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Originally Posted by balajird @Predator, it would be more helpful if you can explain whether the same ballooning interest (or whatever you name it, apologies, those are greek and latin for me) holds good for home loans as well. |
Balaji, I'm sorry I cant give you a clear picture about home loans. They're an altogether more vast area of finance, with (optionally) much more complicated structures and longer tenures. However, as far as I think, most housing loans available in the market are of a ballooning nature. Do check with an expert on home loans.
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Originally Posted by wildon Got a quote directly from Axis bank
Loan Details :
Rate of Interest they are saying @10.50%
No fees other than Rs.500 as Stamp Duty
They told me over phone that its fixed interest rate for the loan period. But they have not yet confirmed me these part through wriitten format . |
Wildon,
In this market, its difficult getting a floating rate loan from a private bank. In any case, a fixed rate loan seems like a good idea, now that the banks have discussed with RBI and confirmed that interest rates will go up by next quarter.
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Originally Posted by ArunV OT: Is ther any minimum amount for loan? like a certain percentage of car value.
One of my friend was trying to get a loan for 1 Lac and was denied saying that the amount was too less. |
Nope, there's no minimum amount for a loan. The only possible reason I see is because your friend was looking for a lengthy repayment period for a small amount (1 lac), and the sales guy didnt want to go through the hassle since he wouldnt have earned much commission. In case you applied through an agent, report the whole incident to the bank he represents.
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Originally Posted by shuvc For SBI, does processing happen faster if one has an account with the bank? |
No, SBI (and all nationalized banks) have to go through the same approval process regardless of whether the customer is existing or new to the bank. The only possible benefit you'll have is that you can choose to repay through ECS rather than write out 36/48/60 cheques.
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Originally Posted by aZa HDFC loan mela is on ...
50% off on processing charge
.5% off on the interest rate
Loan on PHONE thing is also there, this is a pre-approved loan if u have an account in HDFC. |
Processing charge? What processing charge? Boss, wake up and smell the coffee! This is not a corporate loan of crores which involves a complicated structuring, lengthy credit approvals, extensive documentation and ROC interference (incidentally, thats what I do for a living - sell and maintain corporate relationships
).
An auto loan is like an FMCG product by comparison - standardized documentation, templated credit approval, and revenue by sheer numbers! Trust me, there's no real processing which needs to be done. All you do is end up fattening the realization packet for the bank.
So ignore fancy sales pitch like "50pct off on processing charge" and just go on demand waiver of the entire thing. They'll first cry, then plead, then blackmail you that the approval can't happen. But trust me, if your credentials are in order, the approval will happen in a flash!
As for the "pre-approved" loan part, read my comments in one of the previous posts.
Disclaimer: This is just friendly advice from one auto-enthusiast to another. Most auto loan people wont be pleased that I'm letting you in on their secrets.
Now for 2 more bits of advice (not specific to any one's comments).
First, auto loans which promise a lower interest in the first year (and higher in the second year) are good
only if you're not taking a ballooning interest scheme. In the latter, you pay a minor portion of principle and
majority portion of interest. So the discounted rate you're getting on the first year wont really help your principle repayments in the later years.
Second, and this is purely from experience. For people looking for loans from OBC, SBH and other smaller nationalized bankers. There wont be much difference in approval and documentation procedures as compared to SBI. However, these banks have far smaller infrastructure than big brother. So if you're looking for alterations during the term of the loan - like location change (Sir, please arrange to move my account from Kolkata to Ernakulam and take fresh cheques) or selling off the car (Sir, please release hypothecation on said car and I shall adjust principal outstanding) remember that a fair bit of running around will be in order.