan Formalities sandipwadje Indian Car Loans & Insurance 4 15th October 2008 19:48
Quoted 13.5% From HDFC Reducing Loan somebodystopme Indian Car Loans & Insurance 15 23rd April 2008 18:03
My experience with HDFC Finance (Auto Loan) VtecDeGr8 Indian Car Loans & Insurance 16 25th January 2006 03:41


All times are GMT +5.5. The time now is 18:12.

Copyright 2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks