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#1
As surfing through TAI, I see many people wants to buy a car and most of them go for car loan. A question arises is which bank will provide me better service and at lower rates. So here is an attempt to explain the advantages of SBI car loan with Over Draft facility over nor mal car loan.
Whenever a person decides to buy a vehicle, everyone have 2 options.
Now what if you want benefits of both the options. How?
If you decide pay full amount by cash/cheque, you pay Rs.7,50,000. This will make your pocket lighter by Rs.7,50,000 in one go. :-)
Here comes the SBI Advantage car loan with over draft facility. Consider a example you buy PUNTO worth Rs. 7,50,000. You pay Rs.2,50,000 as down payment and go for loan for Rs.5,00,000 for 7 years. For interest rate 11.00% you will pay EMI of Rs.8483 monthly.
Now from some where you won lottery of Rs.5,00,000 and you decided to pay back your loan amount. You simply go to bank and pay rest of remaining loan and done. Car loan is over, but you left with nothing of the money won. Sad isn't it!!! Plus penalty of pre payment if there is any.
Now here is the catch. Instead of normal car loan you go for SBI car loan with over draft facility.
The interest rate for overdraft loan would be 0.25% more. so the interest rate here would be 11.25%.
Monthly EMI would be Rs.8547, But what we will get by paying more?
In this case, If you have access money, you can do pre payment of the loan, but the pre paid loan principal amount you can withdraw and use as if it was a normal account.
Example: Suppose loan is for Rs.5,00,000, You take loan using SBI Over draft facility. After few months you pre pay 4,00,000. So what you pay now is interest only for Rs. 1,00,000. But Rs.4,00,000 you pre paid can be withdrawn and use if required. So here you maintain your liquidity plus you pay less EMI. So instead of keeping money in your savings account, you can keep money in your over draft account, withdraw as per your will and use it.
Hope this helps. If you require more information, do let me know.
This type of loan is only useful if you have some money left after paying down payment.
Whenever a person decides to buy a vehicle, everyone have 2 options.
- Pay full vehicle amount by cash/cheque and vehicle is yours.
- Pay down payment and take loan from some bank and then pay EMI every month.
Now what if you want benefits of both the options. How?
If you decide pay full amount by cash/cheque, you pay Rs.7,50,000. This will make your pocket lighter by Rs.7,50,000 in one go. :-)
Here comes the SBI Advantage car loan with over draft facility. Consider a example you buy PUNTO worth Rs. 7,50,000. You pay Rs.2,50,000 as down payment and go for loan for Rs.5,00,000 for 7 years. For interest rate 11.00% you will pay EMI of Rs.8483 monthly.
Now from some where you won lottery of Rs.5,00,000 and you decided to pay back your loan amount. You simply go to bank and pay rest of remaining loan and done. Car loan is over, but you left with nothing of the money won. Sad isn't it!!! Plus penalty of pre payment if there is any.
Now here is the catch. Instead of normal car loan you go for SBI car loan with over draft facility.
The interest rate for overdraft loan would be 0.25% more. so the interest rate here would be 11.25%.
Monthly EMI would be Rs.8547, But what we will get by paying more?
In this case, If you have access money, you can do pre payment of the loan, but the pre paid loan principal amount you can withdraw and use as if it was a normal account.
Example: Suppose loan is for Rs.5,00,000, You take loan using SBI Over draft facility. After few months you pre pay 4,00,000. So what you pay now is interest only for Rs. 1,00,000. But Rs.4,00,000 you pre paid can be withdrawn and use if required. So here you maintain your liquidity plus you pay less EMI. So instead of keeping money in your savings account, you can keep money in your over draft account, withdraw as per your will and use it.
Hope this helps. If you require more information, do let me know.
This type of loan is only useful if you have some money left after paying down payment.