[SoumenD]

Originally Posted by Pancham

The only issue is the Bank - it is State Bank of India. I have had pretty terrible experiences with the Bank. I wanted to seek some suggestions on people's recent experiences.

1. How easy is it to pre-close SBI car loans? Is there anything I need to be mindful of?

2. How easy is part payment?

I went with a 5 year SBI car loan in 2019 April and closed it in 1.5 years (by Nov,2020). Only point where I had to struggle a bit was enabling the yono app online login. Other than that I have done prepayment every quarter and preclosed the pending amount with a nominal fee of 600INR. It was a pretty smooth experience.

[Pancham]

Originally Posted by SoumenD

I went with a 5 year SBI car loan in 2019 April and closed it in 1.5 years (by Nov,2020). Only point where I had to struggle a bit was enabling the yono app online login. Other than that I have done prepayment every quarter and preclosed the pending amount with a nominal fee of 600INR. It was a pretty smooth experience.

Great sounds good.

By the way, I also checked the YONO app but it doesnt seem to have any special offers.

[padmrajravi]

Originally Posted by Pancham

So just to confirm, in addition to the monthly EMIs (through ECS), I can keep depositing whatever amount I like every month (even before the month no. 12) and that way the loan period will also come down. Correct?

For loans taken before 2020, this was the case. Starting 2020 , they started penalizing for part payment and foreclosure. For the next three months they have brought an offer saying no partpayment charges. But there will be penalty if you foreclose it completely with in one year. The website still says there are penal charges, but the sales person maintains that there is an offer for next three months. I can not find about this offer anywhere in the website. So I am skeptical about this.

BOB specifically mentions zero part payment and zero foreclosure charges in their website.

[condor]

Friends,

what is the typical interest rate that a person in the 30-35 age bracket, expect ?

He is having an issue with one of the dealerships, who had offered him 10% rate. If I look at the rate given, it looks like his credit score is not very high.

I'm trying to help him out in this.

[sam264_2000]

Originally Posted by condor

Friends,

what is the typical interest rate that a person in the 30-35 age bracket, expect ?

He is having an issue with one of the dealerships, who had offered him 10% rate. If I look at the rate given, it looks like his credit score is not very high.

I'm trying to help him out in this.

10% is very high, even for a person with a not so good CIBIL score. Is he open to NBFC? Ask him to check out IndusInd Bank. I heard they do want to expand themselves in Loan business but since they aren't as big as other private banks, many don't consider them. Other option is to go with any popular co-operative bank.

[Pancham]

I am stuck in a weird situation. My car loan with Kotak has been approved. We verbally agreed that I will get the following benefits:

1. Rate of interest: 7.1%
2. Advance EMI: No
3. Pre - payment penalty or charges: No / NIL / Zero charges
4. Part - payment penalty or charges: No / NIL / Zero charges
5. EMI = 1985 per 1 Lac
6. No. of Part-payments: Unlimited

However, they are not willing to share this in writing especially the part payment and pre-payment benefits. I have faced issues in the past where I tried to pre-pay but the Kotak customer care did not recognize my earlier confirmation from the loan agent. They have a default setting where they deduct a charge (which is huge) if you want to pre-pay. I had to go to great lengths to get the charges waived. So for this loan I am adamant about having all these conditions in writing.

Has anyone faced any similar issues? Did they give you guys a written confirmation?

P.S: All my accounts are with Kotak and I am their so called Privy League customer but there seems to be disconnect between savings account and car loan records since both are different Kotak companies.

[Everlearner]

Originally Posted by Pancham

1. Rate of interest: 7.1%
2. Advance EMI: No
3. Pre - payment penalty or charges: No / NIL / Zero charges
4. Part - payment penalty or charges: No / NIL / Zero charges
5. EMI = 1985 per 1 Lac
6. No. of Part-payments: Unlimited

However, they are not willing to share this in writing especially the part payment and pre-payment benefits. I have faced issues in the past where I tried to pre-pay but the Kotak customer care did not recognize my earlier confirmation from the loan agent. They have a default setting where they deduct a charge (which is huge) if you want to pre-pay. I had to go to great lengths to get the charges waived. So for this loan I am adamant about having all these conditions in writing.

Has anyone faced any similar issues? Did they give you guys a written confirmation?

Yes, be adamant about getting the loan conditions in writing. I have seen many people giving false promises to make the sale especially in the financial products.

[Pancham]

Originally Posted by Everlearner

Yes, be adamant about getting the loan conditions in writing. I have seen many people giving false promises to make the sale especially in the financial products.

The issue is that the loan agents are really lower level staff in the food chain. So I am not sure how much I can trust a letter send by him. When I showed him the letter I got last time he scoffed and agreed to send immediately. . Can I trust the letter sent by him if (1) it is sent from an official Kotak email id and (2) is written under Kotak letter head? There is no signature in the letter by the loan guy.

I asked him to mark his boss when sending the letter - he did not. Absurd how companies like Kotak are surviving like this.

[Everlearner]

Originally Posted by Pancham

The issue is that the loan agents are really lower level staff in the food chain. So I am not sure how much I can trust a letter send by him. When I showed him the letter I got last time he scoffed and agreed to send immediately. . Can I trust the letter sent by him if (1) it is sent from an official Kotak email id and (2) is written under Kotak letter head? There is no signature in the letter by the loan guy.

I asked him to mark his boss when sending the letter - he did not. Absurd how companies like Kotak are surviving like this.

Yes, it should be valid if sent from his official kotak email id.

[amey027]

I booked the Kushaq recently and was applying for a loan with HDFC, where I have my salaried account. As a result, the process is breezy and courtesy a good credit score, I am getting a 7.5% fixed interest rate as well. However, when I tried filing the application online, the list of dealers mentioned on the HDFC website didn't match the official Skoda list. The weird part is it mentioned Maruti and Mahindra dealers when I clearly selected Skoda. So now I am really confused whether I should risk applying online or just walk in to the bank. The last thing I want is HDFC creating issues because the dealer selected online doesn't match the one where I actually bought it from, even though it's a bug at their end.

[humyum]

Any update on the latest car loan rates anyone has got from personal experience. Looking for a loan for the Crysta we are going to purchase.

[drsingh]

IDFC first Bank if offering car loan tenure upto 10 years on Maruti, Hyundai, Toyota vehicles. @7.5%

[asitmonty]

Originally Posted by humyum

Any update on the latest car loan rates anyone has got from personal experience. Looking for a loan for the Crysta we are going to purchase.

Go for a private bank with a fixed loan. Both ICICI and HDFC offer about 7.6% as of May 28 2022. The interest rates are sort of at an all time low, and opting for reducing interest rates (which public banks charge) will mean your interest rates will go up.

the general rule of thumb is for every 10L, 0.1% incremental interest rate will cost you extra 3k for the duration (5 years).

I took a loan of 10L this May from ICICI at 7.6% fixed. CIBIL about 780. HDFC and Union Bank had similar interest rates, though I already have existing accounts with ICICI, so went with them.

[eminemence]

Got these two quotes from SBI & HDFC.

SBI : RoI % : 7.55(for the Cibil score > 750)
No prepayment charges
Processing fees : 5000 + GST
This rate is offered for disbursements initiated till June end 2022. Rates expected to increase in July 2022.

HDFC : RoI % : 7.35
Prepayment charges : Based on duration it ranges from 0% to 7% of outstanding balance.
Processing fees : 8000 + GSt
Offer : To give 30% discount on dealer quoted insurance rate.

[asitmonty]

Originally Posted by eminemence

SBI : RoI % : 7.55
HDFC : RoI % : 7.35

are both of these fixed rates? for a 10L loan, 0.1% diff in insurance adds upto approx 3000 in interest.

that right there is a 3000-6000 lower quote by HDFC.
As for their 30% off dealer quote, that could add another 7k (assuming 25k dealer final quote). Even though dealer quote starts at 40k, you can get online quotes and bargain it down.

so, on the face of it, HDFC looks about 7-10k cheaper