SBI CAR LOAN. Review on Tips on Auto Loans

State Bank of India, Indian Banking behemoth, Yes they are changing. Let me tell you my experience with them when I have opted them for an auto loan.

Day 1

I have submitted all my documents to Prerana Motors. They have dedicated SBI personnel, randomly went through all my documents and forwarded it to Marketting department.

Day 7

I have submitted my papers on a Wednesday(day 1). I had no updates from day through day 7 as it was in process(State Bank these days have huge pile of auto loan applications). The next Tuesday(day 7), the SBI verification team has dropped into my house. They were really professional to give a call and fix up the appointment. Usually I have seen that these CC verification folks rather barge into our house and fire the questions. I have my parents staying with me and they kind might get little embarassed with such kind of treatments. But these people were different. They were very punctual. The meeting was scheduled to be at 6:00 initially, but I had to call them up and differ the timings to 6:30. All thanks to Bangalore traffic, I could not help it in anyway.

As they reached the nearest landmark, they have given me a buzz, I promptly went and picked them up. Once we reached home, we started discussing business. As usual, things started in a light note. I have served them with a cup of coffee. They were talking to me as if they have known me for years. we spoke everything variety of topic right from recession, drop in sales, Possible PLR cuts etc. These guys were really smart to fix up the questions in between to get the answers out of me. It is a common human phsychology to spill the beans when something comes in the most unexpected manner. But for there was nothing to hide. But I enjoyed their strategy.:-)

They have requested me to add in few details that they were looking for in the application like my networth, invest plans and repayment capabilities and other source income etc. I had very clear answers for every question that they asked.

The wait was on.:-)

Day 9

I got a call from my auto showroom, that my file was moved from marketing to operations and it will get going in another day.

Day 13

I was updated that the file number is generated and I need to visit the branch with PDCs(for 1st one year at least) and sign the agreement. SBI guy was pushing it hard so that I would get my DD in a day.

Conclusion

As I have penned down my experience with HDFC the other day. I would tell you, SBI took just a week more than HDFC. Please note that SBI was giving it at 11%(After bargaining the PLR cut of 25 basis points). More over they wanted me to take the Bajaj auto insurance from them+ Bajaj alliance Loan insurance also. I have tuned them down. On the other hand SBI was totally hassle free except the fact that they were not ready for any kind of standing instruction(SI) or Electronic Clearing System(ECS). I had to give them the PDCs. But if you want, you may open a SBI account and bank through that. I did not find it viable as opening an account would be an additional overhead interms of processing time for me. So I was more than happy to give the PDCs to SBI. But one thing I can assure you that, I might open an SBI account soon and would bank through that reguarly so that it would be a fast Loan processing for me in furture if I would like to take one. Even otherwise, your deposit would with the safe hands:-)

Some calculations

SBI

Loan Amount 450000

Interest 10%

Tenure 5 Years

EMI 9, 561.17

HDFC(Here is the link for my HDFC review. https://mouthshut.com/review/Advice_on_Auto_Loans-167789-1.html)

Loan Amount 450000

Interest 11.25%

Tenure 5 Years

EMI 9, 840.29

Bajaj Alliance Loan Insurance 6000/60 i.e. 100/month

Total EMI 9940.29

Money that you loose/ month is 9940-9561=379

Moeny that you loose over 5 years is 379* 60= 22740

I guess 22k is a huge amount for an Indian Middle class guy. Note that, you can buy best in class ICE(In Car Entertainment) for that amount! So guys, please figure out the loop holes before you sign the papers.