Team-BHP - HDFC Bank Car Loan Formalities

Hi, I am processing my car loan through HDFC Bank.
I am little uncomfortable on two points.

1. I was given a loan quotation initially with EMI etc. But when I asked about any proposal or offer letter of proposed loan and EMI he said that the once your loan disbursed the you will get all the details by mail with EMI. Interest Rate etc.

2. The bank is asking for 6 chques(Each of 3 EMIs). Since I am a account holder and applied for auto debit facility is this required?

Regards,
Sandip

1. Yes, you will get the breakup (Principal + Interest) after the loan is disbursed. While signing the loan, you rate of interest and EMI will be written in the paper by the agent...so dont worry

2. They take cheques of the entire amount in 4 or 6 cheques. In the case of Direct Debit, if there is no money in your account, that debit cannot happen and according to regulation bank fellows cannot penalize you...
If such thing continue to happen for 3 months, then they will put the cheque to withdraw the money and hence the cheque will bounce, and when the cheque bounces, it becomes a legal crime and the bank can trap you legally...

I have paid the entire amount for both my Car and Home Loan in 4-6 cheques...
Hence, dont worry of all cheques as long as you account is reserved with necessary cash... During the closure of loan you will get your cheques back....

Abhi

Quote:

Originally Posted by sandipwadje (Post 428045)

1. I was given a loan quotation initially with EMI etc. But when I asked about any proposal or offer letter of proposed loan and EMI he said that the once your loan disbursed the you will get all the details by mail with EMI. Interest Rate etc.

Yes, this is correct. The bank will call you when your loan is approved and you can choose when you want it disbursed (in case the vehicle delivery is likely to be delayed).

You will get a letter from the bank with details of each EMI, the date it would be debited, interest rate etc.

Quote:

Originally Posted by sandipwadje (Post 428045)

2. The bank is asking for 6 chques(Each of 3 EMIs). Since I am a account holder and applied for auto debit facility is this required?

Yes, this is standard practice. These cheques will be used in case your account hasn't got the money for auto debit. They will be returned when the loan is closed.

HDFC Bank also arranges for removal of hypothecation from the Registration Certificate at the time of closure.

If you provide them your mobile number, the bank also sends you SMS alerts each month after the EMI has been debited from your account. This alert comes from the car loan section.

HDFC Bank is one of the better banks in the car loan business in my experience.

Friends,
I took a loan from HDFC in early April 08 for my Tata safari from HDFC BANK in Mumbai. The entire loan sanction was a very smooth process. However, I have still not received my copy of the car loan agreement. I did call a few times and place a complaint with the customer care/support and i was told that it will be delivered within a week. This was 2 months ago.
Can someone enlighten me on how to go about this process of geting my copy of the agreement and how long does it take for banks to provide a copy of the same. All I have is a copy of the payment schedule.

Please advise.

Thats too long a wait. I got mine from ICICI within 2 weeks. Do you have any other relationships with HDFC bank besides this car loan? In case you do, try speaking to your personal banker, if you are a Classic Customer. Otherwise, call up customer support and threathen to withdraw all other relationships.

Trust me, it works!

Hello!

These are just my views and experience based on my dealings with HDFC 12 years ago. In my case, in 2008 I wanted to purchase a Hyundai i10 and I had numerous options to go through dealership but I went with HDFC (pre-approved customer) after one of my colleagues recommended to check out their HDFC ZipDrive process.

To be honest it only took me a day for the overall process after I logged into their Netbanking and entered my details. The loan amount was disbursed and money was transfered in car dealers account within a day. I got a e delivery voucher and disbursement confirmation in my email. Visited the car dealership on the same day and paid the margin money and signed a loan agreement leaflet and my car was invoiced on the same day.

The entire loan sanction was very smooth process which not only quick but extremely customer oriented.