Which car loan company to go for?

NetfreakBombay · 1st September 2009, 23:16

Quote:

Originally Posted by MileCruncher

The SBI Life Policy is compulsory and will cost you depending upon your loan amount. Its actually a loan protection policy. I would rather pay a small amount and protect my next of kin if anything untoward happens to me.

That is completely illegal (Forced bundling of financial products).

I am sure SBI branch employees have cross selling targets and are making up this fact.

MileCruncher · 1st September 2009, 23:46

Quote:

Originally Posted by NetfreakBombay

That is completely illegal (Forced bundling of financial products).

I am sure SBI branch employees have cross selling targets and are making up this fact.

This is not illegal because of the simple fact that CREDIT is a privilege and not a right. A person providing credit has the right to secure the credit that they are giving to someone through Insurance, higher interest rates, guarantors et al. If one doesn't like one lender, they are free to go another one under the free market dynamics.

But certain bundling would be ilegal in MF/ Life Insurance and other financial products .

May be a finance guy can put this in a better manner.

kumar7 · 2nd September 2009, 01:29

Quote:

Originally Posted by NetfreakBombay

That is completely illegal (Forced bundling of financial products).

I am sure SBI branch employees have cross selling targets and are making up this fact.

Its not at all compulsory to buy and its upto your wish if you want to buy it or not.

When I visited RACPC at that time they asked me for term policy and they said its not compulsory & its your wish.

WanderNomad · 2nd September 2009, 01:43

Quote:

Originally Posted by MileCruncher

This is not illegal because of the simple fact that CREDIT is a privilege and not a right. A person providing credit has the right to secure the credit that they are giving to someone through Insurance, higher interest rates, guarantors et al. If one doesn't like one lender, they are free to go another one under the free market dynamics.

But certain bundling would be ilegal in MF/ Life Insurance and other financial products .

May be a finance guy can put this in a better manner.

I am a banker and its fully illegal. The credit is secured by way of Insurance of the car and not this way.

But this is how targets are met in the merciless world.

MileCruncher · 2nd September 2009, 07:25

Quote:

Originally Posted by WanderNomad

I am a banker and its fully illegal. The credit is secured by way of Insurance of the car and not this way.

But this is how targets are met in the merciless world.

If this is illegal, then how do we stop. Should approaching the Banking Ombudsman help?

amanmalhotra · 2nd September 2009, 09:11

Quote:

Originally Posted by MileCruncher

If this is illegal, then how do we stop. Should approaching the Banking Ombudsman help?

We can opt out of it, but the process for that is a little cumbersome, so it just puts off everyone.
The initial documentation is prepared which has the insurance premium builtin. In case you do not want it, then you need to approach the branch manager of the forwarding branch (the branch which sent your case to RACPC), and get an approval from him. The papers are then redone and money disbursed.
Secondly, the premium wasn't a whole lot and SBI wasn't charging me processing fee. So I consoled myself by telling that think of this as the processing charges for which I am getting something back.

MileCruncher · 2nd September 2009, 10:13

Quote:

Originally Posted by amanmalhotra

We can opt out of it, but the process for that is a little cumbersome, so it just puts off everyone.
The initial documentation is prepared which has the insurance premium builtin. In case you do not want it, then you need to approach the branch manager of the forwarding branch (the branch which sent your case to RACPC), and get an approval from him. The papers are then redone and money disbursed.
Secondly, the premium wasn't a whole lot and SBI wasn't charging me processing fee. So I consoled myself by telling that think of this as the processing charges for which I am getting something back.

As a matter of fact it was same in my case. I think I paid about 5k odd for the premium. My loan agreement document had this mentioned that approval subject to taking of the SBI Life insurance. As a matter of fact it was the case with every car loan application. But end of the day am happy as over all I'm paying lesser than what I would have paid with Pvt Bank Loan.

NetfreakBombay · 2nd September 2009, 22:05

Quote:

Originally Posted by MileCruncher

If this is illegal, then how do we stop. Should approaching the Banking Ombudsman help?

This is governed by IRDA. Forced bundling of Insurance is illegal with ANY other product.

Even after someone has availed loan, policy can be returned free of cost to SBI Life (Not SBI) free of cost. This has to be done within 15 days of receiving policy documents.

balajeshi · 3rd September 2009, 22:08

wohoooo .. my car loan from SBI got approved [got a SMS Message] will go to the RACPC either this week or next .Now i can dream about my Punto ;-) .

MileCruncher · 3rd September 2009, 23:23

Quote:

Originally Posted by balajeshi

wohoooo .. my car loan from SBI got approved [got a SMS Message] will go to the RACPC either this week or next .Now i can dream about my Punto ;-) .

Congrats man! But you'll need to give the bank your down payment receipts before getting the disbursement.

So which colour is it to paint the town red?

balajeshi · 4th September 2009, 10:14

Thanks a lot man ..

i am waiting for the call from RACPC today or start of next week .Will book a RED Punto[MJD Active] once i get the call as you said i need to produce the receipt for the downpayment .

And one more thing is i am going for my driving license sometimes next week so it'll be like Kaustav straight away getting into a new car after my 10 hour driving license .[Have to drive in early morning and late night to get used to the car before going onto the traffic .although i drive a 2 wheeler for the past 3 years here]

kumar7 · 4th September 2009, 23:10

Quote:

Originally Posted by balajeshi

Thanks a lot man ..

i am waiting for the call from RACPC today or start of next week .Will book a RED Punto[MJD Active] once i get the call as you said i need to produce the receipt for the downpayment .

And one more thing is i am going for my driving license sometimes next week so it'll be like Kaustav straight away getting into a new car after my 10 hour driving license .[Have to drive in early morning and late night to get used to the car before going onto the traffic .although i drive a 2 wheeler for the past 3 years here]

Amazing forecast planning

Before purchasing the car you applied for the loan!
Before getting the license you planned for car!
Before having hands on (You should not feel exceptional in this case as someone has to be learner) car purchase!

Defiantly one should learn from you about planning things before hand

IndrojitSircar · 5th September 2009, 01:33

Well sometimes its a big hassel to get loans from nationalised banks and for people who do not have colateral to show most times the national banks do not give them a loan.Where as their interest rates a much lower and it affects in the EMI and Down Payment.

MileCruncher · 5th September 2009, 06:11

Quote:

Originally Posted by IndrojitSircar

Well sometimes its a big hassel to get loans from nationalised banks and for people who do not have colateral to show most times the national banks do not give them a loan.Where as their interest rates a much lower and it affects in the EMI and Down Payment.

Don't agree to this one. Atleast for Car Loan SBI doesn't ask for collateral because the car is the collateral and loan protection is there through the Insurance.

balajeshi · 5th September 2009, 11:33

Thanks Kumar ...

It all started with Fiat's launch till that time i wasn't interested in a car purchase just enquired about Swift from one dealer around June and felt that it is a little out of my reach , forgot everything about owning a 4 wheeler for a year atleast then came the Fiat Grande punto it started making me crazy wanted to get behind the wheels ASAP.

So decided to look for the finance options then came this good deal from SBI which rekindled my wish of owning the punto. So went ahead with my driving lessons on the same day when i calculated my finance options.

And then applied for the SBI car loan around middle of my class[15 days before] and here i am now after a month waiting for a call from RACPC and booked a slot for driving license on coming tuesday through my driving school .

Hope the next week will be a big week for me [getting an appointment for my loan , driving license and booking of the car :-) ]

3rd September 2009, 22:08	#129
balajeshi BHPian Join Date: Aug 2009 Location: Bangalore Posts: 65 Thanked: 3 Times	wohoooo .. my car loan from SBI got approved [got a SMS Message] will go to the RACPC either this week or next .Now i can dream about my Punto ;-) .
	() Thanks

4th September 2009, 10:14	#131
balajeshi BHPian Join Date: Aug 2009 Location: Bangalore Posts: 65 Thanked: 3 Times	Thanks a lot man .. i am waiting for the call from RACPC today or start of next week .Will book a RED Punto[MJD Active] once i get the call as you said i need to produce the receipt for the downpayment . And one more thing is i am going for my driving license sometimes next week so it'll be like Kaustav straight away getting into a new car after my 10 hour driving license .[Have to drive in early morning and late night to get used to the car before going onto the traffic .although i drive a 2 wheeler for the past 3 years here]
	() Thanks

5th September 2009, 01:33	#133
IndrojitSircar Senior - BHPian Join Date: Apr 2009 Location: Kolkata/Delhi Posts: 2,318 Thanked: 972 Times	Well sometimes its a big hassel to get loans from nationalised banks and for people who do not have colateral to show most times the national banks do not give them a loan.Where as their interest rates a much lower and it affects in the EMI and Down Payment.
	() Thanks

5th September 2009, 11:33	#135
balajeshi BHPian Join Date: Aug 2009 Location: Bangalore Posts: 65 Thanked: 3 Times	Thanks Kumar ... It all started with Fiat's launch till that time i wasn't interested in a car purchase just enquired about Swift from one dealer around June and felt that it is a little out of my reach , forgot everything about owning a 4 wheeler for a year atleast then came the Fiat Grande punto it started making me crazy wanted to get behind the wheels ASAP. So decided to look for the finance options then came this good deal from SBI which rekindled my wish of owning the punto. So went ahead with my driving lessons on the same day when i calculated my finance options. And then applied for the SBI car loan around middle of my class[15 days before] and here i am now after a month waiting for a call from RACPC and booked a slot for driving license on coming tuesday through my driving school . Hope the next week will be a big week for me [getting an appointment for my loan , driving license and booking of the car :-) ]
	() Thanks