SBI Advantage Car Loan with Overdraft Facility


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When I took Overdraft car loan, the manager informed me that I am first person to apply for loan with overdraft facility.
@ dharmesh

Did you need a Guarantor while applying for the loan? My bank gave a form which asking lots of documents of the Guarantor which is difficult to ask any one, almost same as mine. This is my only concern.
 
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@Soumen,

I took my loan from SBI last year. You can have S/B account in any branch(all over India) and Loan account in regional PB Branch. My S/B account is in Kolkata and Loan account in Bangalore.

Overdraft is not default for all loan accounts. You have to ask for it. It is available at all branches.

For me no Guarantor was required because of my work status. AFAIK it is also not mandatory, but is required only in certain cases.

Where do you stay in Kolkata? Visit the nearest Personal Banking Branch.

By the way which car are you buying? Major dealers have already tie up with SBI.
 
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@Soumen,

I took my loan from SBI last year. You can have S/B account in any branch(all over India) and Loan account in regional PB Branch. My S/B account is in Kolkata and Loan account in Bangalore.

Overdraft is not default for all loan accounts. You have to ask for it. It is available at all branches.

For me no Guarantor was required because of my work status. AFAIK it is also not mandatory, but is required only in certain cases.

Where do you stay in Kolkata? Visit the nearest Personal Banking Branch.

By the way which car are you buying? Major dealers have already tie up with SBI.
@ anshuman8

Thanks for your reply, I live in Barrackpore near Kolkata. I have here three SBI branches but everywhere feedback is same. I do business ( software development company ) and buying Hyundai Verna Fluidic SX Petrol. Also my loan requirement is 50%. I’ve taken VW Vento test drive beside Verna and the both showroom provides SBI loan, BUT not for Business persons only for salaried employee, I don’t know why. With the showroom, the process is hassle free. The VW sales guy said he will take care all of that. But as I’ve decided to go for Verna then no luck.

That’s why visited the local SBI branches, but their required papers works is a lot, mine is fine but I cant ask any Guarantor for all those. Even my company has good transaction with the Bank and I show them all. But these people even have no clear idea about their own systems. On the other side, I will get the loan from a Private bank over online in few hours with no Guarantor, almost at same % rate. But there have no Overdraft facility and 5% pre-payment charges however Zero processing fees + 4k bonus from bankbazar.com. They have already approved it within an hour and asking for papers. [:D]
 
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@ anshuman8

Thanks for your reply, I live in Barrackpore near Kolkata. I have here three SBI branches but everywhere feedback is same. I do business ( software development company ) and buying Hyundai Verna Fluidic SX Petrol. Also my loan requirement is 50%. I’ve taken VW Vento test drive beside Verna and the both showroom provides SBI loan, BUT not for Business persons only for salaried employee, I don’t know why. With the showroom, the process is hassle free. The VW sales guy said he will take care all of that. But as I’ve decided to go for Verna then no luck.

That’s why visited the local SBI branches, but their required papers works is a lot, mine is fine but I cant ask any Guarantor for all those. Even my company has good transaction with the Bank and I show them all. But these people even have no clear idea about their own systems. On the other side, I will get the loan from a Private bank over online in few hours with no Guarantor, almost at same % rate. But there have no Overdraft facility and 5% pre-payment charges however Zero processing fees + 4k bonus from bankbazar.com. They have already approved it within an hour and asking for papers. [:D]
Ok, might be you are not salaried that is why SBI is asking guarantor. Did you try with any other PSU banks? They also have no foreclosure charges, e.g. BOB, UBI etc. Even HDFC is giving same now.
Please check the nearest PBB branch from this list and visit same. Saltlake near tank 13 should be nearest.
https://www.sbi.co.in/corporate/branchlocator.htm
All the best
 
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Ok, might be you are not salaried that is why SBI is asking guarantor. Did you try with any other PSU banks? They also have no foreclosure charges, e.g. BOB, UBI etc. Even HDFC is giving same now.
Please check the nearest PBB branch from this list and visit same. Saltlake near tank 13 should be nearest.
https://www.sbi.co.in/corporate/branchlocator.htm
All the best
Yes I think that too. And I really have less time for these, but I checked HDFC online and their rates is high. I will check with other PSU banks. But like I said no other banks provides overdraft facility over car loan AFAIK.
 
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Hi Dharmesh, very informative thread this one.

I would be buying the Storme (already booked it) & almost finalized my choice of bank for loan as Axis bank as I have a NRI account with them, now reading your thread I am tempted towards going for SBI with OD facility.

As of now the quotes are:

Axis bank: 10.5% (was 11% but they gave me 0.5 discount as I am their customer), some 3.5K processing fee & some amount on pre-payment charges.
Best part: Less amount of paper work.

SBI: 10.45% (normal loan, wasn't aware of the OD one), 0.5 % processing fee( which I will negotiate to as low as possible) & 0 prepayment charges.

Now, as you have said in your first post:

This loan is for those who have a good amount left after giving downpayment.

My Scenerio:

I won't be having anything after the downpayment as all the excess will be going for small upgrades. But as I get about 1 lakh a month in salary I can easily save 50K a month after paying installments.

So, do you advice me to go for the SBI Advantage car loan, as I will have say 40-50 K to put in to the OD account each month, will it be feasible for me??

Thanks in advance buddy. :thumbup:
 
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See it is individual's choice whether they want to go with OD facility or not.

I would suggest Yes, that way you can maintain your liquidity plus lower down your EMI drastically. But please do keep in mind, do not deposit money as same as your principal amount else, your loan gets closed as you have prepaid everything.
 
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Dharmesh, thanks for sharing this useful information. I knew about the SBI car loan thingy but was not aware about the same in car loan.
 
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Dharmesh bhai,

I have given all the required documents to the manager and asked him to give me Advantage car loan, he happily marked it on the form but asked why I want it, I explained him all I came to know from this thread. But he disagreed saying yes you can debit/credit from your OD account but the EMI will remain the same, I asked him how is that possible.

He explained that the EMI will remain the same but If I have deposited some amount in the OD account say a sum which is equal to 5 EMI's then I don't need to give EMI's for next 5 months. Now how is this feasible if his words are true.

Kindly help, this is really getting confusing.
 
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I think you need to just confuse the manager equally. Ask him a simple question "If I pay you equal installment till I complete my loan amount, how am I getting benefit from OD account the amount of which I would be changing now and then"

Have 2-3 very simple example ready for him to explain. Take some online printed document from SBI site as I am sure he will not agree easily to such things.
 
Thread Starter #42
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As far as I know, he is wrong. This was explained to me by my Father in law, who is AGM in SBI. But still I will confirm this once again.

Know what these people them selves don't know much, because not many people opt for this loan and also loan manager knows a little about this.
 

vijay

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Dharmesh bhai,

I have given all the required documents to the manager and asked him to give me Advantage car loan, he happily marked it on the form but asked why I want it, I explained him all I came to know from this thread. But he disagreed saying yes you can debit/credit from your OD account but the EMI will remain the same, I asked him how is that possible.

He explained that the EMI will remain the same but If I have deposited some amount in the OD account say a sum which is equal to 5 EMI's then I don't need to give EMI's for next 5 months. Now how is this feasible if his words are true.

Kindly help, this is really getting confusing.
This remark that he said is for the regular car loan account where the amount say equal to your 4 or 5 installments would be credited but thats not how it is applicable on an OD account, whats the use of an over draft facility then.
Dharmesh, awesome thread, dont know how did i missed this.Thanks mate.[clap]
 
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This remark that he said is for the regular car loan account where the amount say equal to your 4 or 5 installments would be credited but thats not how it is applicable on an OD account, whats the use of an over draft facility then.
Dharmesh, awesome thread, dont know how did i missed this.Thanks mate.[clap]
Yes you are correct. What the manager had said applies to normal car loans in case of part pre-payment. Not all branches are aware of this facility.
 
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I have had enough of SBI [anger] now that all the documents have been submitted they sent me to the higher authorities to confirm that all docs are ok and the check how much time will it take to process. But now they have added another clause that I should have an NRI account with them and If I don't I should open an NRI account with them with a balance of USD 5000, insane are these guys.

I really hate them for wasting my 4 days if they had say this why didn't they tell me this on the first day.

Can anyone confirm whether this is correct if it is then I might have to go for a Pvt bank, please advice which one is best.

Thanks.
 
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