Difference in Loan Application Procedures of Banks

[Knightrider]

Hi all,

I am in lookout for loan for new car. I registered through bankbazaar.com & got responses from few banks.

I got a call from HDFC bank & they asked me for all the documents. I was surprised as I thought I would get a final quote & if I wish to go for loan from that bank, only then would I need to give the documents. But the representative said, that final rate & charges will depend on my documents & record.
Anyways, I gave the documents to the HDFC representative. They approved the loan in 3 days & are now asking for the disbursement. They did not take any processing fee so far.


Meanwhile, I also applied to SBI. Even they are asking for all the documents beforehand & also demanding processing fees. I haven't even finalized that I would be going for SBI. But they said that they won't proceed unless I give them the processing fees.


Is this the general procedure followed, of giving documents first & then get the final quote from banks? Any idea why such differences in procedures?

 

[TSIVipul]

See buddy any bank before giving you a loan first of all analyse your income status,your job status and what can be your further growth as well as for how many years you can earn.In other words most of them take it this way:-

If you are 40 and your monthly salary is 50k.
Now you want a personal loan of 20 lac.
Bank will first of all analyse if you have any other loan,if no then okay and if yes then they will deduce its installment from your monthly salary for the term of loan.
Example:You pay 15k as home loan installment and its term is for next three years remaining.Then they will consider your salary as 35k for next three years.

Now they will make analysis of other loans like education loans of your children in which you are guaranter etc etc and again make slight deductions.

They will also ask you to submit a copy of your salary slip(latest) and the form 16 of all the tax-paying members if the family and hence will calculate and conclude that how much maximum amount will be safe for you as well as them to be given to you.

In other words,when they give you a loan at 40,they will consider you working till 60,hence you can take it for maximum 20 years and minimum 6 months(before 6 months you can't pay it back).Now they will decide if it will be safe to give you a loan of 20 lac or not and you have enough assets or job security as a guarantee that you can pay it back.


About banks,I'd say that if you want the loan to be completely hassle free then take slightly extra pain and go for SBI.They will surely get a pair of your shoes broken but then they will let you live with ease even if you are unable to pay an installment or two in future.
And at last they have least number of "CONDITION APPLY"(*) stars too and the complete deal is transparent.
All the private banks give loan with smile and when you pay it back then you get many surprises,so be careful with HDFC.

Have a look at this thread:-http://www.theautomotiveindia.com/forums/loan-insurance-rto/7299-emi-problems-not-received-my-salary.html

 

[Knightrider]

Thanks TSIVipul for a detail reply.

It seems I will have to give processing fee upfront to SBI to apply. Since, I will mostly be going for SBI for loan, it would not be a loss.

 

[TSIVipul]

Taking loan from SBI will help you take further loans too in future like home loan,education loan etc.

Actually they process loan by using some matrix style which have some columns like:-
Salary,Company,Job profile,Age,Other loans taken,Monthly transactions etc etc.
With some pre defined points for each of your details.Now they fill the matrix as per the points and sum up the columns.
If the sum goes above 60 points then you get the loan else you won't.

 

[paul]

Friend, go for SBI. Its their standard procedure to collect processing fees upfront, and if for some reason they decline the loan, they refund u back the processing fees. The loan itself is now hasselfree and takes usually 4-5 days to process and disburse. I myself have applied and have been sanctioned a car loan in 4 days flat. of course u need to give them all the required documents. No bank will sanction u a loan without taking documents. AND all their terms and conditions are transparent. Unlike private banks, U will not feel cheated after u avail the loan from SBI or for that matter any other PSU banks...trust me on this

 

[dharmesh]

Go for SBI apart from the little bit of initial hassle, its all smooth. I have takne my car loan from SBI. I have taken SBI Over Draft car loan which different from normal car loan. And if you ask they will give you online access to the loan account from there you can check your balance and stuffs.

 

[Knightrider]

Thanks paul & dharmesh.
HDFC has approved my car loan now, but I will wait for SBI loan approval. I have given the documents & processing fee & hopefully will get the loan approved from SBI.

 

[threeace777]

@Dharmesh

brother do tell me how is SBI Over Draft car loan different from normal car loan ?

 

[dharmesh]

@Dharmesh

brother do tell me how is SBI Over Draft car loan different from normal car loan ?

Hey, the explaination for the same is posted here