Bank Loan and deals

[lessgravity]

I have booked a Hyosung GT650R in Bangalore. The scheme given to me is as follows -
on road 595155
loan amount 500000
flat rate 8.60%
tenure 48
Adv Emi 1
Funding 85.20%
EMI amt 14000
Down Pymt 107599

I was reading some of the two wheeler loan pages of bank websites. They all shown maximum loan amount around 50000 ! This bike needs 10 times that. Not really sure who else to apply with.

Interest I pay Tata Capital with current scheme will be 1,72,000 for the 5 lakh loan for 4 years at 8.6% flat rate.
Is this ok ? im clueless at financial stuff

[trustvishwas]

I have booked a Hyosung GT650R in Bangalore. The scheme given to me is as follows -
on road 595155
loan amount 500000
flat rate 8.60%
tenure 48
Adv Emi 1
Funding 85.20%
EMI amt 14000
Down Pymt 107599

I was reading some of the two wheeler loan pages of bank websites. They all shown maximum loan amount around 50000 ! This bike needs 10 times that. Not really sure who else to apply with.

Interest I pay Tata Capital with current scheme will be 1,72,000 for the 5 lakh loan for 4 years at 8.6% flat rate.
Is this ok ? im clueless at financial stuff

Bank of India does not have a limit on value of loan. Here is their website link - BOI Star Vehicle Loan
Couple of my friends have opted for a loan for Kawasaki Ninja so can confidently say that they process larger amount of loan than 50k.

1. Advance EMI actually means lesser loan amount. Rs.5 lakh loan less 1 EMI of 14k = Actual Loan amount of Rs.4.86 Lakh
2. For interest of 1.72 Lakh, applicable rate of interest works out to 15.75%.
3. Bank of India normally offers interest rate between 12 - 12.5%. For interest 12.5%, the total interest payment works out to 1.34 Lakh.

It might be a good idea to visit any nationalised bank to check on their procedure and applicable interest rates.

Note : I am not employed or paid by Bank of India. I do not have any relationship with BOI except one loan account.

[dhiraj]

Even i am struggling with settlement of my personal loan and i am 100% agree with vishwas regarding the Personal loan being the most expensive loan in the market after Credit Card loans....

Now what i am thinking is to take one personal loan (ofcourse if i get loan on lower interest than existing) and pay my existing personal loan...is it a good idea?

@Vishwas :- Do you have any info on personal loan from Bank of India?

[trustvishwas]

@Vishwas :- Do you have any info on personal loan from Bank of India?

I don't know anything other than this - BOI Star Personal Loan

[dhiraj]

I don't know anything other than this - BOI Star Personal Loan

okies .. will visit the nearest branch and let see what they offer ..

Hey Vishwas i am really thankful to you for sharing the excel sheet. today i came to known that on one of my personal loan i am paying interest of whopping 34%, i was totally unaware of it previously, i inserted all the details in the excel sheet you have provided and found that rate of interest what was told to me at the time of approval is half the ROI they are charging now..

Instantly i went on bankbazar.com and saw some personal loan offers, received call from HDFC, i told them to shift my loan from fullerton to hdfc, they offered me 18.25%.

Will visit other banks for the same tomorrow.

[princesirohi]

@ vishwas: which excel sheet, plz share with us also, atleast i am as troubled by loans as anyone.also, if i plan to purchase a car and a bike at the same time, typically a CBR 250 and an ALTO K10, is there any such loan which can cover both vehicles in one single loan, instead of taking two separate loans.

[trustvishwas]

@ vishwas: which excel sheet, plz share with us also, atleast i am as troubled by loans as anyone.

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.

You can find the excel file in my above post.

also, if i plan to purchase a car and a bike at the same time, typically a CBR 250 and an ALTO K10, is there any such loan which can cover both vehicles in one single loan, instead of taking two separate loans.

While applying for a loan, you can submit quotes for both the vehicles at one time and get it sanctioned as one loan. There is no rule of 'One vehicle - One loan'.

Instantly i went on bankbazar.com and saw some personal loan offers, received call from HDFC, i told them to shift my loan from fullerton to hdfc, they offered me 18.25%.

Will visit other banks for the same tomorrow.

Again check the offered interest rate with actual EMI. You may be surprised to find that those two won't match. General practice is to quote an interest rate and then charge more interest on loan amount. Customer never bothers to cross verify this.

Be extremely weary of all financial institutions. You may relax a bit with nationalised banks though.

[adhirajb]

Hi vishwas, I just shifted to pune and need a 2-wheeler to travel, have narrowed down to r15v2. I have been working for the last 6 months in a reputed IT firm so finance is the only option for me. Now I have 2 queries :
1)going by this thread I thought I should contact BOI for loan as over here BOI seems to be tried and tested. On calling them up came to know they disburse loans only after seeing last 3 years of IT return. For me 3 years of IT return is a long far fetched time. Can you please let me know what to do in this situation.
2) What is the minimum downpayment that I can avail coz even paying a slight higher emi s isnt an issue, but giving a sum at one go is , at this point of time for me.

Thanks
Adhiraj

[Rahul.Gvli]

Vishwas sir, have you ever have any personal experience with any perticular BOI branch? If yes, which one and who is the contact person there?

[dhiraj]

Hi Vishwas,

I am still confuse regarding Fixed Rate of interest and reducing rate of interest. Are the EMI for both are same for a loan amount. and how they are calculated. Suppose if i have a loan of Rs. 2 lakh at the fixed rate of interest of 18% for 4 years then how it is calculated and how much the reducing rate of interest it would be for the same?

[trustvishwas]

Hi vishwas, I just shifted to pune and need a 2-wheeler to travel, have narrowed down to r15v2. I have been working for the last 6 months in a reputed IT firm so finance is the only option for me. Now I have 2 queries :
1)going by this thread I thought I should contact BOI for loan as over here BOI seems to be tried and tested. On calling them up came to know they disburse loans only after seeing last 3 years of IT return. For me 3 years of IT return is a long far fetched time. Can you please let me know what to do in this situation.
2) What is the minimum downpayment that I can avail coz even paying a slight higher emi s isnt an issue, but giving a sum at one go is , at this point of time for me.

Thanks
Adhiraj

I had replied to you on PM. Did it help?

Vishwas sir, have you ever have any personal experience with any perticular BOI branch? If yes, which one and who is the contact person there?

Bank of India, Fergusson College Road Branch, Pune. Contact person Mrs. Pandit.

Hi Vishwas,

I am still confuse regarding Fixed Rate of interest and reducing rate of interest. Are the EMI for both are same for a loan amount. and how they are calculated. Suppose if i have a loan of Rs. 2 lakh at the fixed rate of interest of 18% for 4 years then how it is calculated and how much the reducing rate of interest it would be for the same?

Fixed rate of interest means interest is charged on the total loan amount without reducing the repayments you have made till date. This rate is usually quoted because it can be shown as a lower figure.

Reducing rate of interest means interest is charged only on the outstanding (still to be paid back) loan amount.

eg. A loan of 2 lakh at reducing rate of interest of 18% for 4 yeas would attract an EMI of Rs.5,875/-.
A loan of 2 lakh at fixed rate of interest of 18% for 4 yeas would attract an approx. EMI of Rs.7,166/-.
EMI of Rs.7,166/- means an actual reducing rate of interest at 29.50%.

[Rahul.Gvli]

Thanks sire. was waiting for this info.

[trustvishwas]

Thanks sire. was waiting for this info.

Welcome.

I don't check this thread often. So if someone is in a hurry for answer, please PM me.

[trustvishwas]

Update :

Today visited Bank of India, Fergusson College Road branch for obtaining a 2 wheeler loan for a friend.

It seems that this branch has currently stopped 2 wheeler loans because of heavy rush of other high value loan processing.

This is not a blanket ban by Bank of India on 2 wheeler loans but a branch's inability to process more loans.

I am not aware the duration till which they would keep this ban in effect.

[Rahul.Gvli]

That's a bad news for me. Hope they will be back on track after Diwali or at the most till new year...