SBI cuts home, car and retail loan rates

dadu · 11th October 2007, 10:34

Mumbai October 10, 2007

Quote:

State Bank of India (SBI) today announced a reduction in interest rates on various retail loans as well as loans for transport operators and farm mechanisation.

As part of the festive season offer, the bank has reduced interest rates on all new home loans, car loans, two-wheeler loans and personal loans. Home loans are now cheaper by 0.50% to 1% depending on loan maturities and the amount of loan. The bank is also offering a discount if the borrower has a salary account with it and a further discount if a higher margin is available.

Interest rates on new car and two-wheeler loans have been reduced by up to 1% depending on the amount and maturity of loan. New car loans are now available at 11% to 12% depending on the loan amount, maturity and type. Similarly, personal loans are now cheaper by 0.50% to 1%. In addition, the bank is offering 50% concession in processing charges on all personal segment loans.

For small road transport operators in the SME sector, the bank has reduced interest rates by 1% to 2% and the applicable rates will now be in the range of 10% to 12.25% for various loan maturities.

The festival offer is also extended to farm mechanisation loans (tractors, power tillers, combine harvesters, etc.) by a reduction in interest rates ranging from 1% to 2% with immediate effect.

The proposed rates are applicable for all new loans sanctioned on or after October 8, 2007 and are valid up to December 31, 2007.

Source

akroy · 11th October 2007, 11:28

Also there is decrease in AutoLoans by 0.75%, came in today's TOI Auto section...

Abhi

shatrughna · 11th October 2007, 11:48

yepp I read it too and the thing is that it will take time to reach DSAs and hence, wait till weekend to sign on the dotted line. Got in touch with HDFC guys at Andheri Mumbai, they too are anticipating some decision this week on revisions. So things are brightening up. And you may have seen an article on the excise duty rates too for mid segment- to be brought down from 24 % to 16 % and would mean approx. 80K for a car costing 10lakhs . any concrete info on this would be welcome. look out for Skoda and Toyota and Honda. Skoda incidentally is the fastest manufacturer as per my experience to revise rates in view of these changes.
Surprising part is that the prices of dollars v/s rupee doesnt seem to have impacted the prices as yet.
come on team .. push a lil bit more..I guess this forum of like minded people can make a lot of difference. Any views? welcome.

dadu · 11th October 2007, 11:54

1% if I can quote my own post.

Quote:

Interest rates on new car and two-wheeler loans have been reduced by up to 1% depending on the amount and maturity of loan. New car loans are now available at 11% to 12% depending on the loan amount, maturity and type.

Quote:

Originally Posted by akroy

Also there is decrease in AutoLoans by 0.75%, came in today's TOI Auto section...

Abhi

abbey4u · 26th October 2007, 14:38

I got a quote from SBI people. Current inte rate is 11.25%. 0.25% is the processing fee.
Other Benefits:
- Part Prepayment is allowed after 1 year without any charges.
- Full Prepayment is allowed after half the tenure without any charges.
- Optional cover on Loan (Your family member would not be liable to pay in case of ur death). Its 95 rs PM for a loan of 7L for 5 years.

All in all this is the best deal available in the market today

csentil · 26th October 2007, 15:03

Quote:

Originally Posted by abbey4u

I got a quote from SBI people. Current inte rate is 11.25%. 0.25% is the processing fee.
Other Benefits:
- Part Prepayment is allowed after 1 year without any charges.
- Full Prepayment is allowed after half the tenure without any charges.
- Optional cover on Loan (Your family member would not be liable to pay in case of ur death). Its 95 rs PM for a loan of 7L for 5 years.

All in all this is the best deal available in the market today

Yes. Its a good deal. I took a car loan from SBI for 9.75% last year. All other conditions were the same. No "PRE-EMI", 4% penalty nonsense in SBI.

thefreak · 26th October 2007, 17:37

Seriously. The upfront paper work may be more but the other things are good for SBI.

I made the mistake of not taking up SBI. Now I regret.

harjeev · 27th October 2007, 16:23

I have finalised PSB @ 11.25%. The good thing is that they are prepared to give 90% on the on road price. The filing charges are very nominal though I do not remember the exact amount. The best thing is that no pre payment charges. The only bad thing is the tons of paperwork that has to be managed by yourself. But all in all its a good option that should be considered is the paperwork can be managed

Sahil · 27th October 2007, 16:39

harjeev, the rate you got is high... just sealed the deal with HDFC @ 9.6%, infact was offered 9.3% from ICICI but i did not take it due to my long term relation with HDFC.

1000Horses · 27th October 2007, 16:39

yes, sbi seems to be best bet for loans. I got mine on the same rates and terms. Took 5-6 days but I made only 2 visitis to bank, once for form and next for paper signing. If you have all the documents, i dont think there any hassel in getting through.

dadu · 27th October 2007, 17:28

That is quite low

, whats your loan amount and term ?? and for which car ??

Quote:

Originally Posted by Sahil

harjeev, the rate you got is high... just sealed the deal with HDFC @ 9.6%, infact was offered 9.3% from ICICI but i did not take it due to my long term relation with HDFC.

rkg · 27th October 2007, 19:31

in case private banks what one sees on paper is not what one gets. ICICI, HDFC etc will collect one EMI immediately, not after one month like PSU banks. so if one is taking one lakh loan and has to pay 3000 EMI, bank will collect one EMI imm, so actually they are giving a loan of Rs 97000 but charging interest for one lakh. calculate for full term one will see the difference.
one more thing is they calculate either annual rests( HDFC usually does this) or montlhy rests.
if one says he is not willing to pay upfront EMI either the rate will change or EMI amount will change.
9.6% form HDFC seems too true to believe. it may be flat rate or if it is not, it is very good deal esp if there is no upfront EMI

harjeev · 27th October 2007, 21:30

Quote:

Originally Posted by dadu

That is quite low

, whats your loan amount and term ?? and for which car ??

the loan amount is 7.50 lacs and the tenure is 5 years with no advance EMI. the bank had offered 90% on the on-road price, that no other private bank offers. Loan is for the Tata Safari Dicor 2.2

Sahil · 29th October 2007, 14:51

Loan amount is 39lakhs on BMW 525d

thefreak · 29th October 2007, 15:13

39 Lakhs is a big sum. No wonder you were able to negotiate better rates!!

11th October 2007, 11:28	#2
akroy Senior - BHPian Join Date: Feb 2006 Location: San Francisco, CA, USA Posts: 2,423 Thanked: 85 Times View My Garage	Also there is decrease in AutoLoans by 0.75%, came in today's TOI Auto section... Abhi
	() Thanks

11th October 2007, 11:48	#3
shatrughna BHPian Join Date: Oct 2007 Location: Mumbai Posts: 894 Thanked: 68 Times	yepp I read it too and the thing is that it will take time to reach DSAs and hence, wait till weekend to sign on the dotted line. Got in touch with HDFC guys at Andheri Mumbai, they too are anticipating some decision this week on revisions. So things are brightening up. And you may have seen an article on the excise duty rates too for mid segment- to be brought down from 24 % to 16 % and would mean approx. 80K for a car costing 10lakhs . any concrete info on this would be welcome. look out for Skoda and Toyota and Honda. Skoda incidentally is the fastest manufacturer as per my experience to revise rates in view of these changes. Surprising part is that the prices of dollars v/s rupee doesnt seem to have impacted the prices as yet. come on team .. push a lil bit more..I guess this forum of like minded people can make a lot of difference. Any views? welcome.
	() Thanks

26th October 2007, 14:38	#5
abbey4u BHPian Join Date: Feb 2006 Location: New Delhi Posts: 463 Thanked: 118 Times View My Garage	I got a quote from SBI people. Current inte rate is 11.25%. 0.25% is the processing fee. Other Benefits: - Part Prepayment is allowed after 1 year without any charges. - Full Prepayment is allowed after half the tenure without any charges. - Optional cover on Loan (Your family member would not be liable to pay in case of ur death). Its 95 rs PM for a loan of 7L for 5 years. All in all this is the best deal available in the market today
	() Thanks

26th October 2007, 17:37	#7
thefreak BHPian Join Date: Aug 2007 Location: New Delhi Posts: 362 Thanked: 7 Times	Seriously. The upfront paper work may be more but the other things are good for SBI. I made the mistake of not taking up SBI. Now I regret.
	() Thanks

27th October 2007, 16:23	#8
harjeev Senior - BHPian Join Date: May 2006 Location: New Delhi Posts: 1,899 Thanked: 292 Times View My Garage	I have finalised PSB @ 11.25%. The good thing is that they are prepared to give 90% on the on road price. The filing charges are very nominal though I do not remember the exact amount. The best thing is that no pre payment charges. The only bad thing is the tons of paperwork that has to be managed by yourself. But all in all its a good option that should be considered is the paperwork can be managed
	() Thanks

27th October 2007, 16:39	#9
Sahil Distinguished - BHPian Join Date: May 2004 Location: Bombay Posts: 6,292 Thanked: 7,607 Times	harjeev, the rate you got is high... just sealed the deal with HDFC @ 9.6%, infact was offered 9.3% from ICICI but i did not take it due to my long term relation with HDFC.
	() Thanks

27th October 2007, 16:39	#10
1000Horses BHPian Join Date: Jan 2007 Location: Pune Posts: 129 Thanked: 21 Times View My Garage	yes, sbi seems to be best bet for loans. I got mine on the same rates and terms. Took 5-6 days but I made only 2 visitis to bank, once for form and next for paper signing. If you have all the documents, i dont think there any hassel in getting through.
	() Thanks

27th October 2007, 19:31	#12
rkg Senior - BHPian Join Date: Apr 2005 Location: bangalore Posts: 1,044 Thanked: 594 Times	in case private banks what one sees on paper is not what one gets. ICICI, HDFC etc will collect one EMI immediately, not after one month like PSU banks. so if one is taking one lakh loan and has to pay 3000 EMI, bank will collect one EMI imm, so actually they are giving a loan of Rs 97000 but charging interest for one lakh. calculate for full term one will see the difference. one more thing is they calculate either annual rests( HDFC usually does this) or montlhy rests. if one says he is not willing to pay upfront EMI either the rate will change or EMI amount will change. 9.6% form HDFC seems too true to believe. it may be flat rate or if it is not, it is very good deal esp if there is no upfront EMI
	() Thanks

29th October 2007, 14:51	#14
Sahil Distinguished - BHPian Join Date: May 2004 Location: Bombay Posts: 6,292 Thanked: 7,607 Times	Loan amount is 39lakhs on BMW 525d
	() Thanks

29th October 2007, 15:13	#15
thefreak BHPian Join Date: Aug 2007 Location: New Delhi Posts: 362 Thanked: 7 Times	39 Lakhs is a big sum. No wonder you were able to negotiate better rates!!
	() Thanks