Which car loan company to go for?

manish_symc · 11th November 2017, 20:55

Hi Friends,
Please help me in deciding whether SBI car loan is good?

Today, I visited Ford Dealership and inquired there for car loan too. There was a person who told me about SBI car loan.

1. Applicable interest rate based on CRISIL rating
For 7 Years
>750 => 8.7%
700 to 749 => 8.9%
<700 => 9.2%

2. No processing fee

3. No pre closure fee

4. I am not sure if there will be any part payment fee. I will check this.

5. Stamp fee - Rs. 2400

6. I was told that I can get 85% of the OTR. Can someone please share your experience on this?

7. Benefit of Max Gain (Similar scheme as Home loan by SBI).

I am looking for your experience with SBI car loan. Should I go for this?

avingodb · 12th November 2017, 09:32

The stamp fee can be waived off with a bit of discussion. Rest all looks standard. SBI any day!

manish_symc · 12th November 2017, 10:40

Quote:

Originally Posted by avingodb

The stamp fee can be waived off with a bit of discussion. Rest all looks standard. SBI any day!

Thanks avingodb. I will try if stamp fee also can be waived off.
Is there anything else to keep in mind when i go for carloan to any loan provider?
Thanks in advance.

satan's_valet · 12th November 2017, 11:14

The stamp duty will depend on the loan amount you wish to take. I was told by HDFC representative that the stamp duty is fixed at 1200 for a loan amount of less than 10 lakhs post which it increases to 2000 Rs..

reihem · 22nd October 2018, 00:00

How do luxury car dealers offer interest rates much lower than SBIs rate ? I never understood how that works. Sundaram Honda financed a jazz for me via Kotak at 10% after my best efforts. Volvo got me 7% via HDFC without any bargaining. I just never understand this.

aadya · 6th November 2018, 13:30

I am in the market for a car loan to purchase Skoda Rapid. My CIBIL score is 812. My cousin working in SBI has told the best rate is 9.25% if CIBIL score above 750. Dealer quoted 9.75% and 10.25% with SBI and Skoda finance respectively.

I checked with my neighbourhood Bank of Baroda. BoB offered 90% of the On Road price @ 9.05% if CIBIL score is >800. I am opting for a 3 year loan and BOB offers free Foreclosure after One year.

Should I shop/check more? Is this deal good enough ? I am ok with it as long the difference is not huge like the dealer quoted.

GrandTourer · 6th November 2018, 13:47

Quote:

Originally Posted by aadya

Should I shop/check more? Is this deal good enough ? I am ok with it as long the difference is not huge like the dealer quoted.

Why don't you enquire with HDFC? I had a CIBIL score in your vicinity as well. I got a 90% finance at 8.77% ROI. I am a long time customer, with a salary account with them as well, so not sure if that played a role.
Btw, VW was offering a similar rate IIRC.

aadya · 6th November 2018, 14:02

Quote:

Originally Posted by GrandTourer

Why don't you enquire with HDFC? I had a CIBIL score in your vicinity as well. I got a 90% finance at 8.77% ROI. I am a long time customer, with a salary account with them as well, so not sure if that played a role.
Btw, VW was offering a similar rate IIRC.

HDFC quoted 9% as best rate after some negotiation. I think there has been a slight increase in interest rates in the past few months. When was your loan processed?

GrandTourer · 6th November 2018, 14:06

Quote:

Originally Posted by aadya

HDFC quoted 9% as best rate after some negotiation. I think there has been a slight increase in interest rates in the past few months.

Could be the reason.

Quote:

When was your loan processed?

I purchased the car in Feb this year in Bangalore.

roby_dk · 6th November 2018, 14:23

Quote:

Originally Posted by aadya

HDFC quoted 9% as best rate after some negotiation. I think there has been a slight increase in interest rates in the past few months. When was your loan processed?

My current Car loan with HDFC is at 8% interest rate. It is on my wife's name and they easily gave that without much efforts. In case you hold a salary account with them speak to your personal banker. You can even check the offers page in Net-banking site it will show the pre-approved new car loan amount with EMI.

On_the_drive · 6th December 2018, 00:35

I am sharing my perils of SBI car loan. After this ordeal, I am pretty surely never opting for SBI again, though all my accounts are with them.

I had purchased a Celerio ZXI in Jun-Jul 2017. OTR Price Kolkata 5.23 lacs
Car Loan availed from SBI 1.5 lacs (dated 12th June, 2017) @9.25% * 5 yrs

For the first couple of months, no amount was being transferred from my SB Ac to Loan Ac. Sensing something fishy, I approached the Relationship Manager at the Bank who very casually remarked that ECS option was not yet activated. On completion of all formalities and instant online payment of the 2 months emi amount, I set to leave the SBI branch. Going through the SBI Anywhere app, I was shocked to see that the RoI against my loan read 14.5%.

I instantly brought this new information to the Relationship Manager's notice to which she replied that they are aware of the error and are looking into it. She checked into her system and made some changes so that the monthly ecs amount transferred from my SB account to Loan account was @ the stipulated 9.25%

However, this dawned in a new crisis. Month after month, the interest on the loan amount was being calculated @ 14.5% and ecs done @9.25%. Hence, my loan account was becoming irregular every month.
Repeated Whatsapp messages and texts to the Relationship Manager were futile. I mailed them thrice, couriered them the issue twice to no use.

This irregularity continued for about 15-16 months (till Oct 2018)

All of a sudden, one fine morning, a lady from the recovery deptt I guess called up mentioning the unpaid amount and the possibility of legal steps. I couldn't keep my calm any more and shouted on her. Shockingly, the irregular amount of ~7500₹ was deducted within an hour. Visited the branch, the Branch Manager was a gentleman. He apologized for the entire incident and was of the opinion that the irregular account be closed and a fresh one started. I agreed to his proposal. The irregularities be taken care of by the bank employees (to which I denied).

A couple of days later ( in Nov 18), I noticed that my loan account rate of interest in the online app is being shown as 9.25% (instead of the erstwhile 14.5%).

In synopsis, It was a loss-loss situation for me.

SBI erroneously charged me more for an entire year and half, made me a defaulter, destroyed my CIBIL score, then collected the entire default amount of 7500₹ from me and normalised the account.

I am yet to visit the branch after this normalisation of the account.

HappyWheels · 6th December 2018, 08:55

Quote:

Originally Posted by On_the_drive

I am sharing my perils of SBI car loan. After this ordeal, I am pretty surely never opting for SBI again, though all my accounts are with them.
...
I am yet to visit the branch after this normalisation of the account.

As always, it is the people at the branch who make or break a brand.

I had my Safari loan with SBI. 2 months after the last EMI was paid, went to my loan branch to pay off some residual amount and get the letter for removing hypothecation (I was not staying at my old address anymore).

Met the lady in charge and when she checked their system, my loan was in some "locked" state, which needed to be "released" by the HO people, before she can process anything. Told her that I have come to Bangalore just to get this done and I am based out of the country. This got her into calling her chain of colleagues to get the person in charge at HO, get the "release" done in their system and issue my letter within the hour. She really went the extra mile to get this done for me.

While this specifically interaction is indeed a great experience, one just cannot rely on having to meet the "right" person at an institute to get their work done. There should be a standard for all procedures and customer experience.

aadya · 6th December 2018, 10:54

Recently purchased SKODA RAPID from Tafe Access(HSR) with Bank loan from Bank of Baroda, Marathahalli. Entire process of application, approval and disbursement was hasslefree.

Once decided on the model and variant I gave a call to the branch manager. He collected the Pan number and obtained the CIBIL score immediately and based on that offered a loan upto 90% of OTR value @ 9.05 % with no preclosure charges after 6 months. Sent all the other requisite documents like ITR for past 3 years, address proof and Proforma invoice.

After PDI of the car, called him up and arranged a meeting on the same day. Visited the Bank and did physical verification of documents, signed the application form and signed agreement, ECS form etc. Obtained by mail the bank details of the dealership and disbursed the amount on the same day. This process took about 2 hours. Base rate for Bank of Baroda was increased the day before but the branch staff agreed to predate the application to the same date of Phone call and cibil verification and thereby avoiding a hike of 0.1 % of interest rate.

Had to visit the branch once again to get the Form 20(hypothecation form) signed by the manager which took about 10 minutes. Overall experience was pleasant and surprising. This branch has got some awards for good achievements in car loan category.

Disclaimer: I have a non-functional savings account in this branch for past 4 years and have my workplace situated in the same premises, and once I have met the manager socially before this transaction. No other association with this bank.

SJM1214 · 6th December 2018, 11:42

I bought MZ Brezza with a Car loan from Cosmos bank at 8.30 %(Sept2017). I paid 60% of the car price as Down payment and wanted to go for finance for the rest 40%. My requirement for the car loan was clear. I wanted my car loan for a maximum period of three years with the lowest available interest rate in the market.

Cosmos Bank is a well known co-operative bank with its headquarter in Pune. Local branch manager asked me to purchase minimum shares in my name and waived off processing fee. He also waived of pre-closure charges after one year. I submitted all my documents and bank people cleared their verification formality within two days. After finishing all the formality, the bank manager gave me a DD of requested amount in the name of MS dealer. Yes, it was strange but it gave me leverage on the dealer and I did all kind of pre-delivery inspection before handing over that DD to MS dealer.

Overall, my experience with Cosmos bank was amazing. We bought Honda WRV by obtaining a 40% loan from Cosmos bank at 8.60%(April 2018)interest rate.

Mission_PGPX · 25th February 2019, 14:08

loan experts,
I am finalizing a bmw 530d and need to take used car loan of about 35 lacs. Checked out the nationalized banks for finance and below is scenario:
SBI : only 10 lacs with interest rate of 10.8%
Bank of India : Tenure is the only problem they offer only 3 years at rate of 9.4%
PNB:5 years tenure at 9.4% but have to have a savings account
Bank of baroda : no response yet

Private banks:
ICICI : 11% upto 7 years
Axisbank : 12.25 %

Any idea whats the best to pick?

11th November 2017, 20:55	#376
manish_symc BHPian Join Date: Dec 2007 Location: Pune Posts: 155 Thanked: 100 Times	Re: Which car loan company to go for? Hi Friends, Please help me in deciding whether SBI car loan is good? Today, I visited Ford Dealership and inquired there for car loan too. There was a person who told me about SBI car loan. 1. Applicable interest rate based on CRISIL rating For 7 Years >750 => 8.7% 700 to 749 => 8.9% <700 => 9.2% 2. No processing fee 3. No pre closure fee 4. I am not sure if there will be any part payment fee. I will check this. 5. Stamp fee - Rs. 2400 6. I was told that I can get 85% of the OTR. Can someone please share your experience on this? 7. Benefit of Max Gain (Similar scheme as Home loan by SBI). I am looking for your experience with SBI car loan. Should I go for this?
	() Thanks

12th November 2017, 09:32	#377
avingodb BHPian Join Date: Sep 2011 Location: Delhi/Mumbai Posts: 683 Thanked: 696 Times	Re: Which car loan company to go for? The stamp fee can be waived off with a bit of discussion. Rest all looks standard. SBI any day!
	(1) Thanks

12th November 2017, 11:14	#379
satan's_valet BHPian Join Date: Oct 2013 Location: TN09/KA04 Posts: 320 Thanked: 190 Times	The stamp duty will depend on the loan amount you wish to take. I was told by HDFC representative that the stamp duty is fixed at 1200 for a loan amount of less than 10 lakhs post which it increases to 2000 Rs..
	() Thanks

22nd October 2018, 00:00	#380
reihem BHPian Join Date: Dec 2014 Location: Chennai Posts: 299 Thanked: 928 Times	Re: Which car loan company to go for? How do luxury car dealers offer interest rates much lower than SBIs rate ? I never understood how that works. Sundaram Honda financed a jazz for me via Kotak at 10% after my best efforts. Volvo got me 7% via HDFC without any bargaining. I just never understand this.
	() Thanks

6th November 2018, 13:30	#381
aadya BHPian Join Date: Dec 2016 Location: BANGALORE Posts: 297 Thanked: 1,270 Times	Re: Which car loan company to go for? I am in the market for a car loan to purchase Skoda Rapid. My CIBIL score is 812. My cousin working in SBI has told the best rate is 9.25% if CIBIL score above 750. Dealer quoted 9.75% and 10.25% with SBI and Skoda finance respectively. I checked with my neighbourhood Bank of Baroda. BoB offered 90% of the On Road price @ 9.05% if CIBIL score is >800. I am opting for a 3 year loan and BOB offers free Foreclosure after One year. Should I shop/check more? Is this deal good enough ? I am ok with it as long the difference is not huge like the dealer quoted.
	() Thanks

6th December 2018, 00:35	#386
On_the_drive Newbie Join Date: Oct 2018 Location: Kolkata Posts: 13 Thanked: 50 Times	Re: Which car loan company to go for? I am sharing my perils of SBI car loan. After this ordeal, I am pretty surely never opting for SBI again, though all my accounts are with them. I had purchased a Celerio ZXI in Jun-Jul 2017. OTR Price Kolkata 5.23 lacs Car Loan availed from SBI 1.5 lacs (dated 12th June, 2017) @9.25% * 5 yrs For the first couple of months, no amount was being transferred from my SB Ac to Loan Ac. Sensing something fishy, I approached the Relationship Manager at the Bank who very casually remarked that ECS option was not yet activated. On completion of all formalities and instant online payment of the 2 months emi amount, I set to leave the SBI branch. Going through the SBI Anywhere app, I was shocked to see that the RoI against my loan read 14.5%. I instantly brought this new information to the Relationship Manager's notice to which she replied that they are aware of the error and are looking into it. She checked into her system and made some changes so that the monthly ecs amount transferred from my SB account to Loan account was @ the stipulated 9.25% However, this dawned in a new crisis. Month after month, the interest on the loan amount was being calculated @ 14.5% and ecs done @9.25%. Hence, my loan account was becoming irregular every month. Repeated Whatsapp messages and texts to the Relationship Manager were futile. I mailed them thrice, couriered them the issue twice to no use. This irregularity continued for about 15-16 months (till Oct 2018) All of a sudden, one fine morning, a lady from the recovery deptt I guess called up mentioning the unpaid amount and the possibility of legal steps. I couldn't keep my calm any more and shouted on her. Shockingly, the irregular amount of ~7500₹ was deducted within an hour. Visited the branch, the Branch Manager was a gentleman. He apologized for the entire incident and was of the opinion that the irregular account be closed and a fresh one started. I agreed to his proposal. The irregularities be taken care of by the bank employees (to which I denied). A couple of days later ( in Nov 18), I noticed that my loan account rate of interest in the online app is being shown as 9.25% (instead of the erstwhile 14.5%). In synopsis, It was a loss-loss situation for me. SBI erroneously charged me more for an entire year and half, made me a defaulter, destroyed my CIBIL score, then collected the entire default amount of 7500₹ from me and normalised the account. I am yet to visit the branch after this normalisation of the account.
	(3) Thanks

6th December 2018, 10:54	#388
aadya BHPian Join Date: Dec 2016 Location: BANGALORE Posts: 297 Thanked: 1,270 Times	Re: Which car loan company to go for? Recently purchased SKODA RAPID from Tafe Access(HSR) with Bank loan from Bank of Baroda, Marathahalli. Entire process of application, approval and disbursement was hasslefree. Once decided on the model and variant I gave a call to the branch manager. He collected the Pan number and obtained the CIBIL score immediately and based on that offered a loan upto 90% of OTR value @ 9.05 % with no preclosure charges after 6 months. Sent all the other requisite documents like ITR for past 3 years, address proof and Proforma invoice. After PDI of the car, called him up and arranged a meeting on the same day. Visited the Bank and did physical verification of documents, signed the application form and signed agreement, ECS form etc. Obtained by mail the bank details of the dealership and disbursed the amount on the same day. This process took about 2 hours. Base rate for Bank of Baroda was increased the day before but the branch staff agreed to predate the application to the same date of Phone call and cibil verification and thereby avoiding a hike of 0.1 % of interest rate. Had to visit the branch once again to get the Form 20(hypothecation form) signed by the manager which took about 10 minutes. Overall experience was pleasant and surprising. This branch has got some awards for good achievements in car loan category. Disclaimer: I have a non-functional savings account in this branch for past 4 years and have my workplace situated in the same premises, and once I have met the manager socially before this transaction. No other association with this bank. Last edited by aadya : 6th December 2018 at 11:06. Reason: additional info.
	() Thanks

6th December 2018, 11:42	#389
SJM1214 Senior - BHPian Join Date: Sep 2017 Location: Anand(GJ23) Posts: 1,572 Thanked: 5,951 Times	Re: Which car loan company to go for? I bought MZ Brezza with a Car loan from Cosmos bank at 8.30 %(Sept2017). I paid 60% of the car price as Down payment and wanted to go for finance for the rest 40%. My requirement for the car loan was clear. I wanted my car loan for a maximum period of three years with the lowest available interest rate in the market. Cosmos Bank is a well known co-operative bank with its headquarter in Pune. Local branch manager asked me to purchase minimum shares in my name and waived off processing fee. He also waived of pre-closure charges after one year. I submitted all my documents and bank people cleared their verification formality within two days. After finishing all the formality, the bank manager gave me a DD of requested amount in the name of MS dealer. Yes, it was strange but it gave me leverage on the dealer and I did all kind of pre-delivery inspection before handing over that DD to MS dealer. Overall, my experience with Cosmos bank was amazing. We bought Honda WRV by obtaining a 40% loan from Cosmos bank at 8.60%(April 2018)interest rate. Last edited by SJM1214 : 6th December 2018 at 11:45.
	(3) Thanks

25th February 2019, 14:08	#390
Mission_PGPX BHPian Join Date: Mar 2015 Location: Ahmedabad Posts: 333 Thanked: 662 Times	Re: Which car loan company to go for? loan experts, I am finalizing a bmw 530d and need to take used car loan of about 35 lacs. Checked out the nationalized banks for finance and below is scenario: SBI : only 10 lacs with interest rate of 10.8% Bank of India : Tenure is the only problem they offer only 3 years at rate of 9.4% PNB:5 years tenure at 9.4% but have to have a savings account Bank of baroda : no response yet Private banks: ICICI : 11% upto 7 years Axisbank : 12.25 % Any idea whats the best to pick?
	() Thanks