Pls guys!! Loan interest rates advise!!!

csentil · 23rd October 2007, 13:50

kgrajiv: Makes sense. I have done the same thing. I went in with SBI a year back. If you have all documents its better to go to the Nationalized banks. One of the reasons being they don't raise their interest rates as fast as the other banks and they also don't take immediate action like other banks.

They are also more interested in reducing their liabilities also. So typically very less or no partial prepayment charges with them.

ICICI is out to fleece people and I'm sorry to say that their loan department is pathetic. We had a huge thread here about ICICI and I've also dealt with them. As a bank ICICI is terrific, but not on the loans front.

kgrajiv · 25th October 2007, 08:55

I agree it takes few days more to reach out to nationalized banks for loans. But I feel the effort is worth since the money you save is on higher side. I was told some banks pvt bank charges 500 rs. (I see it is very small) for changing the PDCs. What stupidity , there should be some good reason to charge customers not like this.

Anyway I have gone ahead with Indian bank and they will take 5 days to process. Let us see how it goes

shatrughna · 27th October 2007, 00:38

Good luck kgrajiv. I had gone to a car dealer merely to enquire about few options and got to meet a guy from Kotak bank. the rack rate 13.75% he offered and 4% payback. If I inbuild the payback then overall roi- for tenures upto 3 years( on loans below 6 lacks)- he offered 10.5 % and above 3 years-10.75%, but prepayment charges - 5% and I walked back. I was also facing similar dilemma whether to go for a loan or not with such heavy preclosure penalty.
I am considering to approach SBI/UTI now. SBI may also come with some bumper offers for car and home loans in the year end/ new year bonanza but its so difficult to wait for so long.
Please, share your experience with Indian Bank once the deal is through.

iridium · 27th October 2007, 08:04

I bought a Swift VDI last month and took a loan from Corporation Bank, Bangalore.
Interest rates are 11.5% for 5 years. EMI per month per lak is Rs. 2196.xx
No preclosure penalty and no part payment restrictions.
On making partpayments, the tenure reduces.

Only Nationalised banks seem to offer the following:
1. No preclosure penalty
2. No part payment restrictions
3. Close loan anytime.

However the time taken to get loan approval/disbursal can vary from a week to two weeks. In my case it was 8 days and I had to follow up with the Bank manager almost on a daily basis.

I also had to pay processing fees of 1% and stamp paper charges of Rs. 660.

With the kind of interest rndsoft1 has got, one can run the loan for the entire term. Why preclose.

Always look for EMI per month per lakh and then compute the total interest that would be paid over the term of the loan and then compute the simple interest.

Don't go by the interest rate percentages quoted. That can be misleading.

Also private banks have something called "Advance" and "Arrears".
In "Advance", one EMI is taken at the time of sanctioning the loan itself. The interest rate maybe upto .25% lesser in this case.
So if the actual tenure is 60 months, one ends up paying only for 59 months since one EMI would have already been taken in advance.

In arrears, the entire EMI would need to be paid.

One more thing to note:

1. Private banks - If the loan is disbursed after the 20th of a month, then the first EMI kicks in one month later. If the loan is disbursed within the 20th of a month, then the first EMI starts in the first week of the succeeding month.

2. Nationlised banks - The bank manager has the flexibility to start the first EMI (and the subsequent EMIs will follow suit) within 30 days of the loan disbursement. So you can talk to them and ask them to start it exactly on the 30th day after the loan disbursement.

In my case, Corporation Bank asked me to sign on Form 29 and 30 and give it to them. They wanted it as a lein in case I default on the payment. This is almost like selling the car even before I buy it.

They also wanted all receipts (for the money paid) and copies of RC book, insurance !.

Regards
Ravi.

kgrajiv · 14th November 2007, 18:05

Shatrughna, my loan is through at Indian bank.

Good part is they were very receptive and flexible. For instance they had a gaurantor clause which they din't streess weaived off with verble referal.

Overall the processing time is the only catch as it took a week to process completely. My vehicle delivery was also due in a week so no much of a problem for me.

My final EMI was Rs. 12930 for 6 lacs loan with 5 years duration. No pre- payment and pre-closure charges. No need for any PDC deposits. Payment can be done through direct debit facility.

I feel it is just you need to do couple of visits to PSU Banks otherwise their CS is better then these ICICI and HDFC banks.

swageo · 15th November 2007, 17:36

SBI offers 11.00% for 3 yrs and 11.25% for 5 yrs. 2% for pre-closure before half the tenure. No advance EMI payment and things are very transparent

dadu · 15th November 2007, 19:00

ICICI bank is offering an EMI of 22,600/- for 3 years and 15,300/- for 5 years on a loan amount of 7,00,000/- with 1 advance EMI for each and 4% pre-closure. Processing charges 3,450/-.

Is there a reverse calculator available for calculating the %ages with these details. Please post links.

swageo · 18th November 2007, 13:33

Quote:

Originally Posted by dadu

ICICI bank is offering an EMI of 22,600/- for 3 years and 15,300/- for 5 years on a loan amount of 7,00,000/- with 1 advance EMI for each and 4% pre-closure. Processing charges 3,450/-.

Is there a reverse calculator available for calculating the %ages with these details. Please post links.

EMI Calculators

Try giving various combination.

s0uljah · 23rd November 2007, 13:58

Need to start the loan process again, I had finalized with HDFC around 6 months back but then scrapped the idea of purchasing the vehicle altogether.

Reasons for opting for HDFC is that we currently have 3 auto loans going on with them(company vehicles) so I assume it gives me some leverage (100% finance, decent rate).

Any other options you guys suggest? Would be finalizing in the next day or so.

philjo · 26th November 2007, 22:18

@s0uljah, finally I decided to go with SBI and submitted my papers today.

s0uljah · 28th November 2007, 21:30

This is what we have been offered from HDFC

11.25% reducing for 5,70,000 (90% funding of OTR)

Thats approx 3300/Lakh/Month right?

Anythign else I need to check ?

Quote:

Originally Posted by iridium

I bought a Swift VDI last month and took a loan from Corporation Bank, Bangalore. Interest rates are 11.5% for 5 years. EMI per month per lak is Rs. 2196.xx

Congrats! What % funding of the OTR cost did you get ?

Quote:

Originally Posted by philjo

@s0uljah, finally I decided to go with SBI and submitted my papers today.

Good to hear that Philip. Im still in the process of finalizing.

Holyghost · 29th November 2007, 11:29

Hi I'm looking for loan for an amount of 6 - 7 Lakhs.... Can I know which bank provides partial prepayment option?

23rd October 2007, 13:50	#31
csentil Senior - BHPian Join Date: Feb 2007 Location: Bangalore Posts: 1,349 Thanked: 38 Times View My Garage	kgrajiv: Makes sense. I have done the same thing. I went in with SBI a year back. If you have all documents its better to go to the Nationalized banks. One of the reasons being they don't raise their interest rates as fast as the other banks and they also don't take immediate action like other banks. They are also more interested in reducing their liabilities also. So typically very less or no partial prepayment charges with them. ICICI is out to fleece people and I'm sorry to say that their loan department is pathetic. We had a huge thread here about ICICI and I've also dealt with them. As a bank ICICI is terrific, but not on the loans front.
	() Thanks

25th October 2007, 08:55	#32
kgrajiv Newbie Join Date: Oct 2007 Location: Bangalore Posts: 5 Thanked: 0 Times	I agree it takes few days more to reach out to nationalized banks for loans. But I feel the effort is worth since the money you save is on higher side. I was told some banks pvt bank charges 500 rs. (I see it is very small) for changing the PDCs. What stupidity , there should be some good reason to charge customers not like this. Anyway I have gone ahead with Indian bank and they will take 5 days to process. Let us see how it goes
	() Thanks

27th October 2007, 00:38	#33
shatrughna BHPian Join Date: Oct 2007 Location: Mumbai Posts: 894 Thanked: 68 Times	Good luck kgrajiv. I had gone to a car dealer merely to enquire about few options and got to meet a guy from Kotak bank. the rack rate 13.75% he offered and 4% payback. If I inbuild the payback then overall roi- for tenures upto 3 years( on loans below 6 lacks)- he offered 10.5 % and above 3 years-10.75%, but prepayment charges - 5% and I walked back. I was also facing similar dilemma whether to go for a loan or not with such heavy preclosure penalty. I am considering to approach SBI/UTI now. SBI may also come with some bumper offers for car and home loans in the year end/ new year bonanza but its so difficult to wait for so long. Please, share your experience with Indian Bank once the deal is through.
	() Thanks

27th October 2007, 08:04	#34
iridium BHPian Join Date: Oct 2007 Location: Bangalore Posts: 101 Thanked: 10 Times	I bought a Swift VDI last month and took a loan from Corporation Bank, Bangalore. Interest rates are 11.5% for 5 years. EMI per month per lak is Rs. 2196.xx No preclosure penalty and no part payment restrictions. On making partpayments, the tenure reduces. Only Nationalised banks seem to offer the following: 1. No preclosure penalty 2. No part payment restrictions 3. Close loan anytime. However the time taken to get loan approval/disbursal can vary from a week to two weeks. In my case it was 8 days and I had to follow up with the Bank manager almost on a daily basis. I also had to pay processing fees of 1% and stamp paper charges of Rs. 660. With the kind of interest rndsoft1 has got, one can run the loan for the entire term. Why preclose. Always look for EMI per month per lakh and then compute the total interest that would be paid over the term of the loan and then compute the simple interest. Don't go by the interest rate percentages quoted. That can be misleading. Also private banks have something called "Advance" and "Arrears". In "Advance", one EMI is taken at the time of sanctioning the loan itself. The interest rate maybe upto .25% lesser in this case. So if the actual tenure is 60 months, one ends up paying only for 59 months since one EMI would have already been taken in advance. In arrears, the entire EMI would need to be paid. One more thing to note: 1. Private banks - If the loan is disbursed after the 20th of a month, then the first EMI kicks in one month later. If the loan is disbursed within the 20th of a month, then the first EMI starts in the first week of the succeeding month. 2. Nationlised banks - The bank manager has the flexibility to start the first EMI (and the subsequent EMIs will follow suit) within 30 days of the loan disbursement. So you can talk to them and ask them to start it exactly on the 30th day after the loan disbursement. In my case, Corporation Bank asked me to sign on Form 29 and 30 and give it to them. They wanted it as a lein in case I default on the payment. This is almost like selling the car even before I buy it. They also wanted all receipts (for the money paid) and copies of RC book, insurance !. Regards Ravi.
	() Thanks

14th November 2007, 18:05	#35
kgrajiv Newbie Join Date: Oct 2007 Location: Bangalore Posts: 5 Thanked: 0 Times	Shatrughna, my loan is through at Indian bank. Good part is they were very receptive and flexible. For instance they had a gaurantor clause which they din't streess weaived off with verble referal. Overall the processing time is the only catch as it took a week to process completely. My vehicle delivery was also due in a week so no much of a problem for me. My final EMI was Rs. 12930 for 6 lacs loan with 5 years duration. No pre- payment and pre-closure charges. No need for any PDC deposits. Payment can be done through direct debit facility. I feel it is just you need to do couple of visits to PSU Banks otherwise their CS is better then these ICICI and HDFC banks.
	() Thanks

15th November 2007, 17:36	#36
swageo BANNED Join Date: Nov 2007 Location: Bangalore Posts: 323 Thanked: 31 Times	SBI offers 11.00% for 3 yrs and 11.25% for 5 yrs. 2% for pre-closure before half the tenure. No advance EMI payment and things are very transparent
	() Thanks

15th November 2007, 19:00	#37
dadu Senior - BHPian Join Date: May 2007 Location: Bangalore Posts: 3,803 Thanked: 462 Times View My Garage	ICICI bank is offering an EMI of 22,600/- for 3 years and 15,300/- for 5 years on a loan amount of 7,00,000/- with 1 advance EMI for each and 4% pre-closure. Processing charges 3,450/-. Is there a reverse calculator available for calculating the %ages with these details. Please post links.
	() Thanks

23rd November 2007, 13:58	#39
s0uljah Senior - BHPian Join Date: Feb 2006 Location: BLR Posts: 2,222 Thanked: 26 Times View My Garage	Need to start the loan process again, I had finalized with HDFC around 6 months back but then scrapped the idea of purchasing the vehicle altogether. Reasons for opting for HDFC is that we currently have 3 auto loans going on with them(company vehicles) so I assume it gives me some leverage (100% finance, decent rate). Any other options you guys suggest? Would be finalizing in the next day or so.
	() Thanks

26th November 2007, 22:18	#40
philjo BHPian Join Date: Mar 2007 Location: Bangalore Posts: 36 Thanked: 3 Times	@s0uljah, finally I decided to go with SBI and submitted my papers today.
	() Thanks

29th November 2007, 11:29	#42
Holyghost BHPian Join Date: Oct 2007 Location: Bangalore Posts: 593 Thanked: 1,129 Times	Which bank???? Hi I'm looking for loan for an amount of 6 - 7 Lakhs.... Can I know which bank provides partial prepayment option?
	() Thanks