[Majumdarda]

Originally Posted by aargee

For us this was Rs 100 in cash


Yes, but there're only 3 choices, 1, 5 or 10th of every month

BTW, I SBIed too


2016?

Infact it can be ₹100 only if they want to charge for the services rendered. Reason being the stamp papers are of ₹600 valuation. I could have also taken that up with higher ups, but the next day I was travelling, so ignored it.

I wanted all the formalities to be completed before I go out of town, so that the amount is disbursed immediately to the dealer.

With regards to the choice date for EMI, I was informed that any date is possible as per customer's wish.

[aargee]

Originally Posted by Majumdarda

Reason being the stamp papers are of ₹600 valuation

What is this stamp paper stuff? We didn't see any such option; however there was Rs 1000+ collected through cheque as processing fee (probably towards BG verification etc). We're also yet to get our loan A/C number as well.

[Mr.Boss]

My Cibil score was always higher than 800 and ROI for my car loan was 10.65% in 2014. After demonetization the same was reduced and still at 10.xx% level only. Is there any means to get it reduced further? (matching the current market value)

[aargee]

Originally Posted by Mr.Boss

My Cibil score was always...Is there any means to get it reduced further? (matching the current market value)

Yes, like discussed above, if your CURRENT CIBIL score is more than 750, car loan becomes 8.75% instead of regular 9.25% in SBI. I think this is the lowest auto lending rate in India.

[Majumdarda]

Originally Posted by aargee

What is this stamp paper stuff? We didn't see any such option; however there was Rs 1000+ collected through cheque as processing fee (probably towards BG verification etc). We're also yet to get our loan A/C number as well.

Processing fee is different, which is 1000 odd. Not aware of what it's charged for.

Stamp Papers , which were purchased by the bank, for the agreement etc, are of valuation ₹500+₹100.
₹600 should have been the stamp duty charges and then ₹100 for writing all those stuff there (i think so). Usually this stamp duty charges (500+100+100 in my case) is waived off, but depending upon clauses and conditions.

I was informed that loan account number will get populated at my SBI banking account, during the first installment period. Good that you brought this up, I will take it up again after I reach Pune.

[pgginish]

Originally Posted by aargee

Yes, like discussed above, if your CURRENT CIBIL score is more than 750, car loan becomes 8.75% instead of regular 9.25% in SBI. I think this is the lowest auto lending rate in India.

How do I reduce the interest rate to 8.75? Do I need to submit any forms? Mine is running at 9.75 for last one year.

[hserus]

Originally Posted by pgginish

How do I reduce the interest rate to 8.75? Do I need to submit any forms? Mine is running at 9.75 for last one year.

For an already running loan speak to your bank manager. They may ask you to pay a processing fee that is typically 0.5% of the outstanding amount.

If you're in SBI - my suggestion would be to take advantage of the fact that there is no prepayment or early closure penalty, and anyway car loans don't get any tax benefit. So take every paisa of spare cash you have and stick it into loan repayments, close the loan early.

[Majumdarda]

After logging into the SBI portal, I could locate the loan account number. But I was surprised to note the interest rate being quoted as 9.25% p.a.

As per the agreement that I have with the bank, its supposed to be 8.75% p.a. for the first year and floating thereafter.

"The applicable interest on the loan amount will be at the rate of 0.75% margin above the MCLR which is presently 8% p.a. and thus the present effective rate of interest being 8.75% p.a. calculated on the daily balance of the loan amount at monthly rates..."

Can someone please throw some light into this. Seems to be a mistake at the SBI end.

[hserus]

That quote you have is just a floating loan. Is there any specific language in your loan contract that says the loan interest rate is fixed for a specific one year period?

If not, congratulations, your loan just floated up.

Originally Posted by Majumdarda

After logging into the SBI portal, I could locate the loan account number. But I was surprised to note the interest rate being quoted as 9.25% p.a.

As per the agreement that I have with the bank, its supposed to be 8.75% p.a. for the first year and floating thereafter.

"The applicable interest on the loan amount will be at the rate of 0.75% margin above the MCLR which is presently 8% p.a. and thus the present effective rate of interest being 8.75% p.a. calculated on the daily balance of the loan amount at monthly rates..."

Can someone please throw some light into this. Seems to be a mistake at the SBI end.

[Majumdarda]

Originally Posted by hserus

That quote you have is just a floating loan. Is there any specific language in your loan contract that says the loan interest rate is fixed for a specific one year period?

If not, congratulations, your loan just floated up.

I had signed agreement on 10th and today is 27th. Within a period of 17 days it floated up. Seems unlikely.

The manager while explaining had informed that it shall remain fixed at 8.75 for one year and then depending upon the rates, it shall float.

[hserus]

Originally Posted by Majumdarda

I had signed agreement on 10th and today is 27th. Within a period of 17 days it floated up. Seems unlikely.

The manager while explaining had informed that it shall remain fixed at 8.75 for one year and then depending upon the rates, it shall float.

Unless it is explicitly in the loan agreement - sales people will say anything at all to make you sign on the dotted line so beware.

As you have a verbal assurance from some official at SBI the best thing would be to go and ask him what is going on here.

[Majumdarda]

Originally Posted by hserus

Unless it is explicitly in the loan agreement - sales people will say anything at all to make you sign on the dotted line so beware.

As you have a verbal assurance from some official at SBI the best thing would be to go and ask him what is going on here.

The "statement quotes" were from the loan agreement. I have already sent an email to the concerned SBI Manager seeking more clarity on this.

[chncar]

I am interested in taking an SBI car loan and my car is booked but has a long waiting period and I was told that once they allot it I have 7 days to arrange the payment (could be just posturing/pressure from the sales guys, but let's assume that we take their statement at face value).

Is there any way that I can get the loan amount pre-sanctioned or pre-approved, so that I only have to do the specific car purchase related paperwork after the car is allotted, and not the entire approval process?

[hserus]

Easiest way is to ask your bank manager what they are prepared to accommodate in this regard.

[Majumdarda]

Originally Posted by hserus

Unless it is explicitly in the loan agreement - sales people will say anything at all to make you sign on the dotted line so beware.

As you have a verbal assurance from some official at SBI the best thing would be to go and ask him what is going on here.

Got the correct loan details updated with the bank end. Interest rate is now at 8.75% p.a. for the first year.