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-   -   Foreclosing an Auto loan - why the circus? (https://www.team-bhp.com/forum/indian-car-loans-insurance/96421-foreclosing-auto-loan-why-circus-12.html)

SBI is the best bank in my experience to take a Car loan if you plan to foreclose the loan in a short period. There is no foreclosure charge and NOC is given the same day, just you must keep required amount in your SBI account. My advice is not to foreclose the loan account if your vehicle resale value is less than the outstanding principal amount.

Guys, need some advice on Car Loan Fore-Closure.

I had availed a SBI Car Loan for a tenure of 7 Yrs in 2012. Wanted to know if it makes sense to Foreclose the Loan now after 5 Yrs. since i have the Funds available with me.
The Outstanding Amount is approximately 1,92,000 and i had taken a Loan of 5,55,000.
Only negative is i might get tempted to upgrade my Car since i have Closed the Loan.
Else, i was planning to keep it for 7 Yrs. till my Loan Tenure.

Please advice. Thanks.

There are few things to consider before you make the decision. Get the amortization schedule from the bank and calculate the interest that you have already paid and that you are going to pay. Most likely you would have paid most of the interest component and major chunk of your EMI would be going towards your principle component.
Find out from your bank if there any foreclosure charges and how much they are. Evaluate if it makes financial sense to pay almost all the interest on your borrowing and on top of it pay the foreclosure charges if there are any.
If you need a new car or not, that's for you and the family to decide:)

Hi

Need urgent advice. I need to act on this in 1 to 2 days. Hence speedy response will be helpful.

I have taken lease car plan from my current employer.

The car is Swift Dzire VDO (Optional) on Feb 2016
I paid EMI regularly and enjoyed tax benefits.

I am quitting my job when my loan tenure closure is just 4 months away This means I already paid 32 EMI installments. Only 4 EMI of INR 21,338 X 4 = Rs INR 85,352 is pending.

My question is simple -

while requesting for foreclosing why the leasing company is asking me to pay FCV which is 1.9 L in my case.

My understanding was leasing should ask just the out standing EMIs which is about 80K

I am ignoring Penalty+Foreclose Fees+Tax etc.

Following are the details the leasing company sent me -

• FCV Value: INR 189,573
• GST Rate: 18.85%
• GST Amount: INR 35,735
• Sub Total: INR 225,308
• Penalty: INR 1,422
• GST On Penalty @18%: 256
• Total: INR 226,985
• Less Security Deposit: INR 61,441
• Total Receivable: INR 165,544

I will have to spend INR 25,000 to bring the vehicle from Karnataka to West Bengal

Does it really make sense to spend approx 1.9 L to get the vehicle under my name?

By the way, no accidents, not even a scratch in its history, Has about 15K on its odometer.

As per lease agreement wordings:

Clause 11. At the conclusion of the lease for any reason, including due to the termination of Participant’s employment with MyCurrentEmployer for any reason, the Participant agrees to promptly return the Vehicle to MyCurrentEmployer in good condition, unless MyCurrentEmployer is able, in MyCurrentEmployer's sole discretion, to readily transfer the Vehicle to the Participant, the Participant’s new employer, or to another MyCurrentEmployer person. The Participant shall have a right of first offer to assume the lease or purchase the Vehicle for the residual value. In the event that the Vehicle is not able to be so transferred, the Participant will bear any liability for the shortfall, if any, between the sale price of the Vehicle and the residual value as stated by the leasing company

What does "residual value" mean .... is it FCV our outstanding EMI?

Thanks in advance

I have a car loan with SBI Whitefiled, Mahadevpura branch (BR code - 003028), and I want to foreclose the loan. I am currently staying in Kolkata and will be visiting Bangalore for the loan closure. Can some please tell me if I have to make any applications and wait for approval etc, or can I get the process completed in 2-3 days. I am not able to contact the branch and get the details.

I need this done to sell my car back in Kolkata. It is registered in Karnataka.

Best Regards.

Best Regards

I got my car loan from SBI foreclosed a couple of days back. The experience was seamless and the entire process took not more than 15 minutes. I just walked into the bank branch and told them I had to close my car loan. They deducted the pending amount from my savings account with SBI and gave me the NOC as well as Form 35(2 copies). It was a great experience and I came out smiling from the bank!

Thanks,
Ankur

Thank you very much Ankur for your help.
Can you please tell me the procedure for getting the ECS stopped. Will that be taken care of by the home branch or do I need to visit the CPC?

Best Regards
Rajib

Need information regarding car loan closure. I had taken a 5 year car loan from SBI but am closing it in 1.5 years itself as I don't see a point of paying 9.25% fixed ROI. Spoke to the bank manager and he asked me to transfer the Remaining Amount-1 INR. Post that asked me to visit branch and he will close the loan.

Now before heading to bank wanted to check a couple of things :

1. What all documents should I expect from the bank for closure? NOC and?
2. Do I need to visit RTO for removing hypothecation? My RC card doesn't have any mention of bank loan nor does Parivahan website?

TIA!!!:)