Team-BHP (https://www.team-bhp.com/forum/)

-   Indian Car Loans & Insurance (https://www.team-bhp.com/forum/indian-car-loans-insurance/)

-   -   Is this a good deal - HDFC 11.5% 3yrs (https://www.team-bhp.com/forum/indian-car-loans-insurance/24874-good-deal-hdfc-11-5-3yrs.html)

Hey guys, I am pretty close to getting approval for a car loan ..Approached my bank HDFC today and had a pre-approved loan of 5.4 lakhs in my account. I am planning to take a 5 lakhs loan to buy a car (SX4) and after some bargaining, I got the following offers:

On 5 lakhs
11.5% (3 yrs).
12.25% (4 yrs)
12.50 (5 yrs)

In terms of EMI per lakh, its something like
Rs. 3267/lakh (3 yrs)
Rs. 2619/lakh (4 yrs)
Rs. 2227/lakh (5 yrs)

*Monthly reducing

EMI comes out to be around Rs. 16500...

I just wanted to know if this is a good deal... I am pretty new to EMI and car load things and would appreciate any of your advice and suggestions regarding this... You guys are great!

For 5lac loan @12.5% for 60 months, EMI should be 11,249.
For 5.4 lacs, it is 12149(rounded to the nearest rupee).

For 5 lacs @11.5 for 36 months, correct EMI is 16,488. EMI per lac would be 3297.

Hi ITNerd,

I think you may find this article helpful : Link

Do check out the excel sheet in that article, since it will help you to accurately calculate interest / EMI rates.

check out SBI also. i got 12.25% for 5 yrs .

I suggest you skip ICICI/HDFC and go for SBI or another other nationalised banks like PNB, IOB etc.

Apart from lower interest rates they also calculate your loan on " Daily Diminishing".

Insist on DD feature you will save a pile of money:)

hey GTO, thanks a lot for that link.. and the excel sheet is really useful... I have two loan offers from UTI and HDFC. I am not able to decide which one I should go for..

HDFC (I have my saving and CC accounts with them.)

Rs 5 lac @11% 3 yrs for which EMI comes to be around Rs. 16225
Net Interest= Rs. 84100
Processing fee=Rs. 2300



from UTI (through dealership)
Rs 5 lac@13.75 3 yrs with 4% payout. EMI comes to around Rs. 16835
4% Payout on net amount = Rs. 19326
Net Interest=Rs. 10,6060 - 19,326= Rs. 86734
Processing fee= Rs. 1100

Clearly, HDFC is giving a competitive offer (afte hard negotiation) and already have a pre-approved loan of 5.5 lacs on my account. So no documentation and final approval is just a day or two. But When I insist that I would be goin with HDFC bank, my dealer told me horrible stories about dealing with third-party banks and they say they won't be liable for it if something goes wrong from the bank. Clearly the dealer was not happy about not goin with UTI.

I just wanted to ask:
* benefit of going with the dealership linked banks? If so how?
* UTI Prepayment penalty?
* does going with dealership bank fasten the delivery of vehicle (SX4)?
* turnaround time for UTI loan? (though the dealership consultant said they will take care of any problem)
* Finally, which of these two banks should I go for putting reliability in concern?

Please guys, will be a big favor in helping me out.

apply through state bank of patiala, they offer at 11.25% or may be even 11%. for a private bank 11.5% is too good a deal

I could not go with Nationalised banks as I only started working last year and does not have tax returns documentation for the last two years..

SBI will not compromise on any paperwork, they go by the rule book only.

I had no problem with my dealer in taking an out-of-house finance, maybe you should talk tough with your dealer.

I have got loan from HDFC, this is my third car loan in last 5 years. one was from SBI and rest two with HDFC.

My view is to go with SBI or IOB. i had good exp with them specially when i was closing my loan account with SBI.

HDFC carries hidden charges and when u approach them for loan closure they will not be easy on that....

Regarding your dealer prefering for UTI is simple he has some commision fixed for loan with DSA. its none of his business from where u get your car loan. he should be getting his car money where ever u go for loan.

Good luck !! :thumbs up

Come on, that should not be a criteria for SBI to reject your loan application. I am sure you can find a way to convince them

yes itnerd, they get the car (hypo) as security, till you pay up the emi's, so i doubt its a criteria when you have started working? i suggest you do another recce on this?

Well even i don't file income tax myself as of now and i approached my BANK HDFC like a month back i was eligible for everything as my last 3 months credits were like 1 lac debits being 50+k. I asked them about car loan and they were ready to give me loan without much documentation but when the guy run some test on computer i was not eligible as minimum age was 21 and i m still 20 :p.

Also the guy said i will be eligible for a free Titanium Credit Card from HDFC as i have my account with them for 3 years then + loan will be easy

Check if your documents are correct plus try to bring down your EMI I heard sm1 i know got a loan for 5 years with an EMI if Rs 2167 from SBI

Plus i have heard there is one car finance company which provide car loan to people who dont file INCOME TAX. I will try to remember it and let you know.

ok... some update on the HDFC bank loan.. though they say they are offering 11% IR on 5 lac (3 yrs) for which EMI comes out to be Rs. 16,225.. I recalculated the EMI using the 'excel sheet 'Loan Amortization Schedule' from nikunj_cal and weirdly the interest rate for the EMI of Rs. 16225 (on 5 lacs for 3 yrs tenure) comes out to be 10.39% precisely.. Is this correct? Think I am missing something here???

Check out this calculator. Should clear the air.

Personal Loans India: Best Personal Loan Rates in India

So long....