Bank Loan and deals

[princesirohi]

well... after repaying the entire amount of that bike loan, i do not have any other loan emi's to show that i am pying my emi's on time after that bad phase of life.
coz it seems nobody is ready to give me a loan.

[Doga]

I have been associated with personal loan industry since last 4 years and can tell you for a fact that Personal Loan as a category is the most expensive category of all loans as this is an unsecured loan.

Unless some bank / finance company has a specific tie-up with your company, it will never be cheaper than auto loan.

Also you need to pay more if you wish to prepay or foreclose.

Vishwas bhai, the quotes that I got from HDFC was 14.25 RR for a personal loan and 15.xx RR(I dont remember the exact figure) for a 2 wheeler loan.
The personal loan worked out to be cheaper for me. I dont know if the loan agent was on dope or not when he quoted me the 2 wheeler loan interest btw

And yeah both the rates were 'special' rates for the employees of the company I work for.

[Rahul.Gvli]

Guys, please carry on your discussion on CIBIL please... there is someone who is looking for a way out just like prince...
It happened to me for Credit card bills. and that too not for one but for TWO credit cards. Some payments were not paid on time. (Recession period) Unwillingly joined the defaulter's club. Did final settlement bargainings. Paid the final amount in two installments. I have receipts for both but not the NOC from any.
So as of now my CIBIL record is gone for a toss. and I don't know how to improve it...
My application for credit card already got rejected twice by HDFC even though my salary account was with HDFC only.

[trustvishwas]

well... i do not have any other loan emi's to show that i am pying my emi's on time after that bad phase of life.
coz it seems nobody is ready to give me a loan.

Then you are between a rock and a hard place. Unless you can demonstrate timely repayment, your application would be rejected by most.

I have met several guys who had never obtained any loan or credit card. Hence their CIBIL score was Zero (as CIBIL does not have any repayment history for the customer). Their applications were also rejected. I know that it is stupid and unfair. . . but hey. . . I am not the one making rules.

Some options open for you are -

1. Apply to a Co-operative Bank.
2. Apply to a nationalised bank which looks at only CIBIL score. (I believe Bank of India does that. . . though not sure)
3. Apply as a joint holder with another earning member of your family and put your name as first applicant on loan application. This way, you can get a loan, repay it and improve your credit.

Guys, please carry on your discussion on CIBIL please... there is someone who is looking for a way out just like prince...
It happened to me for Credit card bills. and that too not for one but for TWO credit cards. Some payments were not paid on time. (Recession period) Unwillingly joined the defaulter's club. Did final settlement bargainings. Paid the final amount in two installments. I have receipts for both but not the NOC from any.
So as of now my CIBIL record is gone for a toss. and I don't know how to improve it...
My application for credit card already got rejected twice by HDFC even though my salary account was with HDFC only.

All the options conveyed to prince apply to you as well.

The third option is the easiest.

Try with nationalised banks. Be absolutely open about your CIBIL score. They would try to help you out as much as possible. Remove the negative tag everyone has for Nationalised Banks.

Vishwas bhai, the quotes that I got from HDFC was 14.25 RR for a personal loan and 15.xx RR(I dont remember the exact figure) for a 2 wheeler loan.
The personal loan worked out to be cheaper for me. I dont know if the loan agent was on dope or not when he quoted me the 2 wheeler loan interest btw

And yeah both the rates were 'special' rates for the employees of the company I work for.

People have a habit of quoting low interest rates and customers are then surprised to find out that they are flat rates i.e. interest will be charged on complete loan amount irrespective of your repayment.

Another trait observed is to quote a low interest rate and then convey an EMI which is for much higher interest rate. Most customers do not know how to calculate EMI for a given interest rate. That is what happened to my friend who wanted to obtain a loan from Bussan finance. He was told that the interest rate is on reducing balance but was quoted EMI at Flat rate. This is simply cheating but people fall for it so these guys flourish.

[Rahul.Gvli]

......
All the options conveyed to prince apply to you as well.

The third option is the easiest.

Try with nationalised banks. Be absolutely open about your CIBIL score. They would try to help you out as much as possible. Remove the negative tag everyone has for Nationalised Banks........

Thanks for the info.. and as for the options you provided...

1. Apply to a Co-operative Bank.
Won't serve the purpose as getting a loan is not my only requirement (at least for now). I want to actually improve the CIBIL record.
2. Apply to a nationalised bank which looks at only CIBIL score. (I believe Bank of India does that. . . though not sure)
How to get the information that a perticular bank checks CIBIL score only and not a complete credit history? Asking sales person won't help much, I guess. Do you have some more names accompanying BOI...??
3. Apply as a joint holder with another earning member of your family and put your name as first applicant on loan application. This way, you can get a loan, repay it and improve your credit.
Yeah, sounds much feasible...

[trustvishwas]

Thanks for the info.. and as for the options you provided...

1. Apply to a Co-operative Bank.
Won't serve the purpose as getting a loan is not my only requirement (at least for now). I want to actually improve the CIBIL record.

For improving CIBIL score, you need to show timely repayment. To show timely repayment, you need to have some kind of loan.

2. Apply to a nationalised bank which looks at only CIBIL score. (I believe Bank of India does that. . . though not sure)
How to get the information that a perticular bank checks CIBIL score only and not a complete credit history? Asking sales person won't help much, I guess. Do you have some more names accompanying BOI...??

Yes. Like I said earlier, walk into the loan department of any nationalised bank and clearly state your poor repayment history. If they don't want to give you loan, they would say so. If they want to help you, they will tell you a way out.

I do not have any specific info about which banks rely only on CIBIL score.

3. Apply as a joint holder with another earning member of your family and put your name as first applicant on loan application. This way, you can get a loan, repay it and improve your credit.
Yeah, sounds much feasible...

Yes. It is the easiest way.

[sunilyo]

Most customers do not know how to calculate EMI for a given interest rate.

Can you share the formulae for calculating loan interest both flat and RR?

Will help me and others as well .

[aargee]

Came across this offer; passing to the benefit of the community as I've no personal benefits

Standard Chartered Personal Loans

[trustvishwas]

Can you share the formulae for calculating loan interest both flat and RR?

Will help me and others as well .

It is an excel file and xbhp does not allow .xls files to be attached. So I have zipped it and uploaded. This file enables you to calculate your EMI on reducing balance interest loan.

You can fiddle around with the interest rate to arrive at EMI quoted to you so that you can find out the actual interest charged.

Came across this offer; passing to the benefit of the community as I've no personal benefits

Standard Chartered Personal Loans

In this scheme, they are offering 50% discount on processing fee. It is lot of bull. Processing fee is just profit earned by them so can anyways be negotiated down to zero.

Also they have offered 1% lesser interest rates but the interest rate is not actually mentioned.

[trustvishwas]

I should also mention that if you are opting for a loan from private company / bank, it is always better to apply around 15th of a month and convey that you wish to obtain loan by end of month.

Once it is approved, refuse to sign on the agreement. Tell them that you need the interest to be much lower.

Due to month end target achievement pressure, you will find many amazing deals.

[aargee]

Also they have offered 1% lesser interest rates but the interest rate is not actually mentioned.

Oh!!! shoots!!! I read it as 1% interest!!! How easy it is to mislead anyone!!!

I should also mention...amazing deals.

FANTASTIC!!! No one...I mean...there's absolutely no one who can match your negotiation skills Ji; You Rock!!! Guru Ji!!!

[Rahul.Gvli]

^^^ wow... now that's called some knowledge sharing....
Thank u sir...

[trustvishwas]

FANTASTIC!!! No one...I mean...there's absolutely no one who can match your negotiation skills Ji; You Rock!!! Guru Ji!!!

Not really. . . .My wife beats me all the time by her negotiation skills

[Eshan-P180]

Not really. . . .My wife beats me all the time by her negotiation skills

Thank you Vishwas for reduction of loan interest from 29.75% to 12.25%

Thats all from myside.

Me and Vishwas had calculated the loan for my R15 and busan finance which is provided by Yamaha said they were providing interest around 13%, all cool. Came home, showed the calculation to Vishwas, the figure turns out to be 29.75 for the scheme i had selected. A big NO for bike and loan from Vishwas, then told me to visit Bank of India, with his reference the loan was actually cleared in one day, one afternoon to be precise. Even Yamaha people were shocked to know how fast the loan got cleared. All their yapping in drain about bike availability and loan options.

Vishwas's shouting and patience for my chicken brain to understand hats off.

Now paying it off by having 12.25% interest rate. That too with an option of paying it off early without any penalty. Also with an option of EMI which I was flexible with and not that the finance company would be with.

I also got support from him when collecting documents as he knows availability of legal documents in city on a 4th saturday of the month.

Checked with the bank last sat, all going fine, installment picked up on 15th of every month, this date was comfortable with me and i had decided it, not like busan at their pick up date. You see, you get everything sorted out, all you need is time and negotiations to be done and ofcourse friends like Vishwas.

[princesirohi]

thats wonderful & congrats for R15