[aargee]

Originally Posted by Majumdarda

Got the correct loan details updated with the bank end. Interest rate is now at 8.75% p.a. for the first year.

WTH!!
I thought the EMI doesn't change for the entire tenure & if the EMI doesn't change then how come the interest rate change after first year?

[hserus]

Originally Posted by aargee

WTH!!
I thought the EMI doesn't change for the entire tenure & if the EMI doesn't change then how come the interest rate change after first year?

The emi absolutely won't change. When the interest rate changes, what goes up or down is the tenure (the time / number of instalments required to pay off the loan)

[Nilesh5417]

Originally Posted by chncar

I am interested in taking an SBI car loan and my car is booked but has a long waiting period and I was told that once they allot it I have 7 days to arrange the payment (could be just posturing/pressure from the sales guys, but let's assume that we take their statement at face value).

Is there any way that I can get the loan amount pre-sanctioned or pre-approved, so that I only have to do the specific car purchase related paperwork after the car is allotted, and not the entire approval process?

The answer is yes. I've a car loan from SBI that i took 3yrs ago and i had submitted all relevant quotation papers of the car to get full clarity on how much loan amount was i eligible for and get some kind of pre-approval for it. The idea behind providing a quotation being that they have a real life scenario to work out your eligibility and not just a statement that i want to buy a 10lac car and i want 8lacs of loan. But it in no way ties you up to that specific car. As far as i understand, this also helps you in case you decide to move to a different car later since maybe the waiting period gets to you.

[Majumdarda]

Originally Posted by aargee

WTH!!
I thought the EMI doesn't change for the entire tenure & if the EMI doesn't change then how come the interest rate change after first year?

Did you check for the loan account details? Is it visible now? For me, its visible at the online portal.

[aargee]

Originally Posted by Majumdarda

Did you check for the loan account details? Is it visible now? For me, its visible at the online portal.

No it's not linked to our SBI A/C; I'll better visit the loan branch & ask the manager about this or ask over the phone. Thanks

[chncar]

Originally Posted by aargee

No it's not linked to our SBI A/C; I'll better visit the loan branch & ask the manager about this or ask over the phone. Thanks

It would be a good idea to get it linked as well, this is technically possible. However phone support (via a call center) seems to be non-existant with SBI loans.

[aargee]

Originally Posted by chncar

It would be a good idea to get it linked as well, this is technically possible. However phone support (via a call center) seems to be non-existant with SBI loans.

The manager already confirmed to me that the loan A/C number will be linked to SBI S/B account; so I'm only walking to the branch office, no way going to call center.

[Majumdarda]

Any body any specific ideas as to what is PART PERIOD INTER.
I see an entry made on the 31st March 2017, into the Debit column (2432/-), which has effectively brought up the loan amount from 440581 to 443013.

[hserus]

Originally Posted by Majumdarda

Any body any specific ideas as to what is PART PERIOD INTER.
I see an entry made on the 31st March 2017, into the Debit column (2432/-), which has effectively brought up the loan amount from 440581 to 443013.

"Interest". Banks routinely charge that when they give a loan, you know .. it is debited monthly from your account.

[aargee]

Originally Posted by Majumdarda

Any body any specific ideas as to what is PART PERIOD INTER

Does this help - https://www.quora.com/What-is-part-p...it-implemented

[Majumdarda]

Originally Posted by hserus

"Interest". Banks routinely charge that when they give a loan, you know .. it is debited monthly from your account.

First time loan experience sir. I hope the pre equated EMI amount is not getting affected because of this.

[hserus]

Originally Posted by Majumdarda

First time loan experience sir. I hope the pre equated EMI amount is not getting affected because of this.

EMI is split into principal + interest. As you keep paying off the loan the interest component will reduce and you pay off much more of the principal.

If you have spare cash available I would suggest paying it into this loan (and into any other high cost loans you have such as credit card / personal loan etc - not that such are recommended to take unless absolutely necessary).

That way - prepaying loans ensures that more of the principal is paid off and your loan gets cleared much earlier.

[jayantvs]

Saw this on TOI:

SBI waives off processing fee upto 100 per cent on car loans and other personal loans. This is part of a 'festival bonanza' programme announced by the bank. The waiver of fees on car loans is valid for applications received till December 31, 2017

Source: http://timesofindia.indiatimes.com/b...w/60156736.cms

[Majumdarda]

Can someone please disclose the exact clause for vehicle inspection by SBI, even though I pay the EMIs in time and that there is nothing due or irregularity.

To me, if the inspection has to be done by the bank at all, and If I have not been a defaulter ever, then bank should come and inspect the asset at my place, free of charges. Furthermore I have a PPF and Savings account with the same branch.

Below is the "sms" extract that I received few minutes back.

"Dear sir,
Kindly visit SBI chinchwad branch today for inspection of your new vehicle. Please bring along the photo copy of vehicle insurance , tax invoice, RC, TC, delivery challan set of xerox copy of the documents. 10.30 to 4.00
Team Sbi"

It seems bank representative wants to pass on the task onto my shoulders.

[dailydriver]

Originally Posted by Majumdarda

Kindly visit SBI...xerox copy of the documents.

I am assuming that yours is a recent purchase. They might be suspicious about you actually utilizing the loan to purchase the car .

Don't worry, it is just a formality. At the maximum, they will take a photo of the car for their records. It is common for the bank to ask for the vehicle documents as it would be required for them to identify and seize the vehicle in case the loanee defaults on his payments. Also, until we pay off the last instalment of the loan, the car is technically not ours. In case of a total loss due to accident, the insurance company is bound to hand over the claim amount to the lending bank (to whom the car is hypothecated) and not to the owner of the car. In light of this, it is incumbent on the borrower to submit the photocopies of all vehicle related documents to the bank. Until recently, SBI used to also ask for the spare key to be deposited with them for the duration of the loan .

It might already be late, but just call the bank and enquire whether the presence of the car is really necessary.