[avingodb]

I received a message from SBI that loan rate has been revised from 8.9 to 9.3 percent. This also reflects in the account now. This is extremely strange and surprising to me.
Is there a way to fight this?

[Pancham]

Originally Posted by avingodb

I received a message from SBI that loan rate has been revised from 8.9 to 9.3 percent. This also reflects in the account now. This is extremely strange and surprising to me.
Is there a way to fight this?

We had a floating rate of interest with SBI. At the end of 5 years we were asked to pay around 20-30k extra in interest which acrrued due to rate fluctuation over the period of 5 years. So beware.

[varkey]

I recently took an SBI car loan to purchase a Santro Sportz AMT, and overall it was a great experience with SBI. The entire loan approval and disbursement process was done in a matter of 30-40 min right in front of me. The dealer had some sort of tie up with the SBI branch as they seem to be recommending everyone for SBI car loan, plus I always preferred SBI due to interest calculation on daily reducing balance and zero pre-payment or pre-closure charges.

So I visited the branch and met with the SBI offer who seem to be dealing with similar loans with the sales advisor, submitted my documents. The SBI officer pulled the credit report from CRIF first and said that the report from Cibil is pulled by the system automatically once the application is logged.

The application was logged while I was at the branch, and he required few additional documents like bank statements which wasn't mentioned earlier. I emailed it to the official email address of the branch.

The interest rate is based on your credit score, and the lowest rate is given to those with score above 750+. Although my Cibil score is 800+, for some reason the CRIF score is messed up and was less than 700. SBI takes the average of both CRIF and Cibil to determine the rate of interest. I was offered the next interest slab of 9.45% (9.25% was the lowest). The rate of interest was determined automatically by the system and in no time the sanction letter was generated and I was given a copy.

The OTR price of the vehicle was 6.22 L and loan amount came to 5.29 L (~ 85%). No processing fee, stamp fee, hypothecation fee etc. I had an existing SBI account so it made things a bit quicker. The loan amount was directly transferred to the dealer's account in their records and I transferred the difference amount separately.

The overall process took less than 45 min, and I was able to see the loan account details in net banking the same evening. One discrepancy was that the interest rate was shown as 9.75% (the highest slab), so I sent an email to the branch with a screenshot and was fixed promptly by the next working day.

So far no issues, however I noticed that the auto debit is not setup, but I transferred the amount from my linked SBI account without any issues. I also setup a scheduled transfer from my bank account in another bank by NEFT for the upcoming EMIs.

I also just tested NEFT and IMPS transfers for small amounts just to see whether it works. IMPS transfer was credited immediately and NEFT took an hour or two just like a bank account.

There is no restriction on partial pre-payments or pre-closure. I was even able to transfer Rs 50. Although the loan was sanctioned for 7 years, I would be paying extra than the EMI amount to close the loan early say in 3 years or so.

Overall, I found the experience really good, and would whole heartedly recommend SBI for car loans. But yeah as others have posted above, it depends on the branch as well.

[rovingeye]

Originally Posted by varkey

I recently took an SBI car loan to purchase a Santro Sportz AMT, and overall it was a great experience with SBI. The entire loan approval and disbursement process was done in a matter of 30-40 min right in front of me.

Overall, I found the experience really good, and would whole heartedly recommend SBI for car loans. But yeah as others have posted above, it depends on the branch as well.

What date approximately did you get this loan Varkey? I'm in the process now and am being told that I will have to pay both prepayment and foreclosure penalties in case I pay early.

[Ramon]

Originally Posted by rovingeye

What date approximately did you get this loan Varkey? I'm in the process now and am being told that I will have to pay both prepayment and foreclosure penalties in case I pay early.

Yes. SBI has introduced Pre Payment (1% plus GST per quarter on part payment over and above EMI if prepaid within 36months from the date of disbursement of loan and

Foreclosure charges (@ 3% plus GST to be recovered on balance at the time of closure of account if the loan account is closed prior to sanctioned tenure) wef 01/05/2019

[varkey]

Originally Posted by rovingeye

What date approximately did you get this loan Varkey? I'm in the process now and am being told that I will have to pay both prepayment and foreclosure penalties in case I pay early.

I got it on April 29, 2019. It's also a fixed interest rate loan. Also, the auto generated sanction letter had a clause saying that there would be pre-closure and pre-payment charges, but this was waived off for me.

[SoumenD]

Originally Posted by varkey

I got it on April 29, 2019. It's also a fixed interest rate loan. Also, the auto generated sanction letter had a clause saying that there would be pre-closure and pre-payment charges, but this was waived off for me.

Same here. I got it on April 24th,2019 and hence fixed rate & prepayment charges waived off. ROI was 9.25%. Did anyone manage any lesser? They said if CIBIL score is 750+ that's the best rate of interest. Mine was 840+

Originally Posted by Ramon

Yes. SBI has introduced Pre Payment (1% plus GST per quarter on part payment over and above EMI if prepaid within 36months from the date of disbursement of loan and

Foreclosure charges (@ 3% plus GST to be recovered on balance at the time of closure of account if the loan account is closed prior to sanctioned tenure) wef 01/05/2019

They told me about this coming up from May onwards but I didn't buy it thinking it's one of those sales executive gimmicks Close shave I must say.

Loan processing was quick. Barely 40-45 mins visit was enough. But I struggled enabling online banking. The OTPs and other messages came to my mobile number but while registering online the system said mobile number was not linked. Weird. Had to visit the branch again and they gave me the online banking kit which got activated after some 4 hours post which registration went through fine.

[rovingeye]

Originally Posted by SoumenD

Same here. I got it on April 24th,2019 and hence fixed rate & prepayment charges waived off.

Originally Posted by varkey

I got it on April 29, 2019. It's also a fixed interest rate loan. Also, the auto generated sanction letter had a clause saying that there would be pre-closure and pre-payment charges, but this was waived off for me.

Both of you got lucky.

This whole business of prepayment penalty stinks. Here honest tax paying citizens are clamoring to pay off loans and the government (SBI is government owned) is again squeezing them by charging penalties. Whereas larger defaulters roam about scot free.

[arindambasu13]

Took mine from Canara Bank Digital Banking Branch. My CIBIL score was very good, and hence rate of interest was 9%. No processing charges, no prepayment charges, and the process was smooth as a hot knife through butter. Everything was done through whatsapp and email, and had to visit the branch only once for 15 mins to sign the loan agreement. Highly recommended, since their Digital Banking branch is relatively new and looking to increase business. The team there is also very responsive and good to deal with. All the benefits of a nationalised bank with none of the red tapeism prevalent there.

Happy to share contact details if anyone in Bangalore is interested.

[princex]

Originally Posted by arindambasu13

Happy to share contact details if anyone in Bangalore is interested.

Can you please share the contact number and details.

[arindambasu13]

Originally Posted by princex

Can you please share the contact number and details.

Couldn't PM you and hence sharing the details here:

Bank Manager (Canara Bank Digital Banking Branch, MG Road ): Mr. Justine Mathew
Number: 99005 99750

[haisaikat]

I am evaluating car loan options from various banks at present. Since the last time I took a car loan several years back I see few major changes
1. Private players offering part payment but in many cases it's very conservative and the scheme will speak for itself that bank does not want you to pay in parts. HDFC is allowing only 2 part payments upto 25% of outstanding in entire loan tenure with applicable penalty but Yes bank surprisingly has upto 6 part payment option penalty free per year. If you have a account with Yes bank then foreclosure charges are also waived off. While Yes bank is offering 9.4% but HDFC seems to be offering at 9.6 % even to existing customers.

2. Bullet and Balloon schemes being offered by several private players. In bullet scheme the EMI is less but they expect one high value EMI per year to balance the lower monthly EMI. Balloon scheme on the other hand will assume that 25% of the sanctioned amount will be paid in the last EMI of the entire loan tenure and rest paid monthly. All these to attract people who wants to keep initial EMI low.

3. HDFC offering custom fit car loan where EMI will increase every year by 10-11% over previous years thereby offering lesser burden on first 2-3 years

4. Oriental bank offering 10 years tenure on car loan and unlike SBI not introducing any part or preclosure charges. Rate being same as 9.25 %

Amidst all the above SBI is offering 85% margin on the OTR similar to other PSU banks but they assume 5% additional OTR in accesories which other banks are not accounting. This makes effectively 95% of normal OTR coverage same as private sector banks and add the pre and part closure flexibility even with the penalties considered. So SBi is not our of the race and except the flexibility of bullet, ballon or increasing EMI schemes of some private banks they are still not able to match SBI.

I am contemplating between SBI, Oriental, HDFC and Yes Banks for now and evaluating if other banks can offer anything better.

[advvenkat]

Hello,

I recently booked an EcoSport Titanium 1.5L Petrol. I have been advised by my dealer to go with SBI or HDFC, but I insisted and ended up taking loan from my favorite banker UBI. The loan was sanctioned on the same day with the rate of % at 9.1%, lowest in the market, with processing fee of Rs. 1024 and no pre-closure penalty. The rate of interest and processing time is based on your CIBIL score.

I would be happy to share with the contacts if anyone is looking for a car loan in Chennai!

[knightrider_7]

I am 8 months into my first job and before that my income was in the form of stipend. Since I have 4 more months to confirm probation, can I get a car loan at this time?

Thanks in advance.

[advvenkat]

Originally Posted by knightrider_7

I am 8 months into my first job and before that my income was in the form of stipend. Since I have 4 more months to confirm probation, can I get a car loan at this time?

Thanks in advance.

It depends on the reputation of your employer. Public enterprises and large MNCs will have some advantages over others. In general, banks lend loans based on your IT returns over the past 3 years, and in case of car loans, it will be the present year ITR or salary slip or in some cases, 2 years ITR and salary. Therefore, although it is difficult in public sector banks, you may have a chance depending on your CTC and employer.