[spadix]

Originally Posted by sumobom4

Or do they consider specific cases like mine? Please advise, as I want to be clear about this before I start contacting various DSAs.

I'm in a very similar situation, but the banks I've spoken to (Andhra Bank, HDFC) have no issues with this.

Income gap because of higher education is not a concern. What the banks are looking for is liquidity and solvency. Your capacity to earn money (and pay off the EMIs) is a major factor in deciding these, and if anything, higher education only helps in the long term. The details of past jobs only add confidence to this metric.

Regards,
spadix

[manishverma0675]

Originally Posted by inder_s1

Hi Guys,

I got a loan at 10.25% for 3 years from AXIS BANK.

and they have been quick to dispatch the loan in 3 days.

Thats good Inder,looks like Axis bank is the way to go.I am also planning for a loan

[spadix]

Originally Posted by manishverma0675

Thats good Inder,looks like Axis bank is the way to go.I am also planning for a loan

Manish, that was in May 2008 - 2 years back (from Inder's post date) .

That said, Axis is still pretty competitive. The quote I got in late April 2010 was 9.5% for 5 years and the option to foreclose the loan at any time (fee applicable) plus somewhat lesser processing fees and faster processing. This was better than ICICI/HDFC who had similar/costlier rates and provided no foreclosing option.

Regards,
spadix

[passionforcars]

hi all,

i have a car loan from SBI. (@ Rs 4800/- for 7 years)

i have completed 20 installments. I checked up with the bank and my outstanding amount is about 2.25 lakhs.

Now i want to pay an amount upfront to reduce my EMI/ loan tenure ,say about 1.25 lacs.

Is it advisable?

if it is, which option should I go for? reduce the EMI or reduce my loan term?

or else ,should I invest this money some where else?

thanks

[Motoringlover]

Originally Posted by passionforcars

hi all,

i have a car loan from SBI. (@ Rs 4800/- for 7 years)

i have completed 20 installments. I checked up with the bank and my outstanding amount is about 2.25 lakhs.

Now i want to pay an amount upfront to reduce my EMI/ loan tenure ,say about 1.25 lacs.

Is it advisable?

if it is, which option should I go for? reduce the EMI or reduce my loan term?

or else ,should I invest this money some where else?

thanks

Hi Passionforcars,

It would be tough to part pay a car loan, but you have serveral options you may be able to work with -

- I would like to know what is the discount rate you have availed your older loan ( I am refering to interest rate here)

- Though not recommended, you may want to simply swapping your loan with a high cost debt (Say a personal loan) i am assuming your car loan is lower than peronsal loans (general case) , to give you a simple illustration, assuming you pay back 1.25 L.

Which would leave you 1L outstanding - (assuming no preclosure charges)
lets say you need a loan for the next 48 months.

your emi could look like this

@ 15% , 48 months , on a loan of 1L - Emi - 2783.07
@ 14% , 48 months , on a loan of 1L - Emi - 2732.65

(Better if you have access to a Pc with excel - use this formula to come up with the emi simulation)

=PMT((14%/12),48,100000,0)

(You can replace 14% with whatever rate you are getting, dont change the 12 - this is needed to convert annual to period rates)

(change the 48 to any time period in months for which you will avail the loan)

(Change the 1,00,000 for any different loan amount)

(dont change the zero)

- with regards to your question on investing, i don't know your risk appetite, but you can know more on investing options at moneycontrol.com

Best of luck


(my advice is stricly based on the question and the direct information available)

[passionforcars]

Originally Posted by Motoringlover

Hi Passionforcars,

It would be tough to part pay a car loan, but you have serveral options you may be able to work with -

- I would like to know what is the discount rate you have availed your older loan ( I am refering to interest rate here)

- Though not recommended, you may want to simply swapping your loan with a high cost debt (Say a personal loan) i am assuming your car loan is lower than peronsal loans (general case) , to give you a simple illustration, assuming you pay back 1.25 L.

Which would leave you 1L outstanding - (assuming no preclosure charges)
lets say you need a loan for the next 48 months.

your emi could look like this

@ 15% , 48 months , on a loan of 1L - Emi - 2783.07
@ 14% , 48 months , on a loan of 1L - Emi - 2732.65

(Better if you have access to a Pc with excel - use this formula to come up with the emi simulation)

=PMT((14%/12),48,100000,0)

(You can replace 14% with whatever rate you are getting, dont change the 12 - this is needed to convert annual to period rates)

(change the 48 to any time period in months for which you will avail the loan)

(Change the 1,00,000 for any different loan amount)

(dont change the zero)

- with regards to your question on investing, i don't know your risk appetite, but you can know more on investing options at moneycontrol.com

Best of luck


(my advice is stricly based on the question and the direct information available)

Thanks for the quick reply ML.

1. interest rate of car loan is 12%

2. the money with me right now is of a fixed deposit which got matured @ 9%

sorry for being ignorant, i didn't understand your third para..

[Motoringlover]

Originally Posted by passionforcars

Thanks for the quick reply ML.

1. interest rate of car loan is 12%

2. the money with me right now is of a fixed deposit which got matured @ 9%

sorry for being ignorant, i didn't understand your third para..

@ passionaforcars

Given you have the interest rate of 12% for a tenure of 7 years(84 months) you would have taken a loan of 2,71,912.58, i have calculated at 4800 rs of emi.

if you can afford paying the existing EMI. (entirely subjective - big assumption against my profession) , please continue to pay the EMI @ 4800/pm, refer to my spreadhseet for more info on this, i have created a schedule based on just a fixed deposit scenario, how you can make your existing investment help pay your loan off.

Refer to columns H through L.

Let me know if you have questions, all the best.

Best

[passionforcars]

Originally Posted by Motoringlover

@ passionaforcars

Given you have the interest rate of 12% for a tenure of 7 years(84 months) you would have taken a loan of 2,71,912.58, i have calculated at 4800 rs of emi.

if you can afford paying the existing EMI. (entirely subjective - big assumption against my profession) , please continue to pay the EMI @ 4800/pm, refer to my spreadhseet for more info on this, i have created a schedule based on just a fixed deposit scenario, how you can make your existing investment help pay your loan off.

Refer to columns H through L.

Let me know if you have questions, all the best.

Best

thanks,

but i cant see the referred columns in spreadsheet...

please help.

[Motoringlover]

Originally Posted by Motoringlover

@ passionaforcars

Given you have the interest rate of 12% for a tenure of 7 years(84 months) you would have taken a loan of 2,71,912.58, i have calculated at 4800 rs of emi.

if you can afford paying the existing EMI. (entirely subjective - big assumption against my profession) , please continue to pay the EMI @ 4800/pm, refer to my spreadsheet for more info on this, i have created a schedule based on just a fixed deposit scenario, how you can make your existing investment help pay your loan off.

Refer to columns H through L.

Let me know if you have questions, all the best.

Best

Please use this file, instead of the earlier one, i have corrected the formatting glitch.

Sorry for any inconvenience caused.

Best

[passionforcars]

Originally Posted by Motoringlover

Please use this file, instead of the earlier one, i have corrected the formatting glitch.

Sorry for any inconvenience caused.

Best

thank you very much ML.


will contemplate.

[SR-71]

I dint find any relevant query for the doubts I have, nevertheless let me post it (probably at the risk of being redundant). Supposing I want to book a car which has a waiting period of 6 months, when do I have to start applying for loan. Can I do it safetly after 4 months which definitely makes sense given the high amount of interest rate being charged currently or is it necessary that Iinitiate the loan processing for booking itself.

Basically what are the necessary things that I need to submit while booking and when do i have to settle the total amount - that will explain when I have to start the loan process. Also what are the documents needed for initiating a loan request. Appreciate your help on this.

[Motoringlover]

Originally Posted by SR-71

I dint find any relevant query for the doubts I have, nevertheless let me post it (probably at the risk of being redundant). Supposing I want to book a car which has a waiting period of 6 months, when do I have to start applying for loan. Can I do it safetly after 4 months which definitely makes sense given the high amount of interest rate being charged currently or is it necessary that Iinitiate the loan processing for booking itself.

Basically what are the necessary things that I need to submit while booking and when do i have to settle the total amount - that will explain when I have to start the loan process. Also what are the documents needed for initiating a loan request. Appreciate your help on this.

@SR-71 - I am not sure if you can lock into a forward rate agreement, I don't have enough info about it. It is normally assumed the interest at the time of purchase would be the rate.

Typically an auto loan would start when the vehicle is ready for delivery. The last time I had a conversation with sbi they told me they could complete the paperwork in about a weeks time. this was about years time.

Paperwork - it should be like any other loan. Proof of income, proof of residence, identity and bank related documents, credit reference check all the usual.

Hope the info was useful.

Best - ML

[Remo]

Hi all,

I have availed a car loan from Axis bank with a payment tenure of 3 years. Just wanted to know, whether the loan repayment will have 37 EMI or 36 EMI. I always though 3 years tenure should be 36 months.

But Axis bank call center people differ and say i have to pay 37 EMI.

They deducted one EMI while disbursing the loan. They also had taken one advance EMI cheque, which has also been en cashed before my repayment tenure, which starts next month on October 1st. Now i have 35 more EMI left out.

The loan sanctioned letter i have received says Loan dispersed as the total loan amount i applied for, but in reality the dealer gives me a bill for DD payment received form Axis Bank as total amount minus the first EMI.

Can anybody suggest accordingly?

[ubsmart]

Originally Posted by Remo

Hi all,


But Axis bank call center people differ and say i have to pay 37 EMI
They deducted one EMI while disbursing the loan. They also had taken one advance EMI cheque, which has also been en cashed before my repayment tenure, which starts next month on October 1st. Now i have 35 more EMI left out.


Can anybody suggest accordingly?

This is how private banks works unlike their PSU counterparts...they have an advance EMI which will be deducted even before the loan is disbursed..

[guptavis]

hello all, have a small query on behalf of a colleague at work.
the female is working as a counselor and has a salary of 12k per month. she wants to buy a tata nano std~ Rs 1,50,000. she is ready to pay ~30k down payment and 4-5k as EMI.
she says that all bank documents say that to be eligible for loan a minimum income of Rs 1 lakh per year is required, which she has. But when she approaches any agent they say loan is given at minimum salary of 25k per month. Is this true? then why do the companies write 1lakh/annum on official documents?