[xBhp Universal Thread]: Bank Loan and deals

[jkdas]

Hope this helps for those who are looking for loans.

The following is what I was quoted by a TVS dealer at Trivandrum.

Bike - Apache RTR 180 :77,551 OTR

Loan- TVS Credit ( dealer has a rep there, they also have HDFC guy there)

Loan details

• Initial payment : 45,056
• EMI 1954 x 23 months
• but have to take insurance from them for the second year too

Bike - Apache RTR 180 ABS :87802 OTR


Loan details

• Initial payment : 45,420
• EMI 2527 x 23 months
• but have to take insurance from them for the second year too
• You pay an extra of 15,730 Rs for this deal

Bike - Apache RTR 180 ABS :87802 OTR


Loan details

• Initial payment : 45,237
• EMI 3299 x 17 months
• but have to take insurance from them for the second year too
• You pay an extra of 13518 Rs for this deal

[sunilg]

Universal Topic approved.

[trustvishwas]

Bike - Apache RTR 180 :77,551 OTR

Loan- TVS Credit ( dealer has a rep there, they also have HDFC guy there)

Loan details

1.Initial payment : 45,056
2.EMI 1954 x 23 months
3.but have to take insurance from them for the second year too

For the loan of Rs.32,495, looking at the EMI, the interest rate works out to 35% pa

Bike - Apache RTR 180 ABS :87802 OTR


Loan details

1.Initial payment : 45,420
2.EMI 2527 x 23 months
3.but have to take insurance from them for the second year too
4.You pay an extra of 15,730 Rs for this deal

For the loan of Rs.42,382, looking at the EMI, the interest rate works out to 33.5% pa

Bike - Apache RTR 180 ABS :87802 OTR


Loan details

1.Initial payment : 45,237
2.EMI 3299 x 17 months
3.but have to take insurance from them for the second year too
4.You pay an extra of 13518 Rs for this deal

For the loan of Rs.42,565, looking at the EMI, the interest rate works out to 39% pa

Are you sure, you want to opt for such high interest loan?

If you opt for a loan from any nationalised bank, you can get it around 14 - 14.5% pa and the EMI in above cases would be

1 Rs.1627
2 Rs.2122
3 Rs.2784

Similar would be the case for insurance. You can easily get similar policy cheaper by at least 30% (which is dealer margin) if you go directly to insurance company.

[vibbs]

I am facing a similar dilemma. A bajaj showroom here is quoting me 2800 EMI for 24 months fora loan amount of 51000. :O The agent says the interest rate is 12.5 % whereas a back of the envelope calculation tells me it's 30 %. At 12.5% I should nt be paying more than 2400 on that loan amount. :O how on earth do these guys calculate EMI?

[antz.bin]

I am facing a similar dilemma. A bajaj showroom here is quoting me 2800 EMI for 24 months fora loan amount of 51000. :O The agent says the interest rate is 12.5 % whereas a back of the envelope calculation tells me it's 30 %. At 12.5% I should nt be paying more than 2400 on that loan amount. :O how on earth do these guys calculate EMI?

The point you missed in your 'back of the envelope' calculations is that the interest is 12.5% per annum. You have added it only once. Since the period is 2 years, the interest should be added twice.

So, EMI = [(51000 + 12.5%) + 12.5%]/24 = Rs. 2689.5/month.

If you realistically want a much lower EMI than this, I would suggest you to approach a Nationalized bank for the loan. Instead of 12.5% simple interest, even if they give you a loan @18.5% reducing (SBI 2-wheeler loan interest), you will land a much lower EMI of Rs.2552/month.

[vibbs]

Simple Interest? Now I got it.My back of the envelope calculations were not for simple interest, I was calculating at reducing interest. I thought reducing interest was the norm when it comes to loans. My ears lit up wen he said 12.5% coz I knew banks give at 18%. Anyways that kind of explains it. Thanks I feel it makes more sense to pay upfront..

[aargee]

SThanks I feel it makes more sense to pay upfront..

It always makes sense to buy anything with cash rather than taking loan; if loaning out, ensure to pay the last drop of your saving as much as possible thus trying to loan out as much less money as possible.

[princesirohi]

^^ very true, always try to purchase things on cash. loans should be last option.

we can also use this thread to provide information about various loan providers in our cities.

recently i found that interest rate on yamaha R15 is the lowest of all bikes available i.e. at 11%. the problem is the financing company is providing loans only for yamaha bikes.

second cheapest is HDFC bank, but it requires a really clean credit history.

and for ppl like me, Bajaj Finance is ready to help opt with least possible hurdles and least possible requirements.

[trustvishwas]

recently i found that interest rate on yamaha R15 is the lowest of all bikes available i.e. at 11%. the problem is the financing company is providing loans only for yamaha bikes.

I had the misfortune of actually calculating the Interest & EMI for a R15 offered by Bussan Auto Finance. The interest rate informed to my friend was 13%.

However, after going in depth, found out a scary fact that the actual interest rates charged varied from 29.75% to 30.50%.

eg. for a loan amount (vehicle cost less down payment)of Rs.81,875, the quoted EMI was Rs.5696.. . . . Interest rate 29.75%
for a loan amount (vehicle cost less down payment)of Rs.62,575 the quoted EMI was Rs.4375.. . . . Interest rate 30.50%

This is pure and simple cheating. The rates quoted to you guys are flat rates and not reducing balance rates.

second cheapest is HDFC bank, but it requires a really clean credit history.

Not really. Bank of India offers 2 wheeler loans at 12.25% on daily reducing balance. Bank of Baroda offers at 14.50%

If we take a similar loan figure as above of Rs.81,875, the Bank of India EMI works out to Rs.4071 i.e. a saving of Rs.1626 every month.

My friend was able to save more than 10,000 in interest payment.

He was not a customer of Bank of India. He just walked into the branch and his loan was sanctioned as well as disbursed in 3 days.

ps. I am neither the owner or sales person of Bank of India.

[Doga]

A personal loan is much cheaper and the disbursal process is comparatively smoother and more prompt.
Besides, no hassles of dehypothecating the bike later.
Only problem is you'll have to take a minimum loan of 50K in most personal loan products.
For example, a personal loan from HDFC bank can be taken at around 15% RR and even lower if they have a particular corporate loan product for the company you work for. This works out to be around 8% flat interest per annum

[trustvishwas]

A personal loan is much cheaper and the disbursal process is comparatively smoother and more prompt.
Besides, no hassles of dehypothecating the bike later.
Only problem is you'll have to take a minimum loan of 50K in most personal loan products.
For example, a personal loan from HDFC bank can be taken at around 15% RR and even lower if they have a particular corporate loan product for the company you work for. This works out to be around 8% flat interest per annum

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.

[princesirohi]

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.

wow, buddy, never knew this, that you are associated wil loan industry.

help me out. i had an accident in 2007 when i was bed-ridden for 5 months. i joined office after 6 months and since i didn't had any mediclaim policy all the expenses (approx. 4 lakhs) was from my pocket. so i bike EMI bounced for 7-8 months during that period. later i cleared all the loan and got the NOC. this was with bajaj finance. this is reflected in CIBIL report.

due to this i am not getting a bike loan and my loan application got rejected (for CBR) twice, once with HDFC and another by family credit.

is there anything i can do?

[trustvishwas]

wow, buddy, never knew this, that you are associated wil loan industry.

help me out. i had an accident in 2007 when i was bed-ridden for 5 months. i joined office after 6 months and since i didn't had any mediclaim policy all the expenses (approx. 4 lakhs) was from my pocket. so i bike EMI bounced for 7-8 months during that period. later i cleared all the loan and got the NOC. this was with bajaj finance. this is reflected in CIBIL report.

due to this i am not getting a bike loan and my loan application got rejected (for CBR) twice, once with HDFC and another by family credit.

is there anything i can do?

CIBIL only gives a scoring for each individual. You can ask for your CIBIL score directly from them. If you have cleared the payment, you should submit all relevant documents to them so that, after verification, they would improve your rating.

Also each bank / finance institute has a different CIBIL score as minimum requirement. AFAIK, majority co-operative banks and few nationalised banks do not refer to CIBIL score at all.

Another alternative is to rope in another earning member of your family and apply in joint name.

Try with Bank of India first. I have found them to be fantastic in service and most co-operative. Be clear about your CIBIL status before submitting application so they can guide you in proper direction for filling up the form.

[princesirohi]

CIBIL only gives a scoring for each individual. You can ask for your CIBIL score directly from them. If you have cleared the payment, you should submit all relevant documents to them so that, after verification, they would improve your rating.

CIBIL not only gives a score, but it gives a detailed credit history also. i have paid the fees and downloaded my CIBIL report. the problem is not in score. score is good. the problem is in credit history which shows DPD (days past due) because of bounced emi's. it clearly shows that loan is paid in full but still shows that emi's have bouced for so many months.

Also each bank / finance institute has a different CIBIL score as minimum requirement. AFAIK, majority co-operative banks and few nationalised banks do not refer to CIBIL score at all.

as on date i think majority of banks and almost all nationized banks see credit history. and they not only see CIBIL score but see detailed credit history. and that is where the problem lies, otherwise my score is good. only co-operative banks do not check credit history, but they do not give a loan of more than a lakh for two-wheelers.

Another alternative is to rope in another earning member of your family and apply in joint name.

this is the only remaining option.

Try with Bank of India first. I have found them to be fantastic in service and most co-operative. Be clear about your CIBIL status before submitting application so they can guide you in proper direction for filling up the form.

will try bank of india too...

[trustvishwas]

CIBIL not only gives a score, but it gives a detailed credit history also. i have paid the fees and downloaded my CIBIL report. the problem is not in score. score is good. the problem is in credit history which shows DPD (days past due) because of bounced emi's. it clearly shows that loan is paid in full but still shows that emi's have bouced for so many months.

I know that CIBIL gives a detailed credit history but AFAIK, the score is the first thing that is checked. Also if it is more than 2 years since the EMIs bounced and all other instalments since then are paid on time, you should not have any issue.