Car Loan (SBI Loan - post 27 onwards)

If you wish to deposit extra amount (lump sum) as & when it is convenient to you, you can deposit the same in the loan a/c just by crediting the account (like you do in other a/cs).  If you wish to re-pay extra amount on regular/monthly basis, you can request the bank to increase the amount of EMI.

You will benefit on interest front & your loan will be liquidated before schedule (84 months).  Please note that if the loan is liquidated before half the tenure (42 months in your case), pre-payment penalty will be levied on the amount pre-paid.

@Pankaj Prasad

I am writing in this forum after a long time.

I have an query regarding my car loan interest amount.

My car loan rate of interest is 11.25

Balance amount on 21st Jan-2010 is 2,55463

Interest should be 255463*11.25/100/12=2394.96 ,

But in my a/c statement it is shown as 2612/-

Can you please help me , how it is calculated.

Txn Date/Value Date/       Description /                           Debit /     Credit/         Balance

15-Feb-10/15-Feb-10/O.S. DEPOSIT TRAN-/                                   11,192.00 -2,16,883.00

3-Feb-10/3-Feb-10/DEPOSIT TRANSFER-TRANSFER FROM/                30,000.00 -2,28,075.00

31-Jan-10/31-Jan-10/            INTEREST-/                        2,612.00                 -2,58,075.00

21-Jan-10/21-Jan-10/DEPOSIT TRANSFER-TRANSFER FROM /            20,000.00 -2,55,463.00

15-Jan-10/15-Jan-10/O.S. DEPOSIT TRAN-                                     11,192.00 -2,75,463.00

Interest, though serviced/debited monthly, is calculated based on daily product/outstanding.  The O/S as at the end of the month may not be the same throughout the month.  It would obviously be more prior to credit of EMI (or any repayment).  You can ask the branch for the entire month's statement & check.  Though the possibility of error is very remote (system is fully computerised), it has to be rectified, if any.

prepayment penalty can be waived off in case of SBI, based on the discretion of Branch Manager.

That's in case of 'value of connection' (bank's income from your other dealings/transactions). In absence thereof, waiver is normally not granted.

Branch Manager does not have the discretion.  He can only recommend for waiver to the controlling/sanctioning authority.

Hi,

I have recently taken Car Loan from SBI for 5 years and the document says there will be no pre-payment penalty. The Branch Manager asked me to open a Savings Account as well. However, I am finding it hard to get any information on this account. My issues are:

• There is no SMS alert or email alert or any intimation by the bank whenever there is a transaction on the car loan. For Example, my first EMI was debited but I did not get any intimation and today my Father in Law deposited 50K into this Car Loan Account but again there is no intimation by the bank. I have a personal loan with HDFC and everytime there is a transaction, I get a SMS or an email.
• I already had a PPF account with SBI in another branch and the Car Loan is at a different branch but the Branch Manager opened it under the same C.I.F. so they are all linked it seems (Car Loan, Savings and PPF). However, they are confusing me by saying the Car Loan account will be at this branch but they will transfer the Savings account to the other branch where the PPF account is maintained.
• In order to get a Internet banking password, I need to go and apply at the branch where the Savings account and PPf account are maintained. They have assured me that once I login, I should be able to view all 3 accounts.
• I have not received the passbook, chequebook, ATM card etc. Will this come by post?
• How do they apply the lumpsum payments we make to the Car loan? Does the EMi get reduced or the tenure gets reduced?

Please help me understand these basic things as I am very unhappy with SBI. I would take the next car loan from HDFC only.

SBI Car Loans is less aggressive these days

Best way is go online with car loan with HDFC Bank, ICICI Bank , Axis Bank Site. The rates are competitive with a clear and fast way to get a car loan