Is this a good deal - HDFC 11.5% 3yrs

iTNerd · 7th June 2007, 15:28

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!

kuttapan · 8th June 2007, 01:06

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.

GTO · 8th June 2007, 11:31

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.

shivkumar19 · 8th June 2007, 12:11

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

mobike008 · 8th June 2007, 12:54

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

iTNerd · 8th June 2007, 13:23

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.

TRANSAM · 8th June 2007, 13:43

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

iTNerd · 8th June 2007, 14:41

Quote:

Originally Posted by mobike008

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

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..

kuttapan · 8th June 2007, 22:59

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.

kamy450 · 9th June 2007, 00:43

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 !!

mobike008 · 9th June 2007, 12:48

Quote:

Originally Posted by iTNerd

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..

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

TRANSAM · 9th June 2007, 14:46

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?

abhibh · 9th June 2007, 16:35

Quote:

Originally Posted by mobike008

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

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

.

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.

iTNerd · 11th June 2007, 02:48

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???

varunroy · 22nd June 2007, 20:50

Quote:

Originally Posted by iTNerd

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....

7th June 2007, 15:28	#1
iTNerd Senior - BHPian Join Date: Apr 2007 Location: Imphal/Noida Posts: 1,241 Thanked: 1,214 Times View My Garage	Is this a good deal - HDFC 11.5% 3yrs 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!
	() Thanks

8th June 2007, 01:06	#2
kuttapan Senior - BHPian Join Date: May 2007 Location: Melbourne Posts: 1,155 Thanked: 22 Times View My Garage	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.
	() Thanks

8th June 2007, 11:31	#3
GTO Team-BHP Support Join Date: Feb 2004 Location: Bombay Posts: 70,512 Thanked: 300,695 Times View My Garage	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.
	() Thanks

8th June 2007, 12:11	#4
shivkumar19 BHPian Join Date: Apr 2007 Location: Bangalore Posts: 87 Thanked: 117 Times	check out SBI also. i got 12.25% for 5 yrs .
	() Thanks

8th June 2007, 12:54	#5
mobike008 Distinguished - BHPian Join Date: Sep 2006 Location: Seattle, WA Posts: 11,695 Thanked: 14,809 Times View My Garage	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
	() Thanks

8th June 2007, 13:23	#6
iTNerd Senior - BHPian Join Date: Apr 2007 Location: Imphal/Noida Posts: 1,241 Thanked: 1,214 Times View My Garage	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.
	() Thanks

8th June 2007, 13:43	#7
TRANSAM BHPian Join Date: Feb 2006 Location: MUMBAI Posts: 705 Thanked: 247 Times	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
	() Thanks

8th June 2007, 22:59	#9
kuttapan Senior - BHPian Join Date: May 2007 Location: Melbourne Posts: 1,155 Thanked: 22 Times View My Garage	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.
	() Thanks

9th June 2007, 00:43	#10
kamy450 BHPian Join Date: May 2007 Location: Bangalore Posts: 244 Thanked: 0 Times View My Garage	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 !!
	() Thanks

9th June 2007, 14:46	#12
TRANSAM BHPian Join Date: Feb 2006 Location: MUMBAI Posts: 705 Thanked: 247 Times	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?
	() Thanks

11th June 2007, 02:48	#14
iTNerd Senior - BHPian Join Date: Apr 2007 Location: Imphal/Noida Posts: 1,241 Thanked: 1,214 Times View My Garage	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???
	() Thanks