[autotranny]

Originally Posted by nareshov

Additionally, it isn't the case that SBI is the only bank in town. There're plenty of other banks out there that may not have such a sharp minimum salary requirement.

Bingo. It is NOT just SBI that has these income criterion. All private sector banks have clear cut off salaries for all their retail loan products, credit cards etc. It is just that they don't publicize it like SBI did. Many a time, even if your loan gets rejected due to these cut off levels, they don't bother to inform the applicant on the correct reason.

RBI is working on improving banking inclusion where all sections of the society will benefit from the banking system. However most of the times, the banks have to safeguard their own interests than the larger interests of the nation and hence they find ways to overcome RBIs policies.

[TheG2]

Originally Posted by Red Color Lover

SBI has probably got the worst staff, service and products compared to any private or international banks.

I would personally never go to SBI for any loan and would advice others against it.

What is shocking is the government and its machinery's attitude! Instead of offering low interest loans to attract consumers to revive the auto industry SBI is actually dealing a body blow to it.

Dear Red Color Lover,
Do you have any specific experience with SBI which forces you to make such remarks about the SBI banks service, staff and product?

I ask since I have exact opposite opinion to yours regarding SBI. I have taken auto and home loan both with SBI after having enough of ICICI and HDFC.

Best,

[Red Color Lover]

Originally Posted by TheG2

Dear Red Color Lover,
Do you have any specific experience with SBI which forces you to make such remarks about the SBI banks service, staff and product?

I ask since I have exact opposite opinion to yours regarding SBI. I have taken auto and home loan both with SBI after having enough of ICICI and HDFC.

Best,

Dear TheG2

SBI had charged me a hefty amount of TDS when I was a student, not earning. It was a bad experience. Their staff are the most impolite and incapable.

HDFC and ICICI are far better.

[HappyWheels]

Originally Posted by Red Color Lover

Dear TheG2

SBI had charged me a hefty amount of TDS when I was a student, not earning. It was a bad experience. Their staff are the most impolite and incapable.

HDFC and ICICI are far better.

I have my current car loan from SBI and the whole process went very smooth even though I had to wait for some time for the person on the loan section to start work. But then the manager also pitched in, on that say, to clear the back log.

Even when I went back to collect the cheques, when I got auto payment activated, it was just the time required to submit the request and collect the cheques.

Hope the day I go back to close the loan I get a similar experience.

The earlier car loan was with ICICI and for that never visited the bank. Loan done through DSA and closing and request for clearance letter done via net banking.

[autotranny]

Originally Posted by HappyWheels

The earlier car loan was with ICICI and for that never visited the bank. Loan done through DSA and closing and request for clearance letter done via net banking.

Exactly the point. With HDFC or ICICI, you hardly have to go to the branch to avail the loan. In SBI on the otherhand, you have to go, wait and they act as if they are doing you a favour by giving you a loan, whereas it is their primary business.

By the way, I have the right to be biased since I have worked for 9 years in HDFC and one year in a Public Sector bank.

[TheG2]

Originally Posted by Red Color Lover

SBI had charged me a hefty amount of TDS when I was a student, not earning.

What exactly do you mean by that Bud? Did you take a study loan?
TDS for/from what?

Best,

[Red Color Lover]

Originally Posted by TheG2

What exactly do you mean by that Bud? Did you take a study loan?
TDS for/from what?

Best,

TDS for fixed deposits. I never took a study loan.

[Pancham]

Originally Posted by Red Color Lover

TDS for fixed deposits. I never took a study loan.

Aren't they supposed to charge TDS on fixed deposits. They don't only if you are a senior citizen and you submit form 15H or G (can't remember).

[freakmuzik]

This news was kind of shocking and I was just thinking as to how arrogant a bank can be to decide what kind of person can buy a car. But on talking to my dad who was a bank employer, I think it makes sense. The NPA of all the banks are hitting high with very less repayment rate in many cases. So atleast for a certain period of time, this must be carried on considering the banks side! I've heard loads of stories from my dad about the loan recovery issues and stuff. I guess, the banks are pretty helpless about it!

[Gansan]

Banks have the absolute right to fix a minimum income requirement and credit worthiness before extending credit for any purpose. It is absolute childishness and talking trough the hat to call it as "arrogance' on the part of banks!

HDFC and ICICI banks may require less paper work for car loans. But what about their interest rates and calculation of interest, pre-closure norms etc, when compared to PSU banks?

[srishiva]

Hope the rumour about lower rates for home and auto loans will come out true. They should also have differential rates for first time home buyers vs others

[rohan_iitr]

Originally Posted by Red Color Lover

TDS for fixed deposits. I never took a study loan.

Banks are required to deduct TDS if the interest from your deposits exceeds 10k. It doesn't matter whether you are a student or salaried.

If you are not an income tax payer, it is your responsibility to inform the bank in writing (using for 15G/H) before the end of every financial year.

Rohan

[DieselFan]

Originally Posted by Gansan

Banks have the absolute right to fix a minimum income requirement and credit worthiness before extending credit for any purpose. It is absolute childishness and talking trough the hat to call it as "arrogance' on the part of banks!

HDFC and ICICI banks may require less paper work for car loans. But what about their interest rates and calculation of interest, pre-closure norms etc, when compared to PSU banks?

This is true. It is also true that all banks do this kind of credit worthiness check but do not publicise it. It would have been better for SBI to ask for more collateral as well as down payment and provide a lesser loan with higher Rate of Interest for the needy instead of altogether disallowing loan to people with income below 6 lacs.

Originally Posted by Red Color Lover

Dear TheG2

SBI had charged me a hefty amount of TDS when I was a student, not earning. It was a bad experience. Their staff are the most impolite and incapable.

HDFC and ICICI are far better.

This is the process with all banks not just SBI. If you are a student then how come you got money to put it in FD. It would be either your father's/mother's income. Hence as per IT law the interest earned by you from the money received from your earning parents will be added to the income of your parents. Hence the interest becomes taxable. SBI did what is correct.

Originally Posted by srishiva

Hope the rumour about lower rates for home and auto loans will come out true. They should also have differential rates for first time home buyers vs others

With the latest hike in repo rate to 7.5% the loans are getting dearer or more expensive by about 0.5%.

[Red Color Lover]

The RBI Governor has just killed the markets with his overtly cautious approach. Hiking already high interest rates? So much for the rickstar

[Ramon]

I work in one of the associate banks of SBI. I would like to share what I have seen on the other side. Customers come and take loans some repay promptly and on schedule. That is a win win situation for both the bank and the customer and they close the loan on time. Agree that Public Sector Banks may be slow in some cases but they tell you what u ll he charged upfront and intrest is mostly on the lower side compared to the private players. U can be sure that there wont be any nasty hiddn surprises later on.
Lately my bank has been siezing the cars of wilful longterm defaulters and auctioning them. Mostly these are hatchback entrylevel cars (donno why). On auction mostly u get only a fraction of the outstanding amount on the loan. Due to the long term defaults the principal + interest sometimes be higher than the price of a new car of similar specs. And recovering the remaining amount is nearly impossible. This means a loss to the bank which in turn means a loss to me and u - the taxpayer.

I remember a recent case in which a doctor couple with a thriving practice refused to repay their car loan dues for months together despite repeated reminders and notices. Finally when the bank officials went to sieze the car (a D segment sedan) he calmly handed over the keys and told ok now that you have the car there is nothing between u and me. The outstanding was again more than the cost of a brand new car (margin for car loans is usually 10-15% hence low safety margin for the bank) and the car had run for over 20k kms. Again a loss for all.

And if a manager is unlucky to get an extra curse of these willfull defaulters he is sure to get adverse entries i his confidential report and can say goodbye to his promotion prospects for a minimum of 3 years.

Sometimes we may feel the bankers are asking for too many documents but infact they asking for documents to support your loan request as the request is mostly sanctioned by a centralised loan processing centre. Though the official at the bank may know you personally and knows u have the repayment capacity and will repay the one at the processing centre does not know. It is because of this knowledge that ur loans are secure that PSB are able to offer comparitively lower interest rates.

I agree that there are some pple with rude behaviour. Then such people can found almost everywhere.

Sorry for the long post.