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Senior - BHPian ![]() | ![]() I'm planning to buy the Swift Zxi. I had the option of taking a loan from HDFC at 12%. Then my dad came up with the idea of taking a 5L loan on his FD. Guess the interest rate is just 9% in this case. With no pre-payment charges and pay-as-you-like, it sure is tempting. Anyone else has taken a car loan against an FD ? |
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BHPian Join Date: Aug 2008 Location: Bangalore
Posts: 602
Thanked: 34 Times
| ![]() Did your FD will earn interest during that period. I think not. See all terms and condition |
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Senior - BHPian ![]() | ![]() Quote:
But the good things about it are 1: No pre-payment charges 2: Pay as I like.. atleast with SBI, there aint EMIs and all. | |
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Senior - BHPian ![]() | ![]() Hi, Quote:
One way of getting cheaper loans is to take a loan against FD. Usually the interest charges would be 2% more than the interest rate you get for that FD. NO EMIs, no notices, and if your FD matures, they take whatever is due to them and give you the rest. | |
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Senior - BHPian ![]() | ![]() Quote:
The FD interest will be accumulated as it is. The amount is used only as a collateral, and will be taken by the bank in case I default. The FD is getting 9% interest rate, since my dad's in SBI the loan will also be charged at 9% and not the 2% higher thing. Sounds too good to be true actually ![]() | |
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![]() | #6 |
Senior - BHPian ![]() | ![]() Hi, Enjoy your low interest car loan! There are a few 'too good to be true' things left. This is one of them. I have used the loan from FD on several occasions. Of course with the +2% penalty! |
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BHPian | ![]() "I" bought OHC few months ago using this way... No issues at all. Your effective loan interest rate will be hardly 2% or so. ![]() |
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Team-BHP Support ![]() ![]() | ![]() Unsurprising since the banks risk is effectively zero. Good tip! |
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BHPian Join Date: Aug 2008 Location: Bangalore
Posts: 602
Thanked: 34 Times
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Senior - BHPian ![]() | ![]() Quote:
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BANNED ![]() Join Date: Sep 2004 Location: NCR
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| ![]() I have a related question. Supposing a person has 2-3 FDs with a Public Sector Bank. Now suppose he applies for a car loan in the same bank, but not necessarily loan against FD. Will the bank give any kind of preference and will it be easier to get the loan with minimum paperwork in that case to the customer? Last edited by DCEite : 26th December 2008 at 14:30. |
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BHPian ![]() | ![]() Say you took a loan of 5L against an FD of the same amount and paid religiously for a period of time and then defaulted... would the bank take the complete 5L or the value of the loan outstanding and return back the balance to you ? |
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BHPian Join Date: Aug 2008 Location: Bangalore
Posts: 602
Thanked: 34 Times
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Senior - BHPian ![]() Join Date: Jan 2008 Location: Mumbai
Posts: 1,220
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| ![]() Hi Fountainheader, Could you please elaborate the process of getting a car loan against FD? Do all banks (i.e. nationalized as well as pvt sector) have this scheme? I have FDs with ICICI bank. So effectively, one can have his FD secure with the bank, earning whatever interest it gets (currently 10.5%)? How does the repayment take place? What if the loan tenure exceeds the FD tenure? |
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Senior - BHPian ![]() | ![]() Hi, You can take only upto a percentage of the FD as loan, I don't remember the exact percentage. Quote:
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I have taken loan from my Canara Bank FD. I have no experience with FDs of other banks so far. Please be careful. Never take a loan from your LIC! Last edited by trrk : 26th December 2008 at 17:25. | |||
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