Help Needed : HDFC Personal Loan

mobike008 · 25th August 2008, 16:22

A friend of mine is interested to opt for a 3L personal loan. He got the following offer from HDFC bank

Option 1
Amount : 3,00,000
Interest Rate: 14% diminishing
Processing fee: 1% ( Rs.3000)
EMI/Lac ( 36 Months) : Rs.3418
EMI/Month ( 36 Months) : Rs,10,254

Option 2
Amount : 3,00,000
Interest Rate: 14% diminishing
Processing fee: 1% ( Rs.3000)
EMI/Lac ( 48 Months) : Rs.2733
EMI/Month ( 48 Months) : Rs,8,199

Can someone advise if this is a good offer and the current market rate prevalent? Is there a scope for negotiation on above?

shankar.balan · 25th August 2008, 16:58

Quite reasonable deal IMO going by current market conditions.
Ask him to also check on whether he can make part pre-payments if he gets a windfall. And plse check how much he will incur as Foreclosure charges in case he decides to foreclose after say, a year and a half, when about 50% of the tenure is finished.
Typically if one can afford the EMI, for Personal loans, a 3 year term is better than a longer term.

Quote:

Originally Posted by mobike008

A friend of mine is interested to opt for a 3L personal loan. He got the following offer from HDFC bank

Option 1
Amount : 3,00,000
Interest Rate: 14% diminishing
Processing fee: 1% ( Rs.3000)
EMI/Lac ( 36 Months) : Rs.3418
EMI/Month ( 36 Months) : Rs,10,254

Option 2
Amount : 3,00,000
Interest Rate: 14% diminishing
Processing fee: 1% ( Rs.3000)
EMI/Lac ( 48 Months) : Rs.2733
EMI/Month ( 48 Months) : Rs,8,199

Can someone advise if this is a good offer and the current market rate prevalent? Is there a scope for negotiation on above?

Mission_Safari · 25th August 2008, 17:01

This is quite reasonable. I got a 5L loan for 3 years at 14.5% interest recently from ICICI. My EMI works out to 17210 per month. But no part payments are allowed my personal loan with ICICI (i think this is the norm in other banks too, not sure though)

mobike008 · 25th August 2008, 17:07

Thanks M_S and Shankar. Even i told him this looks to be a decent deal. Will ask him to check on the fore-closure part as well.

Also, is 1% processing fee mandatory? No scope for negotiation here?

iceman91 · 25th August 2008, 17:08

Totally agree with shankar, check wiht the foreclosure procedure and charges.
I too got a similar offer from Citibank and just for the heck of it I asked for details.
For 3L they too were asking around 8200 and 10300
It seems good but bargain to get the processing fee waived off, it might work

praJEEP · 25th August 2008, 17:11

Thats the pretty reasonable offer your friend has got, i would suggest him to go for 24 months his emi will come to 14,404, he will be paying intrest 45696/- and again it depends upon his financial ability if he feel's he is comfortable let him go for 24 months if not nothing more than 36 months.

Mission_Safari · 25th August 2008, 17:12

Quote:

Originally Posted by mobike008

Also, is 1% processing fee mandatory? No scope for negotiation here?

Atleast, i didn't have that option. The ICICI bank personnel i was dealing with said the processing fee cannot be waived off.

mobike008 · 25th August 2008, 17:25

Thanks guys. I don't think he can afford a 24 month tenure but, i will certainly ask him to opt for 36 months.

25th August 2008, 16:22	#1
mobike008 Senior - BHPian Join Date: Sep 2006 Location: Seattle, WA Posts: 11,982 Thanked: 17,043 Times View My Garage	Help Needed : HDFC Personal Loan A friend of mine is interested to opt for a 3L personal loan. He got the following offer from HDFC bank Option 1 Amount : 3,00,000 Interest Rate: 14% diminishing Processing fee: 1% ( Rs.3000) EMI/Lac ( 36 Months) : Rs.3418 EMI/Month ( 36 Months) : Rs,10,254 Option 2 Amount : 3,00,000 Interest Rate: 14% diminishing Processing fee: 1% ( Rs.3000) EMI/Lac ( 48 Months) : Rs.2733 EMI/Month ( 48 Months) : Rs,8,199 Can someone advise if this is a good offer and the current market rate prevalent? Is there a scope for negotiation on above?
	() Thanks

25th August 2008, 17:01	#3
Mission_Safari BHPian Join Date: Jan 2008 Location: Chennai Posts: 449 Thanked: 8 Times	This is quite reasonable. I got a 5L loan for 3 years at 14.5% interest recently from ICICI. My EMI works out to 17210 per month. But no part payments are allowed my personal loan with ICICI (i think this is the norm in other banks too, not sure though)
	() Thanks

25th August 2008, 17:07	#4
mobike008 Senior - BHPian Join Date: Sep 2006 Location: Seattle, WA Posts: 11,982 Thanked: 17,043 Times View My Garage	Thanks M_S and Shankar. Even i told him this looks to be a decent deal. Will ask him to check on the fore-closure part as well. Also, is 1% processing fee mandatory? No scope for negotiation here?
	() Thanks

25th August 2008, 17:08	#5
iceman91 Senior - BHPian Join Date: Nov 2004 Location: melbourne/banga Posts: 1,961 Thanked: 36 Times View My Garage	Totally agree with shankar, check wiht the foreclosure procedure and charges. I too got a similar offer from Citibank and just for the heck of it I asked for details. For 3L they too were asking around 8200 and 10300 It seems good but bargain to get the processing fee waived off, it might work
	() Thanks

25th August 2008, 17:11	#6
praJEEP BHPian Join Date: Aug 2007 Location: Bengaluru Posts: 537 Thanked: 12 Times	Thats the pretty reasonable offer your friend has got, i would suggest him to go for 24 months his emi will come to 14,404, he will be paying intrest 45696/- and again it depends upon his financial ability if he feel's he is comfortable let him go for 24 months if not nothing more than 36 months. Last edited by praJEEP : 25th August 2008 at 17:28. Reason: changed the genders.
	() Thanks

25th August 2008, 17:25	#8
mobike008 Senior - BHPian Join Date: Sep 2006 Location: Seattle, WA Posts: 11,982 Thanked: 17,043 Times View My Garage	Thanks guys. I don't think he can afford a 24 month tenure but, i will certainly ask him to opt for 36 months.
	() Thanks