[PAVAN KADAM]

Originally Posted by NetfreakBombay

Dealers (and associated DSAs) they do not disclose the commission that bank is going to provide. This commission is a cost that is ultimately passed on to customer in terms of rates.

If the same customer approaches banks directly, he/she can cut a better deal.

Ultimately, they do provide a service I.e. single point of contact for car financing and car purchase. However, they do not disclose actual additional cost of this service.

This is just like RTO registration done by dealers. Customer gets convenience, but i charged 5 - 20k extra on top of actual RTO charges (even after accounting for 1k of "bribes").



Pls check your CIBIL score. Because of that score or some other criteria (like your employer or your address) bank does not want to take full risk.

Can you provide additional security? Like FDs that you might have to some NSC or any other long savings with a govt institution.

I think you need to get your facts right before writing something like this.

Rate Of Interest + Processing Fee is no way concerned to the DSA / Dealer pay-out (commission) from the Bank.

You get X+Y charged if you go thorough the DSA / Dealer and you get the same X+Y charged if you go directly through the Bank. You get the same treatment either ways.

I am saying this,Since i have been running a DSA since the last 11 years


And the reason for asking Co-applicant in the above case is infact "Financial Stability", 25 yrs of age for an applicant does invite the need of Co-applicant, and DSA / Dealer has not asked this, its by the Rule of the Bank. Why dont you increase the downpayment and take a funding of < 60%.

When i took my car loan, i was 23 yrs of age, the funding taken was 70%, and yes i had to get my Dad as a co-applicant.

[unknown]

Originally Posted by NetfreakBombay

Your Credit card(s) also contribute to credit score. And since last few months, even payments for Internet/Telephone.

So, do check CIBIL score. Based on good repayment record and good score bank might reconsider.

Next couple of days is a good time to talk to bank since most sales departments would have a monthly quota to meet.

I'm ordering credit report first thing tomorrow, yea it's month ending so might get some good deal, thanks mate.

Originally Posted by PAVAN KADAM

What a joke And the reason for asking Co-applicant in the above case is infact "Financial Stability", 25 yrs of age for an applicant does invite the need of Co-applicant, and DSA / Dealer has not asked this, its by the Rule of the Bank. Why dont you increase the downpayment and take a funding of < 60%. When i took my car loan, i was 23 yrs of age, the funding taken was 70%, and yes i had to get my Dad as a co-applicant.

So I guess without co-applicant it isn't possible to get a car loan for first time buyer, I'll increase my down payment offer then see what they say. Thanks for the well detailed professional information.

[sandsun7]

Originally Posted by NetfreakBombay

So, do check CIBIL score. Based on good repayment record and good score bank might reconsider.

A good CIBIL score surely helps in speeding up the process of granting loan if the amount is not so huge. I got my car loan of Rs. 3 Lakh from SBI approved in just a matter of 1 hour (yes, it is true!!). The manager just checked my CIBIL score, all documents like Salary certificate, IT returns etc and instantly told me that that the loan is approved. I was pleasantly surprised The loan amount was transferred to the dealer few moments after I paid the down-payment two days later.

[NetfreakBombay]

Originally Posted by sandsun7

A good CIBIL score surely helps in speeding up the process of granting loan if the amount is not so huge.

Most banks now use risk management systems.

Based on client's profile:

1. CIBIL Score
2. Employer, longevity in current job
3. Pincode of residence
4. % of "take home" that would be used to service the EMI

For a salaried person with good track record, loan process is done in just a few minutes if there is no issue identified by the system.

And if bank has "salary" account of the client, it is even easier since system has already slotted that profile for unsecured as well as secured loans.

So, for a good deal on rates do give a call to the bank that has your salary account.

[PAVAN KADAM]

Originally Posted by unknown

I'm ordering credit report first thing tomorrow, yea it's month ending so might get some good deal, thanks mate. So I guess without co-applicant it isn't possible to get a car loan for first time buyer, I'll increase my down payment offer then see what they say. Thanks for the well detailed professional information.

Why dont you try this..

1) Approach SBI
2) Ask them for a Over Draft for the purchase of a new car with hypothecation.
3) SBI will provide 70% of the invoice amount, directly paid to the Car dealer.
4) You will be charged 11% Rate of Interest per annum
5) There are no EMI's that u need to pay, apart from the interest amount
6) Anything above the Interest component you pay goes towards the Principal amount
7) You have the flexibility of paying any amount per month, even foreclose it within a month or a year.

[greenhorn]

Loans in India | Loan EMI, Rates, Calculators and Eligibility | ApnaPaisa

this site was recommended to me by a friend. He said it was easier than running around looking for multiple agents. they give you a quote only if you are eligible methinks

[KarthikK]

Originally Posted by unknown

Yes, ICICI/HDFC.
Reason they're giving is under age, 25 years isn't enough for self employed also it's my first car loan.

Yes. The minimum age eligibility for a self-employed person is 30, so anything below that would be rejected, especially in HDFC. Check the link below. It says a self employed person needs 3 yrs in current business + minimum age of 30

Online Personal Car Loan, Quick Car Loans, Instant Car Loans - HDFC Bank

I think Tata capital offers car loans for self employed above 21 yrs of age, so you could try there.

[unknown]

Originally Posted by PAVAN KADAM

Why dont you try this..

1) Approach SBI
2) Ask them for a Over Draft for the purchase of a new car with hypothecation.
3) SBI will provide 70% of the invoice amount, directly paid to the Car dealer.
4) You will be charged 11% Rate of Interest per annum
5) There are no EMI's that u need to pay, apart from the interest amount
6) Anything above the Interest component you pay goes towards the Principal amount
7) You have the flexibility of paying any amount per month, even foreclose it within a month or a year.

I'll try this mate, sounds very good, thanks for pointing it out
ICICI now asking to provide only pan card to check cibil, they saying they'll not add co-applicant, asking for checking only, Shall I trust them & give him ? I think they gonna co-applicant though.
In my ITR my income is shown through my dad business (dad is proprietor) & there are salary income also from the firm, bank says you've to add Co-applicant is must as company is not on your name.

Originally Posted by greenhorn

Loans in India | Loan EMI, Rates, Calculators and Eligibility | ApnaPaisa

this site was recommended to me by a friend. He said it was easier than running around looking for multiple agents. they give you a quote only if you are eligible methinks

I'll check this site mate, thanks for the heads up.

Originally Posted by KarthikK

Yes. The minimum age eligibility for a self-employed person is 30, so anything below that would be rejected, especially in HDFC. Check the link below. It says a self employed person needs 3 yrs in current business + minimum age of 30

Online Personal Car Loan, Quick Car Loans, Instant Car Loans - HDFC Bank

I think Tata capital offers car loans for self employed above 21 yrs of age, so you could try there.

Yes, I applied through HDFC SMART APPLY it didn't gave me any error while applying though, even axis bank says above 21 years can apply but in person they says that's for salaried.
Tata capinal another option, thanks man.

[PAVAN KADAM]

Originally Posted by unknown

I'll try this mate, sounds very good, thanks for pointing it out
ICICI now asking to provide only pan card to check cibil, they saying they'll not add co-applicant, asking for checking only, Shall I trust them & give him ? I think they gonna co-applicant though.
In my ITR my income is shown through my dad business (dad is proprietor) & there are salary income also from the firm, bank says you've to add Co-applicant is must as company is not on your name.

I'll check this site mate, thanks for the heads up.

Yes, I applied through HDFC SMART APPLY it didn't gave me any error while applying though, even axis bank says above 21 years can apply but in person they says that's for salaried.
Tata capinal another option, thanks man.

Hi Buddy,

For your Information and action.

CIBIL Ratings take a Negative plunge every time your application (Name + PAN Number) hits any Bank database.

Dont freak out with the loan thing. Take it slowly, any bank will give you a loan, just sizing up your provided details, its not a difficult thing to get your loan approved. 60% Funding will be a cakewalk as no banks goes through stringent scrutiny of your file.

You are at a ripe age to build up CIBIL score. Banking these days have gone Hi-Tech with the so called CIBIL. You have a long way to go in your business and life.

Please dont explore options.

[unknown]

Originally Posted by PAVAN KADAM

Hi Buddy,

For your Information and action.

CIBIL Ratings take a Negative plunge every time your application (Name + PAN Number) hits any Bank database.

Dont freak out with the loan thing. Take it slowly, any bank will give you a loan, just sizing up your provided details, its not a difficult thing to get your loan approved. 60% Funding will be a cakewalk as no banks goes through stringent scrutiny of your file.

You are at a ripe age to build up CIBIL score. Banking these days have gone Hi-Tech with the so called CIBIL. You have a long way to go in your business and life.

Please dont explore options.

Hi mate,

I wasn't aware of that negative rating by cibil
I'm hoping to get some positive answer from bank, i'm just new to this banking, learned so much from you & other fellow members

Thank you very much mate for your kind & wise words, cheers : )

[setuniket]

Axis Bank does it again!

Applied for car loan last friday, all requisite documents supplied and not proper information yet. Executive says loan application has been rejected, I ask for reasons, he refuses to give so. I ask him to connect me to someone senior in the retail asset centre, he refuses. Other executives are also tight lipped about the same.

States that he has moved the application again for consideration and here the car dealer is sitting on my head for down payment.

Have escalated the issue to their loans email, will see how the company responds.

[raju2512]

Here is an article on CIBIL rating

http://www.cibil.com/sites/default/f...ng-cir-ctc.pdf

[hrman]

Originally Posted by setuniket

Axis Bank does it again!

Applied for car loan last friday, all requisite documents supplied and not proper information yet. Executive says loan application has been rejected, I ask for reasons, he refuses to give so. I ask him to connect me to someone senior in the retail asset centre, he refuses.
Have escalated the issue to their loans email, will see how the company responds.

Even I had a not so good experience with Axis Bank. It took them over a week to respond to an email from me on the process to change the EMI date. And that despite me being a priority customer.
Since I took a loan for one year, the advance EMI threw my finances in a tizzy (it was not their fault though)

I have heard good reviews of SBI. Although they are more stringent with their process, they do not charge any foreclosure fee, and some time back, they had waived off processing fee or it was a flat Rs.1000/- I think. You can explore that.

[balechaparka]

According me better to go with National Banks.Long back took from Vijay Bank jayanagara Bangalore without any problem.

National banks are nowadays are user friendly, process is also fast.Because of high advertisements by private banks we try to get loan from them and end up with paying hidden cost.

[setuniket]

Thanks Hrman, after the debacle with Axis Bank, I contacted my dealer who approached SBI's GK-I branch. The loan there was approved in 2 days flat. On the same set of documents, and same credit score, the bank as more than happy to sanction loan. I didn't even add one extra document to the set provided to Axis Bank.

My concern is not that the bank refused my loan, the issue is that your sales executive after going through all documents assures that the loan will be approved and vanishes only to inform a week later that the loan was not approved on the ground that my profile is not eligible for loan. He could have straight away told me that sorry sir you are not eligible, I would have been more than happy and started looking for another bank/finance company .

Secondly despite my numerous efforts to know the reason for rejection, I have not been informed about it yet. The same bank voluntarily accepted the banking standards code which mandates providing information, refuses to part with the same.

Originally Posted by hrman

Even I had a not so good experience with Axis Bank. It took them over a week to respond to an email from me on the process to change the EMI date. And that despite me being a priority customer.
Since I took a loan for one year, the advance EMI threw my finances in a tizzy (it was not their fault though)

I have heard good reviews of SBI. Although they are more stringent with their process, they do not charge any foreclosure fee, and some time back, they had waived off processing fee or it was a flat Rs.1000/- I think. You can explore that.