Originally Posted by tsk1979 This is related to the ICICI thread, but after being on phone with number of agents of different banks I found out that they lie through the teeth. They will tell you that they will offer load at 6.5% interest. I asked him about EMI and tenure, After that I went to http://www.sundaramfinance.com/calc/emicar.asp I entered the EMI 12322, for 36 months.the interest rate came to 6.84%, with 6.5% the emi should be 12259. Now 63rs/mo for 36 months means cheating of rs 2268. Such a small amount over three years. But cheating is cheating. Somebody I know got a loan at 9.5% with finace discount of 4.5%, but when I put his emi in the calculator it was 9.9%. Now 50-100rs/month is something he wont notice, and many people dont even bother which leads to such modus operandi by agents of banks. On longer term loans like 7 years this cheating in even more.

Originally Posted by deepakhon Good post this one. Most of us do not want to do any calculations nor do we know how the heck they calculate. Good to know that there is a calculator available which gives us the exact EMI for that rate of interest.

Dear friends,

Please, please always be aware on EMIs, their calculations and other factors. A couple of Rs - 10-200 Rs on an EMI will give you huge loss or gain on the complete tenure on the loan.

There are standard amounts decided - based on:

Total Loan amount/Interest Rate/Loan Tenure. Based on this EMI amount per lakh is decided. Multiply that for your loan amount in Lakh. Verify that your EMI amount is at least the same as that, not more than that.

In addition, one of my friend had bad experience from ICICI. He is working in Wipro, Bangalore and happen to apply for a Home Loan for 15 Lakhs, the interest rate was 7.25 % fixed for 20years(ICICI gave that in writing, FIXED for 20 Years, but now I do NOT believe that) nad for 15 years. They had given him the EMI amounts etc, but when the loan got sanctioned it was different. It was more than previously mentioned amount, when he checked with many people ICICI bank, no one was able to reply for his query, but on careful examination on the sanction letter, the Loan amount itself was more. 15 Lakh was 15 Lakh and 30, 000. This 30,000 was for some insurance - which premium amounts they added to his loan amount and the poor guy was made to pay interest for that for 15 years for the same. I had asked him to talk to the guys and re-sanction the loan for 15L.

But this was on a tight schedule, the property builders were behind him to do registration, etc so he had no time. But finally he directly went to ICIC bank, sat there, talked to the Manager and made them make the new loan sanction letter for the correct amount.

So please please aware that these things happen - so take very good care when you deal financials with these unethical instituitions. They do not have any Credit Worthy histories, they just want to make quick bucks - unethically.

I feel Accountability, openness and customer centric and a few words which lacks meanings on these financial instituitions. Not only ICICI, but all these multinational so called Banks. I feel we should only go with our nationalised banks like SBI etc, but yes we understand they take long time to process and not at all customer friendly.

But anyways - we are paying for the mess :(

Regards,
Narayan

Originally Posted by observer SLK, sorry, the tenure is 3 years and the rate of interest is 10% (that's what the dearler is telling me). 3% is finance discount, so should I say the rate is 9%. Should I get a better deal? Thanks

Originally Posted by Zappo Observer, my personal feeling is the rate is a tad higher than what it should be. Marutis are available at much more competitive interest rates. But then again the rate varies from model to model. One thing I can tell you though is that you should go shopping for the loan. Do not accept what one financier tells you. Once you start doing some shopping on the loan it is then that the rate starts tumbling down magically. In fact you will find that even when you involve two three different DSAs for the same financier and let him know that you are getting a better deal through some other guy (for the same finance co.) the rates come down.