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Loan Foreclosure

Discussion in 'Insurance & Loan Reviews' started by bnzjon, Jul 23, 2010.

  1. abk1980

    abk1980 Amatore

    Messages:
    246
    Mumbai
    Bnzy, hope you keep the following points in mind:
    - You get rebate on IT on home loan - you can show the interest amount as loss on the house. This is apart from using upto 1Lacs of the Principal amount repaid for section 80C. So it is a good loan to keep.
    - There is no such provision as far as car loans are concerned - interest paid there is not a loss that you can offset. But since it does not make sense to repay because of the charges, lets not talk about it.
    Suggestion: I think putting the money you intend to repay in an FMP / money market fund for the duration of your car loan should make sense. Tax liability on these would be low (inflation adjustment / LT capital gains). And you can continue to take full (effectively 30%) rebate on account of interest outgo on home loan. Risk is also very low compared to equity funds. The assumption is that your return would be higher than your home loan rate. This is especially true in case you have taken one of the teaser rates from SBI.
    Never go by what a sales chap says, whether a car dealer or a bank - they are all out to make a quick buck at your expense. Trust only the words of the agreement.
  2. Well I foreclosed it because I intended to take a home loan and my eligibility came down drastically because of the car loan. But yea doesn't make much sense foreclosing it in the initial years.
  3. sharadverma

    sharadverma

    Messages:
    58
    Delhi
    Even axis bank also carries the same rule of 5% and they do not wave off
  4. SOOZ_P

    SOOZ_P Regolare

    Messages:
    316
    BANGALORE
    Bangalore
    Grande Punto 1.3
    I have recently closed down my auto loan. Bank has sent me some NOC docs, one for Insurance and another one for RTO which have validity of 6 months What should i do with these NOCs? Whether I have to Submit something to RTO or insurance company?
  5. vj_v1

    vj_v1 Superiore

    Messages:
    933
    Hyderabad
    I din't have to intimate the insurance company.

    The rto in hyd needs 2 copies of the bank attested NOCs along with a form. I think no: 21 for removal of bank hypothecation off the Registration.

    Sent from my HTC Sensation using Tapatalk 2.

    D
  6. SOOZ_P

    SOOZ_P Regolare

    Messages:
    316
    BANGALORE
    Bangalore
    Grande Punto 1.3
    Thanks VJ, will check and update. Tomorrow going to RTO to get it done.
  7. SOOZ_P

    SOOZ_P Regolare

    Messages:
    316
    BANGALORE
    Bangalore
    Grande Punto 1.3
    Guys,

    I went to Indira Nagar RTO today to cancel my Hypothecation. Here
    are the steps which you should follow,

    1- Bank NOC and form35-Original
    2- Insurance- 1 Photocopy
    3- Emission Test Certificate- 1 Photocopy
    4- One Cloth envelop with stamp- Available in ground floor- Rs.25
    5- 2challans from RTO room no.1- Rs.100
    6- Smart Card-Original

    Pin it together and hand over in RTO Room number 13, counter no. 6You will get a acknowledgement stating your request under processing and the documents will be sent to your address by speed post once ready. This process will take maximum 30 days and during the period the acknowledgement will be enough as a proof of your RC.

    Hope this will help.<!-- google_ad_section_end -->
    Last edited: May 24, 2013
    3 people like this.
  8. Cubbie

    Cubbie Superiore

    Messages:
    579
    Bangalore
    Pls kindly suggest, who will issue form 35 ? Is bank or RTO ? and do we need the get signature on that from bank etc?
  9. SOOZ_P

    SOOZ_P Regolare

    Messages:
    316
    BANGALORE
    Bangalore
    Grande Punto 1.3
    Bank will send you the form 35 including the NOC. You just need to sign in Couple of places as owner of the vehicle.
  10. vj_v1

    vj_v1 Superiore

    Messages:
    933
    Hyderabad
    In my experience with SB of hyderabad. I had to buy a couple of form 35 from near the RTA myself and get it authenticated at the bank.

    Sent from my HTC Sensation using Tapatalk 2.

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