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Good deal or a bad deal

Discussion in 'Insurance & Loan Reviews' started by clash81, Mar 10, 2011.

  1. clash81

    clash81 Regolare

    Messages:
    398
    Bangalore
    I am newbie here and i am planning to buy a Fiat Punto 90hp. Moving on to my issue, I approached a dealer in Bangalore and he offered me a quote, I will reproduce the same here even though i am unsure if i am allowed to do so. As my knowledge about loans and other financial aspects is quite underwhelming, i hope some members here might help me out to understand, if am getting a decent deal here.

    Loan Amount : 5,30000 and the loan is planned from SBI.
    Term : 60 mnths

    The emi calculation provided is as follows.

    1-12 = 11067 @ 9.25%
    13-36 = 11337 @ 10.25%
    37-60 =11602 @ 11.25%


    All the interest rates are on a floating basis. I have no prior experience of owning a car or going in for a loan of this magnitude. Is this a good deal or a bad deal? Can i negotiate over this with the dealer and i if i am to negotiate, what should i do it over? ::O :anyone
  2. nkapoor777

    nkapoor777 Regolare

    Messages:
    467
    New Delhi
    Have you found out what rates are being offered by other banks? If you can post some here, I will do the math and get back. Then you can decide how the the escalating rate offered by SBI stacks up against others which may be offering constant rates.
  3. clash81

    clash81 Regolare

    Messages:
    398
    Bangalore
    @nkapoor777 : Thanks a lot for the reply. I am not interested in any other banks other than SBI, i am trying for some other nationalized banks too. Anyway, i got another quote from another dealer and that looks better and it is in line with loans some of my friends have already availed from SBI. I don't have all the details about the quote right now, i will surely update the thread with the information.

    Once again thank you for the reply. :)
  4. royj

    royj Esperto

    Messages:
    1,306
    Trivandrum
    SBI has standard rates that are comparable with other banks and probably better than private sector banks.
    I too have taken loan from SBI, but the rates are slightly different at 8%, 8.5% and then the rate prevailing at that time. When the loan started that was expected to be 10.25% now it must be 11.25%
    My comment is that this rate is reasonable. I would advise you to go ahead with this and if you are able to pay a lump sum amount, do that after one year. That will allow you to get the most out of the low interest rates.
  5. This looks a good deal.

    Nationalised Bank's are far better than the other ones interms of hidden charges and loan closures.The Only pain is the lengthy process to approve and grant a loan. Post sanctioning the loan, it's a breeze.

    My Loan with HDFC was recently Pre-closed. They charged me 5 percent on the outstanding while they waived every charges when i took the loan.
  6. nkapoor777

    nkapoor777 Regolare

    Messages:
    467
    New Delhi
    When it comes to pre-closure, you can't beat the nationalised banks. I haven't done any business with them so far but heard from many people that SBI and others either charge a very nominal prepay penalty or do not charge any penalty for preclosure. 5% prepay penalty is daylight robbery bnzjon!
  7. clash81

    clash81 Regolare

    Messages:
    398
    Bangalore
    Thanks for all the suggestions.... I went to another dealer and got another quote. The details are as follows.

    Loan Amount : 5,32000 and the loan is planned from SBI.
    Term : 60 mnths

    The emi calculation provided is as follows.

    1-12 = 11034 @ 9.00%
    12-24 = 11305 @ 10.00%
    37-60 = Floating rates.

    The fixed rates applicable till the 24th month is making me think that this one is a better deal than the other one. I have not made intricate calculations as yet to see if this will work better than the older one.

    The last dealer told me there was about 2% penalty for preclosure. I am yet to gather more details from this dealer about the preclosure and other details. On the onset, does this look a better deal?
  8. clash81

    clash81 Regolare

    Messages:
    398
    Bangalore
    Just an update from my side. I have gone by the second quote and has booked the vehicle.

    the loan process with SBI will get started on Monday - fingers crossed about that. ::O
  9. Bala

    Bala Esperto

    Messages:
    1,070
    Villupuram
    Forget the loan,buying a punto itself is a bad deal.
  10. clash81

    clash81 Regolare

    Messages:
    398
    Bangalore
    :confused

    why so bala?

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