[souravc]

Originally Posted by nileshch

Wonder why such high interest rates are being quoted. I got 2 quotes from 2 banks - Axis bank 10.59% and Bharat cooperative 10.5%. Last I checked with SBI, 2 months ago, it was 9.25% for the first year. I'd never go with any of the private banks with 11 and 12%!

Suggest that you check with Tata Capital , they have a certain tie-up with VW for Ventos and offer supposedly better rates . I took mine from them in March and got it at 9.75% and they were a good percentage point better than the rest like ( HDFC / Kotak / SBI) I would suggest that you try to minimise the loan amount as much as possible and do not fall into the trap of fixed for 1 year and floating after that . I do not think that we have seen the last of the interest rate rise and you would be left quite exposed to the mercy of the banks if you opt for such a scheme .
SBI has increased their base rate by a whopping 0.75% since you last got your quote and given their last quarter dismal results would most likely be more aggressive in hiking rates .. thats IMO

[MileCruncher]

Originally Posted by nileshch

Wonder why such high interest rates are being quoted. I got 2 quotes from 2 banks - Axis bank 10.59% and Bharat cooperative 10.5%. Last I checked with SBI, 2 months ago, it was 9.25% for the first year. I'd never go with any of the private banks with 11 and 12%!

No offences but I guess you haven't been reading the news. Much water has flown through the Ganges and interest rates have continuously been hiked by RBI in the last 2 months to curb inflation (monetary policy). The present SBAR is around 14%. And that has made SBI loans quite expensive at around 11.50% :: STATE BANK OF INDIA :: Safe Banking With SBI :: So if you are getting 10.5% grab it without delay as interest rates are supposed to increase again.

[nileshch]

Originally Posted by souravc

Suggest that you check with Tata Capital , they have a certain tie-up with VW for Ventos and offer supposedly better rates . I took mine from them in March and got it at 9.75% and they were a good percentage point better than the rest like ( HDFC / Kotak / SBI) I would suggest that you try to minimise the loan amount as much as possible and do not fall into the trap of fixed for 1 year and floating after that . I do not think that we have seen the last of the interest rate rise and you would be left quite exposed to the mercy of the banks if you opt for such a scheme .
SBI has increased their base rate by a whopping 0.75% since you last got your quote and given their last quarter dismal results would most likely be more aggressive in hiking rates .. thats IMO

Yes, I too have ruled out SBI because of the hidden terms. Would like a simpler set of terms from a loan I take. Will surely check out Tata Capital. Thanks!

Originally Posted by MileCruncher

No offences but I guess you haven't been reading the news. Much water has flown through the Ganges and interest rates have continuously been hiked by RBI in the last 2 months to curb inflation (monetary policy). The present SBAR is around 14%. And that has made SBI loans quite expensive at around 11.50% :: STATE BANK OF INDIA :: Safe Banking With SBI :: So if you are getting 10.5% grab it without delay as interest rates are supposed to increase again.

Yes, been reading the news. That's why I mentioned the time for SBI. But the other 2 are latest and I still don't get why private bank rates are so high. These banks also give me quick service and are already processing the approval as quickly as they can. Bharat told me 3 days from approval to cheque disbursement.

All I wanted to say - look around and don't forget the lesser banks they are equally good.

[MileCruncher]

Originally Posted by nileshch

Yes, I too have ruled out SBI because of the hidden terms.

Could you please elaborate on this a bit more please.

Would love to hear your P.O.V.

Cheers

[nileshch]

Originally Posted by MileCruncher

Could you please elaborate on this a bit more please.

Would love to hear your P.O.V.

Cheers

Arrgh. Should be careful when typing from my mobile phone, especially when taking a night walk!

I didn't exactly mean 'hidden terms' but rather, 'complicated calculations'. Nothing exceptional to say, @Milecruncher.

[MileCruncher]

Originally Posted by nileshch

Arrgh. Should be careful when typing from my mobile phone, especially when taking a night walk!

Never mind

Originally Posted by nileshch

I didn't exactly mean 'hidden terms' but rather, 'complicated calculations'. Nothing exceptional to say, @Milecruncher.

As a matter offact, SBI and most other PSU have the easiest and the simplest of the terms. They are the only ones who follow daily reducing balance and allow extra payment in the middle of the term. I have just taken my 2nd and 3rd loan from them after being a happy customer for the last 2 years.

[e-katz]

Originally Posted by MileCruncher

As a matter offact, SBI and most other PSU have the easiest and the simplest of the terms. They are the only ones who follow daily reducing balance and allow extra payment in the middle of the term. I have just taken my 2nd and 3rd loan from them after being a happy customer for the last 2 years.

+1 to that. Even though they are tedious with the loan processing and approval process, the terms offered by them are most customer-friendly. It will be a long while before interest rates drop below sub-10% level. So if there are any banks around offering sub-11%, I guess one should just grab it with both hands!!

[e-katz]

Originally Posted by nileshch

Wonder why such high interest rates are being quoted. I got 2 quotes from 2 banks - Axis bank 10.59% and Bharat cooperative 10.5%. Last I checked with SBI, 2 months ago, it was 9.25% for the first year. I'd never go with any of the private banks with 11 and 12%!

Can you share the details for the above interest rate offered by axis i.e loan amount, tenure, car etc?

[nileshch]

Originally Posted by e-katz

Can you share the details for the above interest rate offered by axis i.e loan amount, tenure, car etc?

This is almost 15 days old now. I have not taken a fresh quote yet. 10.59% for 5.5l for 5 years.

[nileshch]

My bank is insisting on issuing the DD for the car insurance along with the DD for the car purchase. Is this normal? Do all banks insist on paying for the insurance as well?

Note that I would still have the freedom to select the insurance company and decide on the premium for which the bank will issue the DD. This money will come directly from my account and not be a part of the loan amount. Also, this is just for the first year. Next year onwards I am free to pay to the insurer directly.

Seems harmless, but still thought this was a little weird. Because, the car dealer will anyway not give me possession of the car without the insurance. Why should the bank insist on paying for the insurance rather than letting me do?

[nirav]

KOTAK- NONO!

Went in for a second-hand car loan from Kotak as my dealer was tied up with them and i assumed this would streamline the process. Moreover, my previous car (NHC) was also financed by them. Little did i know, my nightmare was just beginning! As i have been living outside the country, the NHC loan was taken using company cheques as a payment. Halfway through the loan, the company changed bank accounts and Kotak was duly informed of this. The verbally assured us that the cheques would not be deposited and they would come every month to pick up new cheques- however they could not return the old ones as "they are with the head office". Sure enough, the geniuses allowed 12 cheques to bounce before destroying the remaining ones, while at the same time coming to the office to collect the new cheques from the new account.

This created a credit issue when processing my new loan, as the Kotak people had not updated their records with this case. As a result, i was put through all sorts of pain with document demands etc. Finally, the Kotak guy said all was ok and that i could take delivery of the car- he communicated the same to the dealer and i subsequently paid the cash balance off and took delivery that same day. The next day, i get a call from the dealer saying that Kotak has not released payment to him, and that he will have to take the car back! Kotak had not bothered to communicate this to me at all, and after i called them they responded in the positive: "oh ya, we need another doc to be signed by ALL partners of your firm, even though the loan is in your personal name. We will not release the DD to the dealer without this doc." I was forced to return the car.

Finally 5 days later the doc in question was completed, at which time upon double checking with Kotak that no more docs are due, they come back saying "oh ya, we need another doc from your bank to verify signature. We will not release the DD to the dealer without this doc." Fortunately we share a good relationship with the bank, and this letter was produced immediately. Finally, upon submitting both docs to the Kotak guy, he gets a call saying "signatures are irregular in some places, all forms will have to be re-signed before DD can be released." This came to me a good 10 days after the initial forms were signed!

With much hesitation, I escalated the matter to a far higher level using a contact (I dont like to do things this way, but i feel they left me no choice) following which the DD was released within one day. I deeply regret doing any business with them, and doubt i ever will again. There were times where i felt that they didnt want (or care for) my business!

Bear my experience in mind before you even consider Kotak Mahindra Finance in the future!

[ninjatalli]

Searched the forum, couldn't find any proper thread, and hence posting here.

A little background - I have a CIBIL score of 650 odd. Thanks to an overdue payment of 25Rs to HSBC in 2004 that increased thousandfold and was finally settled a few months back. Now I'm aware that most banks look at 700 & above scores for issuing loans/credit cards, etc.

I have booked a Vento, and would require a loan soon. As a backup, I plan to take up only 70% of the loan (as per a suggestion from a friend in the financial industry) in lieu of the lower score.

Does anybody have any idea which of the financial institutions are linient on this CIBIL rating? (Heard from a source that SBI is stringent on the CIBIL score, dunno about the rest). Asking as loan rejections also impact the CIBIL score - most sales division of loans openly state that they are quiet linient, and one finds out later only after the credit division of the bank provides a final decision on the loan request.

Inputs/suggestions are welcome.

[Rotorhead]

Is there a website where we can get the interest rates provided by all the banks currently ?

[windsurfer]

Check this Car Loan Interest Rates | Car Loan Rates | Car Loan Comparison

[JD1]

Per an article on NDTV.com, SBI is launching a special car loan scheme for an EMI of Rs 1700/- per lakh. Article like => SBI to launch special car loan scheme - NDTV Profit

Not many details in the article or SBI website though. Also, the report mentions 11.5 % interest whereas SBI site mentiones current interest as 11.25 %. See here => STATE BANK OF INDIA :: INDIA's LARGEST BANK