[AvonA7]

@mobike800 : thanks for the information, shall keep this mind while negotiating with HDFC for my loan.

@Pavan kadam : I was told the same rate of interest as mentioned by @kiyon by HDFC. For a loan amt of Rs.250000/- @9.75% for 5yrs, EMI is 5281/- as told by HDFC bank representative. Checked in your excel sheet, its the same.
Can you please elaborate why you mentioned they are charging @19%. I am not too familiar with these calculations and this is the first ever am applying for any kind of loans. Thanks in advance.

[spadix]

Originally Posted by PAVAN KADAM

You are being taken for a ride, the reducing balance rate for you is @ 19% in this case.

I agree with you that there's no "fixed" rate of interest. It will be pegged against the SBI PLR (which is currently at 11.25% or thereabouts and set to rise).

However, we're talking about something like 2080-odd per lac over 5 years, which *is* around 9% by the Excel PMT function.

@AvonA7: Don't worry too much about the math behind this. Just use the PMT function in Excel (as done in Pavan's spreadsheet).

Regards,
spadix

[mobike008]

Originally Posted by spadix

Which HDFC branch is this? The best I've got right now is 2085/lac and full charges everywhere else, despite being a salaried a/c holder for 7 years. Of course, that's their first offer and I haven't started negotiating at all yet.

Let's wish each other luck!

Regards,
spadix

I have 3 HDFC bank accounts from 5+ years and a classic customer which means i get a personal banker who gave me a special offer of Rs.2060/Lakh and 50% off on processing fee.

Now its time to unleash my second weapon to reduce the rate even further which is use wifey's influence ( She is HDFC Bank Employee)

Originally Posted by AvonA7

For a loan amt of Rs.250000/- @9.75% for 5yrs, EMI is 5281/- as told by HDFC bank representative.

Use Carwale EMI calculator. Its the nearest to perfection. As per their calculation above is 10.15% and not 9.75%

EMI Calculator | Calculate Car Loan EMI - CarWale.com

Originally Posted by spadix

However, we're talking about something like 2080-odd per lac over 5 years, which *is* around 9% by the Excel PMT function.

Again as per carwale calculation, its roughly 9.5% and not 9%

[PAVAN KADAM]

Originally Posted by AvonA7

@mobike800 : thanks for the information, shall keep this mind while negotiating with HDFC for my loan.

@Pavan kadam : I was told the same rate of interest as mentioned by @kiyon by HDFC. For a loan amt of Rs.250000/- @9.75% for 5yrs, EMI is 5281/- as told by HDFC bank representative. Checked in your excel sheet, its the same.
Can you please elaborate why you mentioned they are charging @19%. I am not too familiar with these calculations and this is the first ever am applying for any kind of loans. Thanks in advance.

If its a new car loan the rates of interest are fine, i was calculating with Advance EMI in mind.

Personal loan rates are now never lesser than 16%.

[spadix]

Originally Posted by mobike008

I have 3 HDFC bank accounts from 5+ years and a classic customer which means i get a personal banker who gave me a special offer of Rs.2060/Lakh and 50% off on processing fee.

Again as per carwale calculation, its roughly 9.5% and not 9%

Hmm - I should talk to my PB too. Right now the poor bloke's having trouble getting my older account closed .

I think having multiple A/Cs is good in this case. I always transfer accounts and close the old one when I shift locations. Even though I quoted my customer ID number, the loans guy (not the PB) was very happy to note down the individual A/C #s of all the accounts. One reason I can think of is they can track the statements/balances across all accounts instead of just the latest one only.

Regarding the small difference with Carwale calculation it could be because of EMI in arrears vs. EMI in advance. For instance, AvonA7's numbers (9.75%, 60 months, 5281 EMI, 250000 loan amount) match up exactly in Excel's PMT, which however considers payment in arrears. Sorry for getting into technical details here . This just reinforces the common thought that at the end of the day all that matters is the EMI/lac and not the quoted interest rate, which can be easily fudged.

Regards,
spadix

[mobike008]

Originally Posted by spadix

This just reinforces the common thought that at the end of the day all that matters is the EMI/lac and not the quoted interest rate, which can be easily fudged.Regards,spadix

Absolutely. What matters for us is "how" much total amount/interest you pay after entire tenure of loan.

This can be done with simple calculation as below :-

EMI/Lakh X No.of Lakhs X Tenure Months = X Amount

X Amount-Loan Amount = Interest Amount

Let these sales folks trick you in whatever way, just use the EMI/Lakh quoted and calculate the above and choose the bank where the " Interest Amount" is the lowest

[mobike008]

Update:

After a lot of twisting arms and a few legs too. I got the best quote as follows :-

EMI/Lakh ( 5 years tenure) : Rs.2050/Lakh
Interest Rate : 8.75%
Processing Fee : Waived Off...Usually its 0.5% of loan amount.

I think this is the best rate in market for car loan. Has anyone got a better one than this rate? Please let me know as i am finalizing in a couple of days.

Cheers!

[slipstream]

mobike : that sounds like a super sweet deal. Could you share the details of the bank branch in Hyderabad where you were able to swing this deal ?
I was speaking to a senior official in HDFC Bank Chennai just yesterday who quoted 10.25% as the rack rate, 9.75% as the current regular rate on offer and a special rate of 9.25% for HDFC Bank employees (but with 100% funding on ex-showroom price). The info would be very useful.

[spadix]

Originally Posted by slipstream

mobike : that sounds like a super sweet deal. Could you share the details of the bank branch in Hyderabad where you were able to swing this deal ?

+1. Given that HDFC has just two days back increased my privilege level even further , I have all the more reason to bargain beyond the latest they have offered me.

Excellent work, mobike008! I'm sure this can't be beat by another bank. I may be stating the obvious but please ensure that they aren't hitting you in any other way (ballooning EMIs, higher foreclosure penalties, contingency clauses regarding insurance provider etc.).

Regards,
spadix

[Dieseling]

Whoa !! Super sweet deal. HDFC is quoting me 9.5% and trying to hike it further by saying that interest have risen recently. I'm trying to negotiate for 9.25% as i'm a classic privileged customer having a private banker. Request you to please let us know which bank is this and how did you manage to pull this off

Originally Posted by mobike008

Update:

After a lot of twisting arms and a few legs too. I got the best quote as follows :-

EMI/Lakh ( 5 years tenure) : Rs.2050/Lakh
Interest Rate : 8.75%
Processing Fee : Waived Off...Usually its 0.5% of loan amount.

I think this is the best rate in market for car loan. Has anyone got a better one than this rate? Please let me know as i am finalizing in a couple of days.

Cheers!

[mobike008]

Originally Posted by slipstream

mobike : that sounds like a super sweet deal. Could you share the details of the bank branch in Hyderabad where you were able to swing this deal ?
I was speaking to a senior official in HDFC Bank Chennai just yesterday who quoted 10.25% as the rack rate, 9.75% as the current regular rate on offer and a special rate of 9.25% for HDFC Bank employees (but with 100% funding on ex-showroom price). The info would be very useful.

I am a privlege customer was HDFC for over 5 years and have multiple accounts with them. My Wife works for HDFC bank in a mid-management level.

All of above accounted plus i have negotiated hard for what they offered. Only that they asked me to take their insurance product and again quoted an amazing price which cannot be matched by anyone else.

I am dealing with HDFC Ranigunj branch and i would not like to quote any names as its a special offer for me and i wouldnt want to jeopardize it by providing any references. Hope you get my point.

Best part i have a 12-lakh auto loan pre-approved ( though, i need only 7 or 8 lakhs auto loan) and they didnt even ask for lot of documents. I just provided the following

1 Photograph
Pancard copy
Home telephone bill

Originally Posted by spadix

+1. Given that HDFC has just two days back increased my privilege level even further , I have all the more reason to bargain beyond the latest they have offered me.

Excellent work, mobike008! I'm sure this can't be beat by another bank. I may be stating the obvious but please ensure that they aren't hitting you in any other way (ballooning EMIs, higher foreclosure penalties, contingency clauses regarding insurance provider etc.).

Regards,
spadix

All those points checked. Flat 2050/lakh for 5 years and no processing fee and 3 percent if foreclosed before 24 months and 2 percent if foreclosed after 24 months.

Originally Posted by Dieseling

Whoa !! Super sweet deal. HDFC is quoting me 9.5% and trying to hike it further by saying that interest have risen recently. I'm trying to negotiate for 9.25% as i'm a classic privileged customer having a private banker. Request you to please let us know which bank is this and how did you manage to pull this off

All details provided above. It depends on your history with bank and how you negotiate. Try the other bank offering better rate trick and it works as it did in my case to some extent. Goodluck !

[f1head]

Slightly offtopic : What is privilege level ? , my whole family has been preferred customers for more than 5-6 years now with huge deposits parked with them. My mom has a pretty huge pre approved loan offer HDFC and we have a fully paid up loan of 5 lakhs previously with HDFC with no default.

Even then I couldnt get my branch manager (I dont deal with a RM, directly with the branch manager due to years of business) to get this deal, he said its virtually impossible to get this deal even for himself let alone for a customer.

His rationale was a lot of funds with HDFC Bank are currently at> 9% interest due to higher FD rates 2 years ago, so there is no way bank will give money for a loss at 8.75% that too for a consumer loan.

I would say you have got a pretty good deal . Please get all terms in writing and the fact that its a fixed interest loan.

[SafeDrive]

Originally Posted by mobike008

Use Carwale EMI calculator. Its the nearest to perfection. As per their calculation above is 10.15% and not 9.75%

EMI Calculator | Calculate Car Loan EMI - CarWale.com

The most accurate way to calculate EMI would be by using the formula "=PMT" in Excel. Excel itself will help you on this. All you need is the amount, interest and the tenure.

[mobike008]

Originally Posted by f1head

His rationale was a lot of funds with HDFC Bank are currently at> 9% interest due to higher FD rates 2 years ago, so there is no way bank will give money for a loss at 8.75% that too for a consumer loan.

I would say you have got a pretty good deal . Please get all terms in writing and the fact that its a fixed interest loan.

I am not sure about deposit rates but, fact remains i have a deal for Rs.2050/Lakh for 5 year tenure which works out to 8.75% fixed for a loan of 8 Lakhs for the car that i am purchasing.

Thanks for the suggestion, i will ensure all points are properly mentioned before i sign the dotted line.

Originally Posted by SafeDrive

The most accurate way to calculate EMI would be by using the formula "=PMT" in Excel. Excel itself will help you on this. All you need is the amount, interest and the tenure.

More than % i am keen on going with amount/lakh.

I applied for my loan on Friday and today morning i got a verification call and hopefully by tomorrow it should get approved

[mobike008]

Originally Posted by mobike008

I applied for my loan on Friday and today morning i got a verification call and hopefully by tomorrow it should get approved

I just got an SMS from HDFC bank that my car loan got approved.

That's indeed speedy work without "full" documents