I would recommend you that do not take quotation for interest, rather take quotation for EMI since that will eliminate any risk of misunderstanding the product (falt/reducing rate of interest) and god knows what all hidden costs.
Most of the private banks do negotiate on Car Loan but PSU Banks don't. Check in market especially HDFC and ICICI (I found them to be quoting same as SBI when I took my Car Loan). I personally prefer to go for Private Banks due to less hassles at the time of closure of loan (I got NOC & Form 35 within 2 days of paying my last EMI - Loan was from ICICI), of course after lots of follow-ups but follow-ups do work there. However, if you want to gor for SBI loan, my recommendation would be to take through Dealer ONLY.
As Anshuman said, if you like the OD product, I think you have no other option but to go for SBI but remember that OD is grrrrreat for service man like me or self-employed/businessman!!!!
If I had been aware of this OD product or if OD product had been existing 7 yrs ago (when I took my car loan), I would have gone for that.
For ICICI, they quoted me 13% reducing through dealer, 11.5% reducing through bank directly, negotiated to get as 10.1% reducing when SBI was offerring 10% reducing. Since I don't like SBI, I went for ICICI. All these are 7 yrs old story. But I think nothing much has even changed today. BTW
: I am a service man and since there is no tax benefit on Car Loan for me, I am buying my second car (Tata MAnza) without loan. Think in this light also if you want EMI-free life.
Originally Posted by *SMK*
I have recently taken a loan from SBI. processing fee is 540rs. i was stunned hearing that (spent around 40k for home loan
). No hassles, sent all documentation via email, couple of calls, office visit for physical verification, done! very co-operative
dealer and bank will have a better understanding, my loan has got sanctioned already but i'm holding it until vehicle arrives.
in fact i chose the dealer based on the tie ups they had both for insurance and loan! better to avoid private craps. I've had enough with Lombard for insurance, hence i would always recommended to go for nationalized companies, loan or insurance.
It gives me a pleasant surprise to know that you liked SBI.
No offense meant. But couldn't resist to pour my frustration against SBI/PSU Insurers. Sorry!
I personally don't like SBI/PSU Insurers. I love ICICI and have ICICI Lombard Insurance as well. May be, because of my relationship manager (I'm ICICI Privilege Banking Customer), I always prefer ICICI brand since she takes care of all the work for me as long has the work is having a ICICI logo on it. On the other hand, all (not most of them) my friends/colleagues badmouth ICICI!
I would like to comment here that bank/insurance experience do differ from person to person and think about your own contacts which may work when you are in problem.
I have many bad experices with SBI as well as Mediclaim product of National Insurance. Though none of them are related to car, I didn't want my car to be tied up with any of them. Also, few months ago I got pissed off by BSNL broadband and currently using Airtel braodband which works for me much better. At least in India, I don't like any of the PSU products. Please do not open a discussion why I should like it or ethical values regarding this, but again my personal preference and won't be the same for all. Otherwise, no PSU company would have been surviving in the market.