[praveen4554]

I got a Axis Bank Loan - Fixed Interest Rate - 8.31% p.a

Axis is the lowest offering in the market. Dealers have some comission so bargain bargain ...earlier i was offered 9% but fought and reduced it to 8.31% .

Still it would have got down to 8% ( this is the best deal - but dealer wont get any comission / pay out on this)

[mithun]

Originally Posted by praveen4554

I got a Axis Bank Loan - Fixed Interest Rate - 8.31% p.a

Axis is the lowest offering in the market. Dealers have some comission so bargain bargain ...earlier i was offered 9% but fought and reduced it to 8.31% .

Still it would have got down to 8% ( this is the best deal - but dealer wont get any comission / pay out on this)

Why can't you get it directly from the bank itself ? Although it would take some time ?

[Devil on Wheels]

this is an eye opener guys. thanks a tonne.

I was about to go ahead with 9.5% offered by HDFC.

I am calling Axis first thing tomorrow morning.

[somebodystopme]

BOI is offering 8.5% Reducing but you got to have an account with them. Sad.

Axis bank fixed interest rate at 8.31% Wouldnt it turn out to be expensive then the HDFC's reducing at 9.5%?

[joecherian]

Does anyone has some info on which bank has the best rate for a car loan now ? HDFC gave me 9.75 for 5 years but and trying to see whether I can get a better rate.

[imp!]

My finance guy is offering me 9.75% for a 3 year loan, and he is an account manager with HDFC !!! obviously I need to bargain really hard, does anyone know what are the going rates?

[kiku007]

Kotak Finance. 10.5% Fixed rate of interest on reducing balance. Is this a good deal?

Appears that Axis is offering 8.5%, what's the catch if any??

[kiku007]

Originally Posted by kiku007

Kotak Finance. 10.5% Fixed rate of interest on reducing balance. Is this a good deal?

Appears that Axis is offering 8.5%, what's the catch if any??

Edit: Got a better deal - SBH offers first year @ 8% and then second year @ 10%. I'm just taking a 2 year loan. So this is a better deal IMHO. Icing on the cake is no processing fee

P.S: 20 mins editing limit crossed.

[thumpmeister]

HI Guys,

Renewing this topic with my reply i guess.

I have an approved loan from Reliance Consumer Finance for the Beat which I'm buying. Now REL has sent me the loan agrement with the usual zillions of signatures which are required.

Now i know the question might be stupid but still am asking it in a public forum: " Should i sign on the places where it is marked for me to sign even though the loan agreement has been kept blank by REL COnsumer FInance guys without filling in the details like tenure, emi, ROI, etc.. Please advice."

or should i return the agreement to the NBFC and tell them to fill in the details then i would sign the same.

[Devil on Wheels]

Originally Posted by thumpmeister

HI Guys,

Renewing this topic with my reply i guess.

I have an approved loan from Reliance Consumer Finance for the Beat which I'm buying. Now REL has sent me the loan agrement with the usual zillions of signatures which are required.

Now i know the question might be stupid but still am asking it in a public forum: " Should i sign on the places where it is marked for me to sign even though the loan agreement has been kept blank by REL COnsumer FInance guys without filling in the details like tenure, emi, ROI, etc.. Please advice."

or should i return the agreement to the NBFC and tell them to fill in the details then i would sign the same.

...(The rules says just two) Don't sign it. Unless you feel like committing Hara Kiri.

In terms of trust and transparancy, I would rate NBFC' at the bottom of the financial services providers. Or may be I would rate them just above the "Bhai log" who will give you a loan without any documentation.

What kind of ROI are they offering you??

Have you considered going to a nationalised bank? Dealing with them might be a painful process, but in terms of transparency I would rate them number 1.

[thumpmeister]

Originally Posted by Devil on Wheels

...(The rules says just two) Don't sign it. Unless you feel like committing Hara Kiri.

In terms of trust and transparancy, I would rate NBFC' at the bottom of the financial services providers. Or may be I would rate them just above the "Bhai log" who will give you a loan without any documentation.

What kind of ROI are they offering you??

Have you considered going to a nationalised bank? Dealing with them might be a painful process, but in terms of transparency I would rate them number 1.

Hi Devil,

They are offering me 9% ROI with an EMI per lac of Rs. 2060..for 5 yrs...Do you think REliance COnsumer FInance is that bad?

[Devil on Wheels]

Originally Posted by thumpmeister

Hi Devil,

They are offering me 9% ROI with an EMI per lac of Rs. 2060..for 5 yrs...Do you think REliance COnsumer FInance is that bad?

My remarks were not an assessment of RCF but on NBFCs in general. NBFCs are not subject to the kind of audits/rules/Acts that applicable to Banks. They are driven only by profits.

The most common trick used by NBFCs is to charge just one or two extra EMIs. A regular salaried guy rarely keeps track of how many EMIs he has already paid and never gets to know the loss that he has suffered. They also resort to debiting various charges to your account in the name of processing fees, documentation charges, etc. And in most cases you will get to know about these charges after you have signed the documents.

I have been an Auditor for couple of NBFCs (can't give you their names) and in almost all the cases I have seen them get away with such tricks. And in the unfortunate event when a particular borrower catches them red handed, all they need to do is appologise and blame it on a software error and return the money to the borrower.

I don't know whether Reliance Consumer Finance falls in the category of such NBFCs who would do anything to make more money, as I have never done business with them. May be, RCF is the best and most ethical NBFC out their, but its always better to be safe than sorry.

Its always safer for an individual (who is from a non-financial/accounting background) to deal with a nationalised bank.

Whatever you go with RCF or not is purely your choice, but NEVER, NEVER, NEVER sign an agreement which has blank spaces.

Few other thumb rules when signing agreements:

1 In case a particular clause af an agreement is not applicable to you, make sure you draw a line across it and write "NA" over it.
2 Make sure the document is effective from the date when you are signing it. Couple of days either way can be acceptable but never more than 3 days.
3 Make sure the agreement is adequately stamped. Refer your local State Government' website for the amount of stamp duty that needs to be paid. An agreement which is not adequately stamped 'may not' be enforceable in a court of law. Plus there are penalties levied by the Govt in case you don't pay the requisite stamp duty.
4 READ the agreement atleast 2 to 3 times, if you do not understand a particular clause ask the sales representative to explain it to you. Its his duty and obligation plus he gets paid for it. In most cases they try to rush you through the process so that you won't be able to read the agreement. Coz if you read it, you will ask a lot of questions and they just want to avoid wasting time on a closed case.

It is advisable to take along a friend/relative who is from a financial/legal background, so that they can go through the agreement while you let the sales guy distract your attention towards his nonsence.

When dealing with Banks/NBFCs you can not ask them to change a particular clause, but you can always refuse to sign the agreement if you don't like a particular clause.

Hope this helps.

[GTO]

Originally Posted by thumpmeister

Should i sign on the places where it is marked for me to sign even though the loan agreement has been kept blank by REL COnsumer FInance guys without filling in the details like tenure, emi, ROI, etc.. Please advice

Never ever sign on blank documents, whether its a loan application or any other (a tip for life, trust me). Tell your agent to fill out all details, sign wherever required, then take a copy for your own archive, before handing it back. Maintain a copy of your signed document in your car file at all times.

[MDe]

SBI looks like having a good deal. I checked with them on the interest rates that they informed me that they will offer the following schedule
1st year: 9% PA
2nd and 3rd Year : 10% PA
4th and 5th Year: 10.75% PA

All of these are relative to the card rate, so I am not sure how much difference would show in the years to come. Secondly, no one at SBI is able to give me an EMI figure based on these changing rates for 5 years. All the calculators are providing EMIs based on flat rate for the entire tenure. This is making it difficult for me to understand the benefit on interest amount that I can gain with this scheme against a flat 10-10.5% offered by other banks. Please share your thoughts for clarifying this.

[kaushik_s]

Has the car loan interest rates gone very high recently? Today I checked with one dealer and he was quoting me 12% reducing interest rate for a new car. Bank is HDFC. I asked him whether they don't deal with SBI, to this he informed me that SBI would be around 9% only. I guess they might have some tie-up with HDFC and get some good brokerage money.
Anyway, can someone please point towards the current best interest rates for buying a new car? Specially people who have recently purchase a car on loan?
Also what are the current rates for a used car? Still around 15-16% rate?