Team-BHP - ARTICLE: How to get the lowest EMI & the best Finance Deal

I have taken out car loans in the past, but every time from the bank. I have enquired over phone, the RM has put me through to the car loan sales team and I have haggled with them and their managers over the EMI and other charges, pitting banks against each other.

Where does one find the DSAs that are being spoken of? Are they the same guys that come down to collect documents, get signatures etc? Please throw some light.

Need help !

Planning to book a 2012 Ninja 650 soon and avail a loan of about 2 to 2.5 lakhs.

I saw on the internet and was told by the Probiking manager about their tie-up with HDFC for financing their Superbikes. He did not give me an ROI figure though and neither does the HDFC website. He did tell me though that last April they were offering a 7.7% ROI for the Ninja 650. No clue about the tenure or terms.

Wanted to know people's feedback and review of availing this SuperBike Loan from HDFC (they claim its the first of its kind in India).

FYI, I have SB accounts with ICICI, ING & SBI and a Salary account with HDFC.

quick question guys, i got a zero percent processing fee offer from HDFC, but they claim that there will be a stamp duty charge of 0.51% which cannot be avoided.. Anyone has any idea about this stamp duty fee?

Quote:

Originally Posted by DoneAndDusted (Post 2927655)

Any document which needs to be registered has to pay a stamp duty fee which is nothing but franking & can be done at any scheduled bank. I am relating to the home loan doc which I had franked for an fee of 0.1% of the loan amount. The same should hold good for the car loan too. :)

Quote:

Originally Posted by ghodlur (Post 2928051)

Thanks ghodlur. I asked around and learn that the stamp duty is a mandate from the state governments and there is no way around it.

Quote:

Originally Posted by acroback (Post 2929597)

So, I am a priviliged customer at ICICI bank.
How can I take this to my advantage for a Car Loan?
Any pointers?

If you are a saving a/c holder or any loan a/c holder then a couple of advantages is they dont have to re-verify your documentations for the car loan and plus you can demand a special offer on the car loan ROI for holding an a/c with ICICI. Based on your records and relationship with ICICI, the processing charges and the time for the loan approval will also be less.:thumbs up

Quote:

Originally Posted by ghodlur

Time of loan processing will only be less in this case however they definitely demand all the required documents, i have found getting a home loan easier than car loan, also it is much easier to deal with public sector banks than private sector ones. The reason why they would demand all the fresh documents is because the documents you had submitted along with your account opening form would be old and they need the latest documemts for loan processing.

I am taking a car loan from HDFC Bank at 10.75%. The rate seems reasonable to me.

What I wanted to highlight here was how the sales rep tried to force a loan insurance from HDFC ERGO Life, along with the car loan.

I believe you only need to give 3 cheques to the bank as a surety, in case an EMI fails via ECS. The sales rep asked for 4 cheques, and I gave all in the name of HDFC Bank. He called later asking for 1 cheque in favor of HDFC ERGO, which is when I got suspicious, since I did not opt to take insurance from HDFC.

This insurance is like a term insurance and is not a mandatory / as per policy requirement, and customer can opt out of it.

thanks
Srini

Hi Guys,

Wanted to discuss the interest rate reduction in car loans spurred on by the RBI cut. According to news reports, already HDFC has cut it by .5%. The news articles says that it'll be down to 10.5% now, but thats what I was getting offered by these guys anyway with Axis going as low as 9.9%.
I decided to wait until Monday to see what the best rate these guys come up with, cause I'm sure that this will be reduced further by 25 or 50 bps.

Anyone who can shed some more light on this?

Quote:

Originally Posted by kk707 (Post 3030286)

I suggest that if you get a good deal on the car then finance for it immediately. Waiting for the ROI to drop further may in turn lead to car prices rising and you may not enjoy any benefits of the EMI drop.

KK707,
Yes many banks have lowered their base rates from today for car loans due to RBI policy urging them to do so.
Had mentioned similar thoughts on this last week at : http://www.team-bhp.com/forum/indian...to-sector.html

But as you observed, the quantum of reduction is not much - probably due to a soft reduction from RBI itself.

Regards.

My wife just availed a Car Loan from HDFC and she was offered 10% fixed for 5 years. We were able to get funding of upto 95% on our Ertiga ZDi.

We categorically mentioned that we were not interested in Advance EMI and none was charged.

Also got the processing fee down to 50% at Rs 2295 from Rs 4590.

Overall a good deal I suppose!

A query,

My car has 4 EMI's left on it. I don't want to close the loan by paying the balance in lumpsome and I am planning on selling the car.
Is it is possible to sell the car and transfer ownership , at the same time let the EMI continue under my name?

Any info is welcome.

Quote:

Originally Posted by tharian (Post 3097297)

No,you can't. It is mandatory to close the loan before ownership transfer.