Loan query - is this loan deal OK (From HDFC)

MaxX · 28th August 2010, 14:48

Surprised to see such high interest rates over here. We got our Laura (took 11 lakhs loan) at 8.5% for 3 years from HDFC Bank last week. No negotiation required.. Even got a good discount on processing fees due to having accounts with them.

echo77 · 28th August 2010, 15:38

I updated the above Car loan against FD thread with some calculations w.r.t the current situation/offers. http://www.team-bhp.com/forum/indian...ml#post2046178

@MaxX: Do you have a large and premium relationship with the bank? I've seen those rates offered only in such cases. Current base interest rates are around 10-10.5%. They are likely to increase.
Only SBI Ezee/Advantage car loan has interest rate of 8%, 10%, 10%, 11.5%. 11.5% fixed for 5 years, offer valid upto Sept/30th 2010.

MaxX · 28th August 2010, 16:05

Quote:

Originally Posted by echo77

@MaxX: Do you have a large and premium relationship with the bank? I've seen those rates offered only in such cases. Current base interest rates are around 10-10.5%. They are likely to increase.
Only SBI Ezee/Advantage car loan has interest rate of 8%, 10%, 10%, 11.5%. 11.5% fixed for 5 years, offer valid upto Sept/30th 2010.

While we got discount on processing fee due to premium relationship, but these rates are applicable for everyone.. as even the skoda dealer was quoting similar rates. 8.5% for 3 years and 8.75% for 5 years.

echo77 · 28th August 2010, 16:53

Quote:

Originally Posted by MaxX

While we got discount on processing fee due to premium relationship, but these rates are applicable for everyone.. as even the skoda dealer was quoting similar rates. 8.5% for 3 years and 8.75% for 5 years.

That is strange... what is your EMI per lakh?

saabasheer · 28th August 2010, 23:28

Quote:

Originally Posted by rki2007

I had taken qoutes from all the dealers of Tata Motors for Manza. No dealer is ready to give the loan rate less than 10.25%. I don't know how other car owners get 8.75% or 9.5%. Can anyone please expalin on this. Or should i try out self for a car loan by approaching the bank directly rather than going through a dealer.

Dealers always quoting 1.5 to 2 % higher than the normal rates.. Recently for Xylo i got a quote of 11.5 to 11.75% from the dealer.. But i have directly approached the bank and got it approved for 9.5%.

rki2007 · 29th August 2010, 08:53

I have have also planned directly to approach the bank people only for a loan. The dealers just try to loot you if you are ignorant.When a customer comes to know things then their way of approaching and talking is itself different.

MaxX · 29th August 2010, 10:20

Quote:

Originally Posted by echo77

That is strange... what is your EMI per lakh?

Don't remember now, but the rate of 8.5% for 3 years has been applied correctly. We got it done from the bank directly. Even on the previous page here a cruze was bought at 8.75% interest for 5 years (we were also quoted 8.75% for 5 years). I guess lower value cars/loans have higher interest rate. Nothing "strange" about it..

u_chill · 31st August 2010, 20:16

I finally got my car last week with a full cheque payment, thanks to a series of bunglings by HDFC on the "pre-approved" car loan. I do not hold a major grudge against them, since they were the best deal available for a small car at 10%, and 50% discount on processing fee. However they took over a week when my k10 was already with the dealership awaiting delivery. Here's what happened over a Thursday:

I finally sign the loan agreement with HDFC on Thursday morning after a week long wait and vague verification calls from unknown numbers. They are expected to hand over the form 20 to the dealership on the same morning. In the afternoon I get a call from the dealership telling me that my car has been ready for delivery for over a week now, and in case I cannot assure the payment in a day, they will allot the car to the next person on the now 2 month long waiting list for the k10. The Bank has not gotten in touch with them.

I shoot a mail to the Bank asking them to complete the transaction in next 2 hours, failing which I would like to cancel my loan application. True to style, I get a call from a clueless officer from the Bank after 2 hours inquiring of yet another procedural issue...he wanted to know if I can issue my cheque from another HDFC account that I hold, since the pre-approved loan is linked to that account. On hearing this, I ask them to cancel my loan application, and please hand over all signed cheques and docs within 24 hours.

All hell breaks lose, I get calls from some so called regional managers. Again I politely explain the situation, and ask that the loan application be canceled (by now I have also used the super efficient HDFC online banking facility to move funds from FD to savings). A lot of "sorry for the inconveniences" later, the regional manager realizes I am not going to budge, and states that he will cancel the application.

Within 30 mins the head of my dealership gets a call from the same regional manager stating that I have asked to proceed with the loan! More magic ensures that my application went from still vague to sanctioned in 10 minutes flat!

I stick to my guns, and ask the dealership to not entertain HDFC, made the payment and got my car the very next day. Phew! I rest my case

RemingtonSteele · 1st September 2010, 12:00

Quote:

Originally Posted by u_chill

I finally got my car last week with a full cheque payment, thanks to a series of bunglings by HDFC on the "pre-approved" car loan.

All hell breaks lose, I get calls from some so called regional managers. Again I politely explain the situation, and ask that the loan application be canceled (by now I have also used the super efficient HDFC online banking facility to move funds from FD to savings).

I stick to my guns, and ask the dealership to not entertain HDFC, made the payment and got my car the very next day. Phew! I rest my case

Congrats for the New Car Purchase.
But I still think opting for Over Draft over those FD's would have been the best option for you instead of liquidating those FD's.
Anyway, enjoy your new car and drive safely.

u_chill · 2nd September 2010, 16:33

Quote:

Congrats for the New Car Purchase.
But I still think opting for Over Draft over those FD's would have been the best option for you instead of liquidating those FD's.
Anyway, enjoy your new car and drive safely.

Thanks. Safety always comes first

.

I chose to go all cheque for some specific reasons. However for the benefit of others on this thread, I also concur that the overdraft facility on FDs, or loan against asset such as gold or shares is a better option to finance a depreciating asset like a car. You may save just couple of percentage points, however also remember that there would be no long drawn verification process involved.

mobike008 · 2nd September 2010, 16:51

Quote:

Originally Posted by MaxX

Don't remember now, but the rate of 8.5% for 3 years has been applied correctly. We got it done from the bank directly. Even on the previous page here a cruze was bought at 8.75% interest for 5 years (we were also quoted 8.75% for 5 years). I guess lower value cars/loans have higher interest rate. Nothing "strange" about it..

You must be referring to me as the Cruze buyer who got 8.75%.

It was not easy to get this rate. Had to haggle with them a bit and ward of their last minute fixes to squeeze more money out of me etc.

Update as on today, car loan interest rates have become dearer by almost 0.75 basis points.

Keyur Shah · 28th December 2020, 13:07

It's a good option depending on your circumstances, do keep in mind that it only makes sense to start considering a loan as an option only if you have already established the need to purchase a car and have the income to comfortably afford it.

I had financed my car (Hyundai i10) through HDFC in 2008 as a pre-approved customer got a better deal and overall it was a hassle-free process and extrmely customer-oriented. These are just my views and experience based on my dealing with them 12 years ago.

SideView · 28th December 2020, 13:22

Quote:

Originally Posted by Keyur Shah

It's a good option depending on your circumstances, do keep in mind that it only makes sense to start considering a loan as an option only if you have already established the need to purchase a car and have the income to comfortably afford it.

I had financed my car (Hyundai i10) through HDFC in 2008 as a pre-approved customer got a better deal and overall it was a hassle-free process and extrmely customer-oriented. These are just my views and experience based on my dealing with them 12 years ago.

Welcome to teambhp Keyur, it is an old thread buddy.

Do check the dates before responding. But no harm in adding your valid inputs. (Once mods close it we anyhow cannot respond)

Cheers.

28th August 2010, 14:48	#91
MaxX BHPian Join Date: Jun 2007 Location: Pune Posts: 34 Thanked: 0 Times	Surprised to see such high interest rates over here. We got our Laura (took 11 lakhs loan) at 8.5% for 3 years from HDFC Bank last week. No negotiation required.. Even got a good discount on processing fees due to having accounts with them. Last edited by MaxX : 28th August 2010 at 14:55.
	() Thanks

28th August 2010, 15:38	#92
echo77 BHPian Join Date: May 2010 Location: goa Posts: 359 Thanked: 116 Times View My Garage	I updated the above Car loan against FD thread with some calculations w.r.t the current situation/offers. http://www.team-bhp.com/forum/indian...ml#post2046178 @MaxX: Do you have a large and premium relationship with the bank? I've seen those rates offered only in such cases. Current base interest rates are around 10-10.5%. They are likely to increase. Only SBI Ezee/Advantage car loan has interest rate of 8%, 10%, 10%, 11.5%. 11.5% fixed for 5 years, offer valid upto Sept/30th 2010. Last edited by echo77 : 28th August 2010 at 15:44.
	() Thanks

29th August 2010, 08:53	#96
rki2007 BHPian Join Date: Nov 2009 Location: Bangalore Posts: 670 Thanked: 142 Times	I have have also planned directly to approach the bank people only for a loan. The dealers just try to loot you if you are ignorant.When a customer comes to know things then their way of approaching and talking is itself different. Last edited by rki2007 : 29th August 2010 at 08:54. Reason: spelling mistakes
	() Thanks

31st August 2010, 20:16	#98
u_chill BHPian Join Date: Nov 2006 Location: Bangalore Posts: 100 Thanked: 2 Times	I finally got my car last week with a full cheque payment, thanks to a series of bunglings by HDFC on the "pre-approved" car loan. I do not hold a major grudge against them, since they were the best deal available for a small car at 10%, and 50% discount on processing fee. However they took over a week when my k10 was already with the dealership awaiting delivery. Here's what happened over a Thursday: I finally sign the loan agreement with HDFC on Thursday morning after a week long wait and vague verification calls from unknown numbers. They are expected to hand over the form 20 to the dealership on the same morning. In the afternoon I get a call from the dealership telling me that my car has been ready for delivery for over a week now, and in case I cannot assure the payment in a day, they will allot the car to the next person on the now 2 month long waiting list for the k10. The Bank has not gotten in touch with them. I shoot a mail to the Bank asking them to complete the transaction in next 2 hours, failing which I would like to cancel my loan application. True to style, I get a call from a clueless officer from the Bank after 2 hours inquiring of yet another procedural issue...he wanted to know if I can issue my cheque from another HDFC account that I hold, since the pre-approved loan is linked to that account. On hearing this, I ask them to cancel my loan application, and please hand over all signed cheques and docs within 24 hours. All hell breaks lose, I get calls from some so called regional managers. Again I politely explain the situation, and ask that the loan application be canceled (by now I have also used the super efficient HDFC online banking facility to move funds from FD to savings). A lot of "sorry for the inconveniences" later, the regional manager realizes I am not going to budge, and states that he will cancel the application. Within 30 mins the head of my dealership gets a call from the same regional manager stating that I have asked to proceed with the loan! More magic ensures that my application went from still vague to sanctioned in 10 minutes flat! I stick to my guns, and ask the dealership to not entertain HDFC, made the payment and got my car the very next day. Phew! I rest my case
	() Thanks

28th December 2020, 13:07	#102
Keyur Shah BANNED Join Date: May 2020 Location: Ahmedabad Posts: 17 Thanked: 2 Times	Re: Loan query - is this loan deal OK (From HDFC) It's a good option depending on your circumstances, do keep in mind that it only makes sense to start considering a loan as an option only if you have already established the need to purchase a car and have the income to comfortably afford it. I had financed my car (Hyundai i10) through HDFC in 2008 as a pre-approved customer got a better deal and overall it was a hassle-free process and extrmely customer-oriented. These are just my views and experience based on my dealing with them 12 years ago.
	() Thanks