[vinit]

I have got car loan from SBI with a floating interest rate. The rate is gradually decreased over the last 8 - 10 months and it is reflecting also in my online account, however, the EMI has remained the same. Does SBI reduce the tenure of the loan when the interest rate decreases ? I have neither received any notification in this regard from SBI nor it is appearing anywhere in my online account. Can anyone clarify ?

[mahesh_sn]

Originally Posted by ethanhunt123

The thing is - i am still not decide between Jetta, Octavia or Vento. So if i get the loan approved for the car with highest Ex-Showroom - can i later go and ask them to change the disbursal amount to a lower one if i buy the lower priced car ?

Irrespective of the car you want to buy, the bank will ask you for your income details and any other loans that you may have. Based on this data, they will let you know the maximum loan amount you are eligible for. Accordingly, you decide the car you want to purchase. Hope this helps.

[JohnyBoy]

Originally Posted by ethanhunt123

The thing is - i am still not decide between Jetta, Octavia or Vento. So if i get the loan approved for the car with highest Ex-Showroom - can i later go and ask them to change the disbursal amount to a lower one if i buy the lower priced car ?

Yes. There are two things.

Based on your income, relationship with bank and other parameters, first loan will be approved. Rather the maximum limit will be decided. For example, you are approved for upto 15Lacs loan. This is purely based on your 'credit score', how the bank sees you, nothing to do with the car.

Second, once the car is finalised, they will finalise the loan. This is agaisnt your car (with VIN and other identifications). Based on the bank, they may give 80% or 90% of the car's value as loan. And the amount will be disbursed to the delaer. Here you need to give the details of your car.

Usually the bank asks you for car details etc to process the loan with more or less same amount as the car's value. There is no need for giving car details. But if they insist you can always give the most expensive in your shortlist.

All the best, friend. Have a nice time with your new car.

[JohnyBoy]

Originally Posted by vinit

I have got car loan from SBI with a floating interest rate. The rate is gradually decreased over the last 8 - 10 months and it is reflecting also in my online account, however, the EMI has remained the same. Does SBI reduce the tenure of the loan when the interest rate decreases ? I have neither received any notification in this regard from SBI nor it is appearing anywhere in my online account. Can anyone clarify ?

If the EMI is not reducing, then your tenure should be reduced.
Visit the bank and ask them to give you an updated repayment schedule. You should be seeing the reduced tenure in that.
Ideally the bank should have informed you, but you know how things happen here.

[ethanhunt123]

I have to say i am extremely happy with SBI !!

I was looking for options for car loan online - checked the loan rates on SBI website and put in a enquiry using their online tool. Next day morning i got a call back from their central team - who told me someone from Bangalore would be contacting me. I got an SMS with the local Bangalore person name immediately. The Bangalore branch guy called me the following day (Sat) - since i was still finalizing the car & dealer - i told him i will give a call once its done. I finalized the dealer and gave him a call on Monday - he collected the documents from me on Tuesday morning (he was ready to come on Monday but i needed 1 day to arrange them). By Wednesday noon - loan was approved and i needed to go to the branch to just sign it once.

Extremely hassle-free and to top it - both the branch manager & the loan sales guy were super friendly and courteous. The interest rate is slightly higher than HDFC (0.1%) but absolutely no charges on part-payment or pre-closure.

Highly recommended !!

[rohitkadam]

Originally Posted by vinit

I have got car loan from SBI with a floating interest rate. The rate is gradually decreased over the last 8 - 10 months and it is reflecting also in my online account, however, the EMI has remained the same. Does SBI reduce the tenure of the loan when the interest rate decreases ? I have neither received any notification in this regard from SBI nor it is appearing anywhere in my online account. Can anyone clarify ?

SBI calculates interest on daily reducing balance method, which means your interest will reduce (with the decrease in interest rates) as the EMI is constant. You can download the statement online or visit the branch or RACPC servicing your loan.

[AVR]

Originally Posted by ILTDrive

I closed my car loan last week from SBI and thought will share the pleasant experience here.

I want to foreclose my SBI car loan and one option is to make a NEFT transfer for outstanding amount -1 Rupee. Could you possibly guide me on this?

Thanks
Aditya

[hserus]

Originally Posted by AVR

I want to foreclose my SBI car loan and one option is to make a NEFT transfer for outstanding amount -1 Rupee. Could you possibly guide me on this?

Thanks
Aditya

The less one rupee is because the loan needs to be closed manually at the branch you took the loan from, so you cannot make an online payment that takes the loan outstanding to zero,

So either figure out the loan outstanding and write a cheque payable to yourself, loan a/c [account number] for the full outstanding amount so that the loan can be closed at the bank. Or pay the amount less some token figure like Rs.1, Rs. 100 etc by NEFT and then give the bank a cheque for that balance amount to close it.

[eyesice]

I have taken a loan from SBI for my new car and now the EMI for the first month has not been deducted. I got an SMS from the bank saying that I missed the payment and a penalty of 573 Rs + additional charges would apply. Can someone guide me on why this happens? Is it because, the ECS with standing instruction was not properly processed from the bank's end?

[hserus]

Originally Posted by eyesice

I have taken a loan from SBI for my new car and now the EMI for the first month has not been deducted. I got an SMS from the bank saying that I missed the payment and a penalty of 573 Rs + additional charges would apply. Can someone guide me on why this happens? Is it because, the ECS with standing instruction was not properly processed from the bank's end?

Check with your bank and get the ECS mandate fixed. Meanwhile to avoid the penalty do a NEFT transfer from your bank account to the car loan account.

Request your SBI branch manager to reverse the penalty.

[eyesice]

Originally Posted by hserus

Check with your bank and get the ECS mandate fixed. Meanwhile to avoid the penalty do a NEFT transfer from your bank account to the car loan account.

Thanks hsresus. I Will talk to the manager tomorrow. I shall make a NEFT transfer meanwhile. Btw, is there a way to check the outstanding amount (or account statement) in the car loan account online?

[anjan_c2007]

Originally Posted by eyesice

I have taken a loan from SBI for my new car and now the EMI for the first month has not been deducted. I got an SMS from the bank saying that I missed the payment and a penalty of 573 Rs + additional charges would apply. Can someone guide me on why this happens? Is it because, the ECS with standing instruction was not properly processed from the bank's end?

I took a housing loan from the SBI in 2009. So many times due to mandate problems (change over to the multi digit account number on both sides) the transferee bank (SBI) to the transferor bank (UCO Bank), transfers were affected. I too got similar SMS's from SBI. Thereafter, I went to the concerned SBI Branch and paid cash three to four days after the default was done. No such penalty was levied ever on me, as that would have come to my notice since the mandate is for a specified amount. They also provide accounts statement of the loan and interest components cleared and those pending.

I am not sure about your branch but usually they are not as "PROMPT" like many other banks in deducting penalties.

Its more like Air India where you carry even 17-18 Kg as checked-in baggage, without incurring excess baggage levy. Private airlines are very prompt in reaching the purse.

[blackwasp]

Originally Posted by eyesice

. Can someone guide me on why this happens? Is it because, the ECS with standing instruction was not properly processed from the bank's end?

SBI/sister concerns have some issue of software upgrade going on which have resulted in problems in ECS. Recently took a car loan from State Bank of Bikaner and Jaipur and the manager advised me to issue cheques only for 3-4 EMIs as it'll take some time for normalcy. Have paid the first two EMIs with cheque so far. Even in my dealership, the SBI coordinator advised customers who took car loan from them to give cheques and ECS will be done after a while. Don't worry about penalties as most managers will understand and not take penalty from you .

[hserus]

Originally Posted by eyesice

Thanks hsresus. I Will talk to the manager tomorrow. I shall make a NEFT transfer meanwhile. Btw, is there a way to check the outstanding amount (or account statement) in the car loan account online?

You can ask them to provide net banking access. You may have to open a savings account under the same CIF number (customer number) so that net banking access can be provided, then you can access both accounts from the same login.

My suggestion - especially as you are having issues with ECS mandate from another bank plus want netbanking access .. a bit funnier than with cheques but read on for why I suggest this.

1. From your existing bank do a regularly scheduled NEFT transfer to your SBI savings account

2. Set up ECS from your SBI account to your SBI car loan.

Completely hassle free this way. Other than the regular EMI payments feel free to keep just the minimum balance in your SBI savings account.

Reason is - if you want to pre-pay the car loan that is a good idea, and easily accomplished by NEFT transfers direct to your SBI loan account from your existing bank account with the other bank.

You can pay off more of the loan principal that way, and you can do that with NEFT transfers (just note that you can't reduce the balance on your loan account to zero through NEFT so if you get close to that limit, leave a loan balance of Rs.100 or so and settle that by cheque to close off your loan account).

[deehunk]

I have heard from SBI that Citibank and ICICI are deliberately creating problem with ECS for other banks, me too went through this pain for 3 months and now have linked my old SBI account with existing SBI Car loan account. I was asked to sign a SI form and email the scanned copy. The flexibility to foreclose loans without any charges and minimum EMI's is the plus point of SBI.