New Rate Of Interest For Car Loans

balugita · 13th January 2009, 19:23

TO-DAY I MADE AGREEMENT WITH BANK OF INDIA FOR MY i10 CAR
LOAN AMOUNT - 2.40 LAKHS
INTEREST RATE -10.25%
TERM - 36 MONTHS
EMI - 7773/-
NO ADVANCE EMI

PAPERS GIVEN LAST TWO YEARS IT SAREL COPY
ID PROOF & ADDRESS PROOF PAPER
WITH IN 48 HOURS THEY RELEASE THE DRAFT

IT IS CHEAP ? ANY ONE COMMENDS ON THIS?

BALUGITA
COIMBATORE

cheers:

BenjiRoss · 13th January 2009, 22:33

Seems pretty good because the general rate seems to 12-13% for cars these days.
Are there any other charges.
Is it fixed or floating?

balugita · 13th January 2009, 22:49

Quote:

Originally Posted by BenjiRoss

Seems pretty good because the general rate seems to 12-13% for cars these days.
Are there any other charges.
Is it fixed or floating?

it is floated
no hidden charges & any other charges

balugita
coimbatore

musicvj · 31st January 2009, 00:40

Thats a good rate. I'm also fishing, so far. Have asked rates from other banks, guess I will have more updates tomorrow.

HDFC = 12.75% Floating

hdi_pro · 31st January 2009, 09:31

Why dont you go for a central bank or Bank of Baroda

I am taking a "fixed" interest loan and interest rate is 10.5% only from Central bank

Atleast you will have the peace of mind that this interest rate will be constant throughtout the tenure.

-Hdi

musicvj · 31st January 2009, 10:51

"Fixed" rate always confuse me, doesn't it mean that you will pay interest for the whole amount rather than the diminished principle amount?

Isn't floating = diminishing loans?

If so fixed 10.5% is way too high, what is your EMI per lac?

musicvj · 31st January 2009, 11:42

Got a call from Reliance Finance.

Diminishing 100% finance Interest rate = 11.75

Guess 100% finance is on the ex showroom price? Does anyone know if it can be OTR 100% finance as well lol

Red Liner · 31st January 2009, 12:00

Musicvj:

As per my understanding:

Fixed Rate: A fixed rate of interest based on the principal amount your are borrowing. This rate will stay fixed during the entire tenure period of the loan. Thus the EMI will stay fixed.

FLoating Rate: A rate of interest that changes with the vagaries of the economic conditions that surround us.

If you're a gambler, go in for the floating rate. If you are totally risk averse, go for the fixed rate.

The concept you are talking about above is totally different and has nothing to do with fixed or floating interest rates.

HappyWheels · 31st January 2009, 12:14

The advice that I would give to anyone asking me about the loan process is to

- check the processing fee
- check the monthly payment
- check the tenure

With these facts calculate how much you end up paying for the loan you are taking. (I guess this is only for fixed interest charges).

This was, one does not get confused with all this diminishing principle and all the other jargon's these agents thrown in. Infact, when I was looking out for a loan, on 2005, I found that I payout lesser when I go with ICICI than with one other bank even though ICICI mentions a higher interest rate!

Quote:

Originally Posted by Red Liner

...
If you're a gambler, go in for the floating rate. If you are totally risk averse, go for the fixed rate...

dadu · 31st January 2009, 17:21

Most private banks will have processing charges built into the Advance EMI i.e. although the processing agent might say its Advance EMI, it consist of 2 parts processing charges + principal amount. For eg. if you pay 1 advance EMI of 10k, 6K will be deducted as charges (credit facility origination charges) and 4k as principal from the your loan amount.

Credit facility origination charges can go as high as 65-70% of your EMI.

If in doubt, check from the bank directly and not the agents.

nvldvr · 2nd May 2009, 23:34

Whats hdfc bank's rate of interest after all the recent rate cuts? Has Bank of Baroda's rate gone down from 10.5? I think thats the best one available as on date, right?

hdi_pro · 4th May 2009, 19:32

My Loan details with Central bank is as follows

Loan -10.5%(Floating rate
Prepossing fees - 2000
No Advanced EMI

Thanks
hdi.

nvldvr · 4th May 2009, 19:53

when did you take this loan? 10.5 % doesnt seem to be the current rate of interest.

ashokabs · 4th May 2009, 21:07

Quote:

Originally Posted by balugita

TO-DAY I MADE AGREEMENT WITH BANK OF INDIA FOR MY i10 CAR
LOAN AMOUNT - 2.40 LAKHS
INTEREST RATE -10.25%
TERM - 36 MONTHS
EMI - 7773/-
NO ADVANCE EMI

PAPERS GIVEN LAST TWO YEARS IT SAREL COPY
ID PROOF & ADDRESS PROOF PAPER
WITH IN 48 HOURS THEY RELEASE THE DRAFT

IT IS CHEAP ? ANY ONE COMMENDS ON THIS?

BALUGITA
COIMBATORE

cheers:

I think it is a very decent rate. I took a loan from HDFC as a preferred customer 2 months ago and I am getting 11.25% for a 3 year tenure. You might consider taking an insurance policy for around Rs. 3000 which will protect you against inability to pay emi in case of any of several reasons. Right now floating rate is recommended as interest rates are not expected to go up for the next 2 years - will certainly go down a bit.

Cheers

nvldvr · 5th May 2009, 09:59

Is this 3000 an annual premium? and how does this insurance on loan work?

13th January 2009, 19:23	#1
balugita Newbie Join Date: Jul 2007 Location: coimbatore Posts: 19 Thanked: 0 Times	New Rate Of Interest For Car Loans TO-DAY I MADE AGREEMENT WITH BANK OF INDIA FOR MY i10 CAR LOAN AMOUNT - 2.40 LAKHS INTEREST RATE -10.25% TERM - 36 MONTHS EMI - 7773/- NO ADVANCE EMI PAPERS GIVEN LAST TWO YEARS IT SAREL COPY ID PROOF & ADDRESS PROOF PAPER WITH IN 48 HOURS THEY RELEASE THE DRAFT IT IS CHEAP ? ANY ONE COMMENDS ON THIS? BALUGITA COIMBATORE cheers:
	() Thanks

13th January 2009, 22:33	#2
BenjiRoss Senior - BHPian Join Date: Jul 2008 Location: Tamilnadu Posts: 1,066 Thanked: 1,330 Times	Seems pretty good because the general rate seems to 12-13% for cars these days. Are there any other charges. Is it fixed or floating?
	() Thanks

31st January 2009, 00:40	#4
musicvj BHPian Join Date: Jan 2009 Location: Chennai Posts: 115 Thanked: 3 Times	Thats a good rate. I'm also fishing, so far. Have asked rates from other banks, guess I will have more updates tomorrow. HDFC = 12.75% Floating
	() Thanks

31st January 2009, 09:31	#5
hdi_pro BHPian Join Date: Jan 2009 Location: Noida Posts: 93 Thanked: 3 Times	Why dont you go for a central bank or Bank of Baroda I am taking a "fixed" interest loan and interest rate is 10.5% only from Central bank Atleast you will have the peace of mind that this interest rate will be constant throughtout the tenure. -Hdi
	() Thanks

31st January 2009, 10:51	#6
musicvj BHPian Join Date: Jan 2009 Location: Chennai Posts: 115 Thanked: 3 Times	"Fixed" rate always confuse me, doesn't it mean that you will pay interest for the whole amount rather than the diminished principle amount? Isn't floating = diminishing loans? If so fixed 10.5% is way too high, what is your EMI per lac?
	() Thanks

31st January 2009, 11:42	#7
musicvj BHPian Join Date: Jan 2009 Location: Chennai Posts: 115 Thanked: 3 Times	Got a call from Reliance Finance. Diminishing 100% finance Interest rate = 11.75 Guess 100% finance is on the ex showroom price? Does anyone know if it can be OTR 100% finance as well lol
	() Thanks

31st January 2009, 12:00	#8
Red Liner Distinguished - BHPian Join Date: Aug 2006 Location: Bangalore Posts: 5,209 Thanked: 18,044 Times	Musicvj: As per my understanding: Fixed Rate: A fixed rate of interest based on the principal amount your are borrowing. This rate will stay fixed during the entire tenure period of the loan. Thus the EMI will stay fixed. FLoating Rate: A rate of interest that changes with the vagaries of the economic conditions that surround us. If you're a gambler, go in for the floating rate. If you are totally risk averse, go for the fixed rate. The concept you are talking about above is totally different and has nothing to do with fixed or floating interest rates.
	() Thanks

31st January 2009, 17:21	#10
dadu Senior - BHPian Join Date: May 2007 Location: Bangalore Posts: 3,803 Thanked: 462 Times View My Garage	Most private banks will have processing charges built into the Advance EMI i.e. although the processing agent might say its Advance EMI, it consist of 2 parts processing charges + principal amount. For eg. if you pay 1 advance EMI of 10k, 6K will be deducted as charges (credit facility origination charges) and 4k as principal from the your loan amount. Credit facility origination charges can go as high as 65-70% of your EMI. If in doubt, check from the bank directly and not the agents. Last edited by dadu : 31st January 2009 at 17:35.
	() Thanks

2nd May 2009, 23:34	#11
nvldvr BHPian Join Date: Apr 2009 Location: New Delhi Posts: 599 Thanked: 767 Times	Whats hdfc bank's rate of interest after all the recent rate cuts? Has Bank of Baroda's rate gone down from 10.5? I think thats the best one available as on date, right?
	() Thanks

4th May 2009, 19:32	#12
hdi_pro BHPian Join Date: Jan 2009 Location: Noida Posts: 93 Thanked: 3 Times	My Loan details with Central bank is as follows Loan -10.5%(Floating rate Prepossing fees - 2000 No Advanced EMI Thanks hdi.
	() Thanks

4th May 2009, 19:53	#13
nvldvr BHPian Join Date: Apr 2009 Location: New Delhi Posts: 599 Thanked: 767 Times	when did you take this loan? 10.5 % doesnt seem to be the current rate of interest.
	() Thanks

5th May 2009, 09:59	#15
nvldvr BHPian Join Date: Apr 2009 Location: New Delhi Posts: 599 Thanked: 767 Times	Is this 3000 an annual premium? and how does this insurance on loan work?
	() Thanks