surbhi agrawal (student) (109 Points)
25 November 2016
Soumyajyoti Sarkar
(Student)
(36 Points)
Replied 25 November 2016
I'm an article, currently doing articleship in SBI Loan Processing Centre. I do regularly check on all types of loan processed, basic inputs of Processing Criteria. As per my knowledge :
You'll need to get Quotation Price certificate from the Car Dealer and submit it to the Bank along with Loan Application Form and KYC. Depending on your Income Sources, the following documents should be produced as below
Key Points :
1.Maximum 7 years for the repayment Period.
2.if you are doing business or professionally engaged, I advise to take loan in the name of business as you will get Tax benefit.
3. No processing fee for the Car Loan for SBI.
I assume you are purchasing a Car valued at 15 lakhs so you will get only 85% (i.e. 12.75 lakhs) as loan. Margin is 15%.
Your Car dealer will receive the amount and they will send Bank the Vehicle Delivery Letter. You also have to make an agreement with bank for Hypothecation of Car in case you'll fail to repay.
I advise to take loan in the name of a women as interest rate is 0.05% lower than Men. Currently interest rate for Women is 9.60% and 1-yr MCLR. That means after 1 year of loan sanction date any change in the Car loan interest rate by SBI will affect your existing interest rate. No Prepayment charges are there, if you wish to prepay your loan.
And
the last thing, Start calculating your EMI from the date the amount has been sanctioned and Check every month from your Bank account. Banks often forget to change interest rate (if sometimes gets reduced after MCLR fixed period), resulting to charge higher EMI for the Repayment period.
Thank you,
Soumyajyoti Sarkar
CAclubindia
