New Rate Of Interest For Car Loans

hdi_pro · 5th May 2009, 13:20

Quote:

Originally Posted by hdi_pro

My Loan details with Central bank is as follows

Loan -10.5%(Floating rate
Prepossing fees - 2000
No Advanced EMI

Thanks
hdi.

Hey,

I took it last month and as per my understanding the loan rate is still the same.

Thanks
hdi.

nvldvr · 7th May 2009, 09:43

SBI probably has the best rate on offer as on date. 10 % for the first year. Will be changed as per the prevailing PLR from 2nd year onwards.

balugita · 18th May 2009, 07:02

Now Last Month April'09 Bank Of India Charges Interest @9.75%
Reduced From 10.25%

nvldvr · 19th May 2009, 01:42

9.75 is great news. With the new govt, rates will likely most head further down.

Gansan · 21st May 2009, 07:01

I am planning to take a loan from Bank of India. The rates are as follows:

Rate of interest 9.75% for a tenure of up to 3 years. EMI per lac Rs 3125 for a 3 year loan.

The rate is 10.25% for tenure of 4 - 6 years. EMI per lac is Rs 2548, Rs 2137 and Rs 1865 for 4,5 and 6 year tenures respectively.

Max loan amount is 75% of ex-show room price. I have to submit the proforma invoice and the receipt for the 25% amount along with the application. I have to submit a passport photo, I.T. returns for the past two years, address proof and ID proof. Though my salary account is with the same branch, I need a guarantor who also has to submit all the proofs (IT return, ID etc). I am informed processing will take 48 hours.They did not mention anything about processing fee or floating rate. Anyway I will check about this and update.

Best part is there will be no charges for pre-closure of loan. The EMI will be collected through ECS from my salary account. Public sector banks require a lot of paper work before you get the loan, but once the loan is processed one will be hassle free for the entire tenure.

Contrast this with the offer I received from HDFC Bank. I have a pre-approved loan for the 100% ex-show room price (max 7.5 L), no need for income/ID proofs or guarantor. But the rate of interest is 12.25% and the EMI per lac for a 5 year tenure is Rs 2212. EMI will be collected through ECS from my HDFC bank account, and I have to give 3 undated cheque leaves for 3 EMIs to them in advance. Processing charges will be around 1.5 - 2% I think and penalty for pre-closure is 5% of the balance amount. The agent has been pursuing me constantly and yesterday she called and informed she has got a "special" waiver of 0.5% for me if I apply immediately!

jkdas · 21st May 2009, 10:22

From an Advt for the Merc

balugita · 13th August 2009, 17:40

Quote:

Originally Posted by balugita

TO-DAY I MADE AGREEMENT WITH BANK OF INDIA FOR MY i10 CAR
LOAN AMOUNT - 2.40 LAKHS
INTEREST RATE -10.25%
TERM - 36 MONTHS
EMI - 7773/-
NO ADVANCE EMI

PAPERS GIVEN LAST TWO YEARS IT SAREL COPY
ID PROOF & ADDRESS PROOF PAPER
WITH IN 48 HOURS THEY RELEASE THE DRAFT

IT IS CHEAP ? ANY ONE COMMENDS ON THIS?

BALUGITA
COIMBATORE

cheers:

Now my loan rate of interest come down to 9% but same EMI amount
iam paying they reduce the period. Iam realy happy with them

balugita

aZa · 14th August 2009, 00:22

11.25 % Diminishing ... HDFC!

@ashokkabs .. whats that about the insurance ? i have a life insurance already going with HDFC

Sn1p3r · 14th August 2009, 11:02

Excuse me for I am naive at car loan calculations.

If EMI = 7773 for 36 months, Total payback = Rs 279828/-
Loan amount = Rs 240000/-
Interest paid = Rs 39828/-

Thus (39828/240000) *100 = 16.595 (Effective rate)

Are my calculations wrong? Please guide.

Thank you!

amohit · 14th August 2009, 11:59

Quote:

Originally Posted by Sn1p3r

Excuse me for I am naive at car loan calculations.

If EMI = 7773 for 36 months, Total payback = Rs 279828/-
Loan amount = Rs 240000/-
Interest paid = Rs 39828/-

Thus (39828/240000) *100 = 16.595 (Effective rate)

Are my calculations wrong? Please guide.

Thank you!

You are paying 39828 over a period of 3 years not 1 year.
However, due to the reducing principal funda involved, straight arithmatic dosent work very well and will show you a very rosy picture.

Regards,

rjstyles69 · 14th August 2009, 14:27

Here's what I got from SBH

No processing fees
1st year 8%
2nd year onwards 9%.

Sn1p3r · 15th August 2009, 10:17

Quote:

Originally Posted by amohit

You are paying 39828 over a period of 3 years not 1 year.
However, due to the reducing principal funda involved, straight arithmatic dosent work very well and will show you a very rosy picture.

Regards,

Thanks!

Thus 16.575/3 = 5.525% per year. I am doing ground work. I might be in for a car and will surely take loan, thus need to understand.

Can anyone come up with excel sheet with formulas?

Thanks in advance.

balugita · 15th August 2009, 18:24

Quote:

Originally Posted by Sn1p3r

Thanks!

Thus 16.575/3 = 5.525% per year. I am doing ground work. I might be in for a car and will surely take loan, thus need to understand.

Can anyone come up with excel sheet with formulas?

Thanks in advance.

EMI calculation link

Bank of India

Sn1p3r · 17th August 2009, 12:42

Quote:

Originally Posted by balugita

EMI calculation link

Bank of India

Thank you! Hmmm!!! so its not that simple calculation after all.

7th May 2009, 09:43	#17
nvldvr BHPian Join Date: Apr 2009 Location: New Delhi Posts: 600 Thanked: 772 Times	SBI probably has the best rate on offer as on date. 10 % for the first year. Will be changed as per the prevailing PLR from 2nd year onwards.
	() Thanks

18th May 2009, 07:02	#18
balugita Newbie Join Date: Jul 2007 Location: coimbatore Posts: 19 Thanked: 0 Times	now chage in rate of interest Now Last Month April'09 Bank Of India Charges Interest @9.75% Reduced From 10.25%
	() Thanks

19th May 2009, 01:42	#19
nvldvr BHPian Join Date: Apr 2009 Location: New Delhi Posts: 600 Thanked: 772 Times	9.75 is great news. With the new govt, rates will likely most head further down.
	() Thanks

21st May 2009, 07:01	#20
Gansan Senior - BHPian Join Date: May 2009 Location: Chennai Posts: 4,625 Thanked: 5,917 Times	Public sector banks are best! I am planning to take a loan from Bank of India. The rates are as follows: Rate of interest 9.75% for a tenure of up to 3 years. EMI per lac Rs 3125 for a 3 year loan. The rate is 10.25% for tenure of 4 - 6 years. EMI per lac is Rs 2548, Rs 2137 and Rs 1865 for 4,5 and 6 year tenures respectively. Max loan amount is 75% of ex-show room price. I have to submit the proforma invoice and the receipt for the 25% amount along with the application. I have to submit a passport photo, I.T. returns for the past two years, address proof and ID proof. Though my salary account is with the same branch, I need a guarantor who also has to submit all the proofs (IT return, ID etc). I am informed processing will take 48 hours.They did not mention anything about processing fee or floating rate. Anyway I will check about this and update. Best part is there will be no charges for pre-closure of loan. The EMI will be collected through ECS from my salary account. Public sector banks require a lot of paper work before you get the loan, but once the loan is processed one will be hassle free for the entire tenure. Contrast this with the offer I received from HDFC Bank. I have a pre-approved loan for the 100% ex-show room price (max 7.5 L), no need for income/ID proofs or guarantor. But the rate of interest is 12.25% and the EMI per lac for a 5 year tenure is Rs 2212. EMI will be collected through ECS from my HDFC bank account, and I have to give 3 undated cheque leaves for 3 EMIs to them in advance. Processing charges will be around 1.5 - 2% I think and penalty for pre-closure is 5% of the balance amount. The agent has been pursuing me constantly and yesterday she called and informed she has got a "special" waiver of 0.5% for me if I apply immediately!
	() Thanks

21st May 2009, 10:22	#21
jkdas Senior - BHPian Join Date: Sep 2005 Location: Thiruvananthapu Posts: 9,687 Thanked: 1,496 Times View My Garage	From an Advt for the Merc Attached Thumbnails
	() Thanks

14th August 2009, 00:22	#23
aZa Senior - BHPian Join Date: Mar 2006 Location: Noida / Delhi Posts: 1,595 Thanked: 25 Times View My Garage	11.25 % Diminishing ... HDFC! @ashokkabs .. whats that about the insurance ? i have a life insurance already going with HDFC
	() Thanks

14th August 2009, 11:02	#24
Sn1p3r Senior - BHPian Join Date: Jul 2009 Location: Germany Posts: 1,024 Thanked: 234 Times View My Garage	Excuse me for I am naive at car loan calculations. If EMI = 7773 for 36 months, Total payback = Rs 279828/- Loan amount = Rs 240000/- Interest paid = Rs 39828/- Thus (39828/240000) *100 = 16.595 (Effective rate) Are my calculations wrong? Please guide. Thank you!
	() Thanks

14th August 2009, 14:27	#26
rjstyles69 Senior - BHPian Join Date: Sep 2006 Location: Bengalooru.. Posts: 4,344 Thanked: 845 Times View My Garage	Here's what I got from SBH No processing fees 1st year 8% 2nd year onwards 9%.
	() Thanks