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Which car loan to go for?

Discussion in 'Insurance & Loan Reviews' started by dj.nish, Sep 12, 2011.

  1. speedJet

    speedJet Superiore

    Messages:
    856
    Gurgaon
    I thought that ECS was mandatory. Given a choice I would like to skip ECS and give them cheques. It is always difficult to stop ECS. - say for example you prepay partial amounts, in that case the bank needs to reduce the tenure. This would mean that the SCs shall also have to stop early I.e Sbi shall have to stop the ecsat the proper time. It is higly unlikely that the bank would stop SCs at the correct time until and unless we are following up with them regularly
  2. dj.nish

    dj.nish Superiore

    Messages:
    543
    Mumbai
    ECS ain't mandatory. I opted for it as it is more convenient than signing 60 cheques at one go (moreover, these days banks give out 25 leave cheque book per quarter and charge you for additional cheques demanded!). I don't think stopping ECS would be a problem if you inform your bank in advance.
  3. I am buying Punto and got quotes from SBI and Axis
    Please suggest

    SBI - 12% Floating Rate of Interest - 36 months - 16610/- EMI
    Axis - 11.5% Fixed Rate of Interest - 36 months - 16335/- EMI

    Only deference is Part payments not charged at SBi and charged 5% in Axis Bank

    Thanks,
    _Shashank

    ---------- Post added at 03:43 PM ---------- Previous post was at 03:43 PM ----------

    I am buying Punto and got quotes from SBI and Axis
    Please suggest

    SBI - 12% Floating Rate of Interest - 36 months - 16610/- EMI
    Axis - 11.5% Fixed Rate of Interest - 36 months - 16335/- EMI

    Only deference is Part payments not charged at SBi and charged 5% in Axis Bank

    Thanks,
    _Shashank
  4. puntosat

    puntosat Superiore

    Messages:
    588
    Bangalore
    Simply go with SBI...

    part payment & pre payment without penalty exists...
  5. ramjn

    ramjn Staff Member Janitor

    Messages:
    5,244
    Chennai
    Linea 1.3
    Shashank, If I were you I will take the loan from SBI with my eyes closed. I would not even got quote from Private financiers. Remember the fact that the interest rate has almost peaked out and there are fair chances of rates going southwards. That said, you will be benefited if you opt for the floating rate at this time.
  6. dj.nish

    dj.nish Superiore

    Messages:
    543
    Mumbai
    I agree with ramjn here. Go with SBI. You will most probably benefit from rate reduction very soon. Even if SBI does not drop rates, you still benefit die to zero part-payment and foreclosure charges.
  7. Relativity

    Relativity Superiore

    Messages:
    853
    Chennai
    Sbi..............................................................................
  8. Ferrariscdr

    Ferrariscdr Amatore

    Messages:
    82
    Karnataka
    any public sector banks would be best - I can tell you why...my hyundai i have taken from HDFC loan and they can process easily within 2 days or so. Also, if you have salary account or if you negotiate with then they might reduce rates a bit. But disadvantage is - once done you cannot have flexibility of repaying loan without making any penalty, or you cannot make any balloon EMI payments.

    My loan taken for T-Jet is from SBI - the process is tiring because they call you so many times check your eligibility your credit default rating etc. if you qualify then only you are given loan. Processing fee is also less compared to these private banks. But once done you should feel relaxed because you have flexibility to pay more than your emi without any penalty and it will be adjusted with your principal amount. you can close loan after 6 months without any penalty. I dont think any banks offer such facility. Also, rates are highest these days and RBI is going to cut rate so do expect rates to come down. If you take on fixed rates you will not be able to get benefit for larger amount (purchasing T-jet etc)
  9. speedJet

    speedJet Superiore

    Messages:
    856
    Gurgaon
    Go with SBI. However, SBI had a floating rate of 11.25%. With the recent decrease in rates from RBI, these rates should have gone down. Please confirm on the loan rates once again and ensure that you are not being charged more

    Also, SBI loan is good if you are looking to pre-pay the loan and you do not have to make any prepayment charges. In case you are not planning to pre-pay then only in that case you should go for a private bank loan (provided you are aware of all hidden terms and conditions)
    Last edited: Mar 29, 2012
  10. dj.nish

    dj.nish Superiore

    Messages:
    543
    Mumbai
    I agree with Feerariscdr here, except one point.The loan approval process is not at all tiring/tedious anymore. If your papers are in order, it's a breeze. I got my loan sanctioned in less than 24 hours! That too, when the next day was a Saturday. And disbursement is also pretty quick.

    Even if you are not looking to make pre payment, SBI (or any other nationalized bank) is better as they do not have ANY hidden terms. Unless, if you are getting a fixed rate of interest difference of atleast 1-1.5%.

    OT - Speedjet - have you seen this (http://www.teamfiat.co.in/tfi-class...inea-tjet-plus-sale-chennai-7-lacs-inr.html)?

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