Car Loan (SBI Loan - post 27 onwards)

hi

i am planning to buy a car next month. i am going to take loan for it. i want to understand what is meant by "margin amount" while taking a loan.

i have taken example of home loan: its similar for even car loan

Lenders usually give a loan only for upto a certain percentage (example: 80%) of the home/plot value. The remainder of the home/plot value (example: 20%) has to be paid by the buyer at the time of purchase and this is called Margin Amount. Margin is also referred to as down payment.  The Margin Amount required should be a factor in your choosing a particular loan - you have to show the lender the ability to pay the Margin Amount towards the home purchase at the time of the loan approval. The rest of the home purchase value will come from the lender in the form of the loan.

Same is the case in Car Loan.


Honesty is not a Spare Wheel that you pull out when in trouble. It's a Steering Wheel that keeps you on the right path throughout the life's journey.

well try for SBI car loans they finance the on road price upto 90% that means remaining 10% u have to pay but then its better that other banks in that

1.u dont have any foreclosure charges,pvt banks 6% 1st year,5%second yr,4 from third year.plus interest and daily charges of 50/- if u try to foreclose ur loan.

2.the govt bank though takes time, is much more reliable.

3.they finance the car on roadprices and not on exshowroom prices,so if u take a car on on road u will certainly have to pay lesser at the time of delivery ,else u gotta pay seperately for insurance and registration,apart from the remaining 10%which ur pvt bank will not cover.

4.but thgen again the more money u take the money has to be repaid with interest,it will have to be balance.

poor choices would be ICICI,HDFC..least concerned about customer ,once  the work is finished

 

Prepayment penalty (foreclosure charges) are also levied by SBI (@ 2%) but only if the loan is prepaid before completion of half the tenure of the loan - not otherwise.

 

All banks (including pvt. banks) generally finance on the total cost / on road price of the car.  Margin differs from bank to bank in the range of 10% to 20%.

 

ICICI is one of the leading pvt. banks known for car loan - experiences may, however, differ from person to person.

 

All in all, I too would endorse that SBI or nationalised banks should be preferred ahead of pvt. banks for availing of loans (car or any).

 

 

Honesty is not a Spare Wheel that you pull out when in trouble. It's a Steering Wheel that keeps you on the right path throughout the life's journey.

hi, One can even try IDBI for car loans. SBI is has a competitive rate of interset but the documentation work is like .............. if you are good at documentaion go for SBI or else try IDBI

i dnt think ki SBi etc govt banks should be approached...dey dnt take a little time ..imfact huge amount of time...jab tak woh laon pass karte hain tab tak pata chalta hai ki gaadi ki on road cost hi badh gayi hai...And Private Banks give upto 90% loan of ex showrum price....govt dont give 90 %....So 10%+road tax+insurance has to be beared through private banks...



YVES LAROCK drew me & da whole Pune in his Anthems.

Like I have said before, all banks extend loans on 'on-road price' of the car (registration/road tax, insurance, accessories etc. all included).

 

Yes, documentation is easier/faster in pvt. banks & therefore loans are sanctioned/disbursed faster.  But it has higher pre-payment penality & the like.

 

By the way, SBI is not a Govt/Nationalised bank - it's PSU (Public Sector Undertaking).

Honesty is not a Spare Wheel that you pull out when in trouble. It's a Steering Wheel that keeps you on the right path throughout the life's journey.

yeah yeah...pankaj..but da point is dat dey just dnt pass da loan in due time..the file just roams around just a lot..b4 coming to a halt...aadmi ke gadi ke sapne ko woh thoda aur delay kar dete hain...


YVES LAROCK drew me & da whole Pune in his Anthems.

Statistically speaking, pvt. banks have off-late reduced their car-loan portfolio due to no. of NPAs/Defaults increasing - they have adopted a go-slow approach. 

 

But yes, that's bank point of view - nothing to concern us if the loan is sanctioned/disbursed quickly & suits us

Honesty is not a Spare Wheel that you pull out when in trouble. It's a Steering Wheel that keeps you on the right path throughout the life's journey.